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De Blasio releases plan to substantially raise taxes on the rich, corporations

De Blasio releases plan to substantially raise taxes on the rich, corporations
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Democratic presidential candidate Bill de BlasioBill de BlasioBiden pledges to work with mayors Hundreds of bodies from New York virus surge still stored in freezer trucks Cuomo gets heated with reporters over NYC schools: 'What are you talking about? MORE on Thursday rolled out a tax plan that would substantially increase taxes on wealthy individuals and corporations, one day after he spoke about his desire to raise taxes during a primary debate.

The plan from de Blasio, the mayor of New York City, is more aggressive and wide-ranging than other candidates' tax proposals and includes a wealth tax, higher individual income tax rates and a significantly higher corporate tax rate. De Blasio estimates that the plan would raise upward of $10 trillion over a decade.

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"We need fundamental change both in society and our tax code, and my tax plan is the only plan in the Democratic field that faces up to the scale of the challenges we face,” de Blasio said in a statement. 

De Blasio, a low-polling progressive candidate, rolled out his tax plan after he said during Wednesday's presidential debate that he would "tax the hell out of the wealthy." During the debate, de Blasio also criticized another candidate, Sen. Michael BennetMichael Farrand BennetDemocratic senators urge Facebook to take action on anti-Muslim bigotry Hickenlooper ousts Gardner in Colorado, handing Democrats vital pickup Lobbying world MORE (D-Colo.), for raising concerns about tax increases that would be needed to pay for "Medicare for All."

De Blasio's tax plan would create a wealth tax that would tax assets between $10 million and $25 million at 1 percent, assets between $25 million and $100 million at 2 percent and assets above $100 million at 3 percent.

His proposed wealth tax would apply to more people than would the wealth tax proposed by a fellow presidential candidate, Sen. Elizabeth WarrenElizabeth WarrenOn The Money: Biden to nominate Yellen for Treasury secretary | 'COVID cliff' looms | Democrats face pressure to back smaller stimulus Biden to nominate Janet Yellen as Treasury secretary: report Bottom line MORE (D-Mass.). Warren's proposed wealth tax would tax net worth between $50 million and $1 billion at 2 percent, and net worth above $1 billion at 3 percent.

De Blasio also proposes raising the current top tax bracket for individuals from 37 percent to 40 percent, then adding a 50 percent bracket for income between $1 million and $2 million and a 60 percent bracket on income above $2 million.

De Blasio also proposes to raise the corporate tax rate from 21 percent to 35 percent — the rate that existed before the enactment of President TrumpDonald John TrumpBiden team wants to understand Trump effort to 'hollow out government agencies' Trump's remaking of the judicial system Overnight Defense: Trump transgender ban 'inflicts concrete harms,' study says | China objects to US admiral's Taiwan visit MORE's 2017 tax-cut law. 

Many Democrats think the 21 percent rate is too low but don't want to raise the rate back up all the way to 35 percent. For example, two Democratic presidential candidates, former Vice President Joe BidenJoe BidenBiden team wants to understand Trump effort to 'hollow out government agencies' Overnight Defense: Trump transgender ban 'inflicts concrete harms,' study says | China objects to US admiral's Taiwan visit Protect our world: How the Biden administration can save lives and economies worldwide MORE and former Rep. Beto O'RourkeBeto O'RourkeMexico emerging as foreign policy challenge for Biden Beyoncé sports pro-Biden mask on Instagram Harris to travel to Texas Friday after polls show tie between Trump, Biden MORE (D-Texas), have floated raising the corporate rate to 28 percent — the rate proposed by former President Obama's administration.

Another portion of de Blasio's plan would replace the estate tax with a tax on inheritances, with heirs receiving more than $1 million having their inheritances taxed as income.

Other parts of de Blasio's tax plan include a financial transaction tax, repealing the Trump tax law's 20 percent deduction for income from noncorporate businesses, a stronger alternative minimum tax and a tax on risky bank loans.

Americans for Tax Fairness Action Fund, a liberal group that does not endorse candidates, cheered de Blasio's plan.

“Mayor de Blasio’s progressive tax-reform plan is a recognition not only that the Trump-GOP tax cuts for the wealthy are unfair and aren’t working, but also that raising taxes on the wealthy and big corporations is good for the economy,” the group's executive director, Frank Clemente, said in a statement.