This brave New Democrat party is embracing demographic shifts to become the party of the ultra poor (don’t pay taxes) and the ultra rich (don’t hardly pay taxes either) and going hard against the middle class, because you know, f those dirty middle class Americans - they are all racists and terrible people anyway.
The new bill the democrats passed in the senate on party lines did a last minute swap on something arcane to most - the original bill was going to nix the carried interest tax provision - but it was preserved on the efforts primarily of senator Senima (D) (Arizona)
In its place a 1% tax on stock buybacks was added.
Superficially, this sounds really progressive. But when you understand just a bit on how this stuff actually works (which of course many people don't) it's an obvious anti-liberal move.
Carried interest allows the largest richest hedge funds, money managers and brokers to benefit from long term capital gains that their clients make. So instead of having to pay a normal income tax rate, they get the more favorable capital gains rates tax treatment.
Even though they aren't actually a long term investor, they are just fancy service providers like a waiter or a Barber.
On the other side the democratic socialists love to pound the table at stock buybacks as the excesses of the rich - which is semi true, but the whole truth is stock buybacks benefit all investors. Which includes the mega rich - but also includes every pension plan, every invested labor union, every 403(b) for teachers, cops and fire fighters, anyone with a 401(k) etc.
So the dirty secret that idk maybe 25% of people would understand is that a provision that by and large would have primarily hit the richest fattest cats - was cut - and replaced by a provision that penalizes a broad swath of normal run of the mill middle class Americans - by legislation 100% controlled by democrats.
And for those who think somehow the richest power brokers are going to ever lose this game - regardless of party - you Poor sad delusional liberal populists.
All the super rich really want is more concentration of power in the federal government. More power in one place = more concentrated results for your political bribes, oops my bad I mean "totally legal campaign contributions"
Also as a nice bonus there is a provision to tax methane emissions - which to some degree I can get on board with - but targeting extra taxes at oil producers right now seems pretty tone deaf to inflation, particularly in regard to gas prices.
And then doing all of this tax and spend activity in a bill called the inflation reduction act is some next level Orwellian maneuvering.