Dem senators eye tax hikes to pay for $3.5T spending package

( If you’ve been wondering how the Democrats plan on paying for that massive $3.5 trillion spending package they are attempting to jam through Congress, and if you assumed it was through new taxes, then give yourself a pat on the back. That’s precisely what they are planning.

Reports just revealed how Senate Democrats on the Finance Committee are looking at a wide range of new tax proposals that will pay for the package, and they will likely result in President Joe Biden walking back on his pledge not to increase taxes on Americans making less than $200,000 per year.

Thankfully, the package is not yet confirmed, and it’s unclear how the Democrats will pass it without the support of moderate Democrats Kyrsten Sinema and Joe Manchin. However, should they eventually negotiate the passage of the spending bill, they will need to take action to pay for it.

The Washington Examiner reports that while for several weeks we have known that some proposals to pay for the spending include raising corporate income tax and capital gains tax, other policies have just been proposed including a tax on carbon emissions, stock buybacks, and executive compensation.

The capital gains tax increase is an interesting proposals – not in the sense that it is a good idea, but because it would effectively crack down on retail investors who have made money on so-called “meme stocks” over the last year. It would also hurt people who chose to take their finances into their own hands and invest in stocks or even in cryptocurrency in recent years. We all know how the Democrats don’t like personal autonomy, and this is a good way of stamping it out.

The Examiner also reported on a proposal to remove tax breaks for oil and gas companies, and one to implement a 20-cent-per-pound tax on virgin plastics, which are produced directly from oil and not from recycled materials.

In short, we should probably expect many more new taxes over the next three and a half years.