Jorge Castro Quoted on Possible Impact of ProPublica Report on Raising Taxes on Wealthy in InvestmentNews
"ProPublica Report Stokes Debate on Wealthy Paying Fair Share in Taxes"
Tax Member Jorge Castro, former Democratic Congressional tax aide and Counselor to the IRS Commissioner during the Obama administration, commented on ProPublica's recent report asserting that several billionaires typically pay little to no federal income tax while their wealth grows. The report has stoked the debate about increasing taxes on the wealthy. President Biden has proposed boosting the capital gains rate to over 40 percent for people earning more than $1 million annually, ending the "step-up" basis for inherited assets by taxing appreciation of more than $1 million, and raising the top ordinary income tax rate to 39.6 percent for people making more than $400,000. These tax increases would help fund social spending programs. Narrow Democratic majorities in the House and Senate make passage of tax hikes a heavy political lift, and much of the resistance could come from moderate Congressional Democrats. However, Castro said the ProPublica article could start to sway those key group of lawmakers. "Now that the article has shed light on the issue, it could change the political calculus for those moderates," Castro noted. "That could add momentum to those Congressional Democrats who want to raise taxes on the wealthy."