President Biden and Congress recently unveiled the latest version of the federal recovery package, coined the Build Back Better plan. This package represents a significant investment in Montana communities, geared toward expanding economic opportunity and lowering costs for families and workers. Historic investments in child care, preschool, school nutrition, and the child tax credit will help lift millions of children from poverty. The Montana Budget & Policy Center will continue to update this page with information on key components of this package.
Congress has also set out a plan to pay for these new investments. The revenue framework for the federal reform plan will raise nearly $2 trillion over the next decade from the richest Americans and large, profitable corporations.
Many of our large, profitable corporations are paying no federal income tax. The package will fix that by ensuring that corporations with profits in excess of $1 billion pay a minimum tax of 15 percent on the profits they report to their shareholders. The plan also imposes a 1 percent surcharge when a corporation buys back its own stock - a scheme often used to shift profits to shareholders without paying dividends. The framework also addresses offshore corporate profits with a 15 percent minimum tax.
Our wealthiest individuals are also paying much less than they should in federal taxes. A much-needed high wealth tax will help ensure those with the most begin to pay their share with a surtax on incomes above $10 million. Lastly, the plan targets staggering tax avoidance at the top by increasing IRS funding to improve tax collections of taxes already due and avoided by the wealthiest.
We have a once-in-a-lifetime opportunity to address Montanans' challenges and create a better country for everyone. We can make housing affordable, make it easier to raise a family, make sure everyone has good food to eat, and make sure seniors can stay in their homes. And we can afford it with policies that impact only the wealthiest. It is possible if Congress acts now.
Make your voice heard by contacting Senator Tester here.
MBPC is a nonprofit organization focused on providing credible and timely research and analysis on budget, tax, and economic issues that impact low- and moderate-income Montana families.