Many policy decisions over the course of decades are responsible for this explosion in inequality-including fundamental failings of the U.S. True tax rate of the richest 25 people in the United States By the same token, if Congress falls short in fundamentally fixing the tax code, it will also fall short in making the investments the country needs. 5 Therefore, the more revenue Congress raises in the budget reconciliation bill, the more it will be able to invest.
But many members have expressed reservations about deficit financing, and the Senate’s rules prevent reconciliation bills from increasing deficits in the long term. Given the urgency of these challenges and persistence of negative real interest rates, 4 Congress need not fully “pay for” all of these priorities. In the upcoming fiscal year 2022 budget reconciliation bill, Congress has a real opportunity to permanently cut child poverty nearly in half ensure universal preschool and affordable child care guarantee paid family and medical leave expand home care and improve the quality of home care jobs help millions of students afford college tuition and make community college free lower health care premiums and extend coverage expand affordable housing dramatically reduce racial disparities in income and wealth and forge the transition to a clean energy economy that produces new jobs and a healthier planet. In doing so, the congressional majority can lay the groundwork for a stronger and more inclusive economy for decades to come. 3 It’s time for federal policymakers to act. Strong majorities believe that raising taxes on the wealthy and corporations helps, not hurts, the economy-and they are more likely to support investments when assured that they are paid for by taxes on the wealthy and corporations. Recent polls show that raising taxes on the rich and corporations is one of the most popular elements of President Joe Biden’s Build Back Better agenda, with the support of roughly 2 in every 3 Americans. They now have a rare opportunity to fix it, with a mandate from and the strong backing of the American people.
For years, many policymakers have decried the tax code as being slanted against working people.