July 3, 2022

Progressives suspiciously silent about tax loophole for Wall Street investors

Progressive Democrats have remained silent about the tax provisions in the Build Back Better package that would affect the most wealthy of Americans, according to The Daily Caller.

According to the publication, the new plan will allow those working in the financial services industry to pay a lesser tax rate.

This provision blocks the pay increase from affecting some of the wealthiest donors to the Democratic Party due to what is packaged as a performance bonus. 

It is reported to be applied to investment managers who are paid on profits of their client’s investment options, which is a plan wildly popular with the Wall Street set, since it encourages investment, which are taxed at 23.8%, instead of the standard 37% income tax rate.

This plan was not something former President Donald Trump endorsed. In fact, the former president asserted it would allow hedge fund managers to “get away with murder.” Trump’s tax plan was decidedly different than Biden’s, offering particular support for production industries.

One of the most prominent proponents of the wealth equity plan, Independent Vermont Sen. Bernie Sanders has called for the bill to require the “very wealthy [to] finally pay their fair share,” but was suspiciously silent on the investor’s portion of the bill.

Sanders’ camp did not respond to multiple requests for comment from The Daily Caller.

“The package does raise the corporate interest rate to 15% and creates a surtax on the incomes of some of the wealthiest Americans. However, it also raises the State and Local Tax (SALT) deduction cap to $80,000 a year,” The Daily Caller reported.

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