In a bid to generate funding for new stimulus spending, Democrats want to let the Bush tax cuts for upper-income Americans expire on Dec. 31. Moreover, they say, the richest Americans should have to pay Social Security taxes on all the income that they make, not just the first $106,800 – the current cap.
But Senate Democrats are also proposing a lower tax rate for US businesses who are keeping foreign-generated profits overseas, a move favored by Republicans. The Democrats would use the new revenues to support the infrastructure bank. With the agenda still shaped by spending cuts, compromises on tax reform may be the only viable route to funding new stimulus spending.
