A new tax bill introduced Tuesday by Sen. Bernie Sanders (I-Vt.) would help fund the infrastructure of a nation in dire need.
Sanders’s plan would give the Treasury Department the authority to issue $4.3 trillion in tax credits to corporations and businesses, which would be matched by other federal spending and revenue.
The plan would also increase taxes on the wealthy.
The money would go toward infrastructure projects, such as highway repairs and school construction, and infrastructure upgrades, such the reopening of tunnels.
In addition to the infrastructure programs, Sanders’ bill would raise the federal minimum wage to $15 an hour, phase out deductions for state and local taxes and increase the corporate tax rate to 20% from the current 15%.
He would also phase out the estate tax and the alternative minimum tax on estates over $1 million.
The plan would provide $100 billion for job training programs, $2.7 trillion for infrastructure projects and $1 trillion in refundable tax credits.
The bill also calls for $3.5 trillion in cuts to the military and $2 trillion for the State and Local Tax Credit Program.
The tax plan would create a new capital gains tax credit that would be phased out over time, according to Sanders, who argued that corporations should pay a 25% tax rate on their profits.
In addition, the bill would eliminate the Alternative Minimum Tax, which the Sanders plan would lower.
The bill would also eliminate deductions for federal and state taxes, according the senator, and increase taxes for corporations that have a negative cash flow and don’t pay payroll taxes.
Sanders called it a “revenue neutral” plan.
Sen. Bernie Bernie Sanders speaks at a rally in Los Angeles, California, U.S., November 10, 2021.AP file photoSen.
Elizabeth Warren (D-Mass.) said the tax bill was “an important step forward for the middle class and a big step forward from Washington.”
She added that it was “just the beginning of a much bigger and bolder agenda to restore America’s middle class to a position where we have a strong economy and jobs and incomes that work for everyone.”
In addition, Sanders said the bill “will give us the tools to build the roads, bridges, airports and other vital infrastructure of the future,” including infrastructure upgrades and repairing the nation’s crumbling infrastructure.
The tax plan “would restore America to its true greatness,” Sanders said.
The Senate Finance Committee approved the bill in a vote of 25-12, with only four Democrats voting against the bill.