Congress is working on a spending bill that currently proposes including dental care, glasses and hearing aids for Medicare patients. It is also contains monthly payments of between $250-300 for children under age 18 to parents for their food and clothing.
Also included would be moving the tax rate for those earning over $425,000 from 37% to 39.6%, which it had been before 2017. Anyone earning over $5 million a year would pay an additional 3 percent. In addition, there would be increased funding for IRS for computer upgrades and additional audits for the top 1 percent of earners. The top 1 percent avoids paying income taxes by hiding money in investments or pass through businesses which would bring in $600 billion a year to the U.S. Treasury.
Roth IRAs would be capped. Currently Peter Thiel, cofounder of PayPal, put options on various newly-founded companies into a Roth IRA that is presently worth over $5 billion (Yes, BILLION). None of it taxable under current law.
Likely the cap would be $5-10 million — still a lot of money.
The $3.5 trillion spending bill is for over the next decade. During the same time, at current spending rate, the U.S. will spend $11 trillion on military and the Pentagon. It's time to spend more wisely and tax the super wealthy.
Pamela Farris, Rochelle