If history has taught us anything it’s that Democrats and tax hikes go hand in hand.
Determined to see through the unprecedented $3.5 trillion spending bill that’s little more than a far-left grab bag, House Democrats unveiled major tax hikes Sunday to justify the massive price tag.
Democrats outlined their tax proposal, which includes top corporate and individual tax rates of 26.5% and 39.6%, respectively, and a 3% surcharge on individual income above $5 million and a capital gains tax of 25%, according to CNBC.
In effect, the proposal goes a long way toward undoing the Trump tax cuts passed in 2017.
The network said it’s “unclear how much the tax increases would raise and if the new revenue would offset the full investment in social programs,” though The Washington Post reported that the tax plan “would raise $2.9 trillion in new taxes and revenue predominantly targeted toward wealthy Americans, corporations and investors.”
KEY on corporate rate:
— Looks like Ds want corporate tax rate raised to 26.5% BUT ONLY for firms w/ +$5 million income
— For businesses w/ income under $400K they want to LOWER the rate from 21% to 18%
— Firms w/ $400K-$5M would see rate flat at 21% as current law https://t.co/CITxYNphOo
— Jeff Stein (@JStein_WaPo) September 12, 2021
For what it’s worth, there are thousands of small businesses that top $5 million a year in income.
And while the Republican Party labeled the tax package “the highest tax increases in American history,” U.S. Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Committee, claimed that the proposed tax increases will “expand opportunity for the American people.”
“On Tuesday, we will continue our work on the Build Back Better Act with the consideration of investments to provide critical support to families, spur the development of clean energy, reinstate Build America Bonds, and improve Americans’ ability to afford health care,” Neal said in a statement.
“Our proposals allow us to both address our perilously changing climate and create new, good jobs, all while strengthening the economy and reinvigorating local communities,” he added. “We seek to help families better afford essentials with the continuation of the expanded Child Tax Credit and investments that will lower the cost of prescriptions and health insurance premiums. And we can do all this while responsibly funding our plans. Taken together, these proposals expand opportunity for the American people and support our efforts to build a healthier, more prosperous future for the country.”
The bill must get through the U.S. Senate, and Sen. Joe Manchin, D-W.Va., said on Sunday that he was in no hurry to support the bill because “it makes no sense at all.”
“We don’t have an urgency. Don’t you think we ought to debate a little more, talk about it, see what we got out there?” Manchin told on NBC’s “Meet the Press.”
The moderate Democrat has called for a corporate rate of 25%, which is lower than what House Democrats have proposed. Manchin has also expressed concerns about the bill adding to budget deficits and wants Democrats to reduce the cost of the bill significantly.
President Biden had called for a 28% corporate tax and a 39.6% capital gains rate.
Senate Majority Leader Chuck Schumer, D-N.Y., and Speaker Nancy Pelosi, D-Calif., plan to pass the legislation through the budget reconciliation process, which will not require Republican support, CNBC reported, adding that they will need votes from every member of the Senate Democratic caucus and all but three House Democrats.
Republicans on the Ways and Means Committee took to Twitter to say: “Democrats’ $3.5T budget will result in the highest tax increases in American history. These tax hikes will impact every American and only further cripple our recovery coming out of the pandemic.”
Democrats’ $3.5T budget will result in the highest tax increases in American history.
These tax hikes will impact every American and only further cripple our recovery coming out of the pandemic.
— Ways and Means GOP (@WaysandMeansGOP) September 12, 2021
Democrat talking points will insist that it’s the rich who are picking up the tab, but a quick perusal of social media suggests otherwise:
how is that a tobacco tax doesn’t break the no-taxes-on-people-making-under-$400k, but a gas tax does?
are smokers supposed to be richer than people who drive cars https://t.co/TfoBgshqu7— Catherine Rampell (@crampell) September 12, 2021
President Biden pledged not to raise taxes on families making less than $400,000 per year.
That doesn’t seem to matter to Dems on the House @WaysMeansCmte, as they want new taxes on vaping products “equivalent” to those on deadly cigarettes.
This will cause *more* smoking. https://t.co/UWuJYFGOBi
— American Vaping Assn (@AVABoard) September 12, 2021
“The proposal further calls for increasing taxes on ‘tobacco and nicotine’ by roughly $100 billion, while also raising $16 billion from changing rules to ‘treat cryptocurrency the same as other financial instruments.'” https://t.co/Gohw6wdySH
— Jacqueline Alemany (@JaxAlemany) September 13, 2021
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The longest-tenured writer at BizPac Review, Tom grew up in Maryland before moving to Central Florida as a young teen. It is in the Sunshine State that he honed both his passion for politics and his writing skills.
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