Are you having trouble keeping up with the growing list of tax increases being proposed? We don’t blame you. With bad ideas being thrown around right and left, AMAC Action is here with a list of them all.
Earlier this year the Biden administration released two plans that represented the President’s agenda. Interestingly dubbed the American Jobs Plan and American Families Plan, though most economic projections show the plans would kill jobs and hurt working families, these outlines included a number of tax hikes.
Biden’s American Jobs Plan tax increases
- Increase the federal corporate tax rate from 21 percent to 28 percent and tighten inversion regulations.
- Raise the tax on Global Intangible Low Tax Income (GILTI) to 21 percent, calculate it on a country-by-country basis, and eliminate the exemption of a 10 percent return on tangible investment abroad (QBAI).
- Impose a 15 percent minimum tax on corporate book income, which would be levied on a firm’s financial profits instead of taxable income for firms with revenue over $100 million.
- Repeal the Foreign-Derived Intangible Income (FDII) deduction, which incentivizes firms to move intellectual property (IP) into the U.S.
- Provide a tax credit for certain onshoring activity and deny expense deductions on jobs that were offshored.
- Increase corporate tax enforcement.
- Eliminate certain deductions and credits for the fossil fuel industry
Biden’s American Families Plan tax increases
- Raise the top marginal rate on individuals to 39.6 percent
- Apply ordinary income tax rates to capital gains income of individuals with more than $1 million in taxable income
- Tax unrealized capital gains at death with a $1 million exemption for single filers and $2 million exemption for joint filers, with additional exemptions for certain types of assets
- Apply the 3.8 percent net investment income tax to all income above $400,000 including active pass-through income
- Make permanent the 2017 tax law’s 4639(I) limitation on pass-through businesses’ losses above $250,000 for single filers and $500,000 for joint filers
- Limit 1031 Like-Kind Exchange deferral for gains above $500,000
- Tax carried interest as ordinary income
- Increase individual tax enforcement and enact new reporting requirements for financial institutions
But wait, that’s not all! Both the House and Senate tax-writing committees also recently submitted their tax “pay-fors” for full Congressional consideration. While many of the provisions overlap with Biden’s plans, Congress has managed to come up with even more tax hikes to pay for their social spending bills.
A few of Congress’s additional bad ideas include:
A new double death tax on capital gains at death
Backdoor changes to business valuation rules, forcing more families to pay the death tax
New tobacco taxes, hitting those making under $400,000
A “mark to market” plan to tax unrealized capital gains every year
A provision to study a “per mile” tax on driving, which could eventually be implemented
New restrictions for IRAs
Wow, that’s over 20 tax increases at a time when many small businesses are just struggling to keep their doors open. At AMAC Action, we are helping our allies on the hill push back. AMAC Action supported Republicans as the media attached them for not helping Democrats by raising the debt ceiling and our members have helped contribute to the current stalemate over tax hikes on Capitol Hill. Now is no time to raise taxes on America’s seniors and small businesses.
Bob Carlstrom is President of AMAC Action
We hope you've enjoyed this article. While you're here, we have a small favor to ask...
As we prepare for what promises to be a pivotal year for America, we're asking you to consider a gift to help fund our journalism and advocacy.
The need for fact-based reporting that offers real solutions and stops the spread of misinformation has never been greater. Now more than ever, journalism and our first amendment rights are under fire. That's why AMAC is passionately working to increase the number of real news articles we deliver WEEKLY, while continuing to strengthen our presence on Capitol Hill.
AMAC Action, a 501 (C)(4), advocates to protect American values, free speech, the exercise of religion, equality of opportunity, sanctity of life, the rule of law, and love of family.
Thank you for putting your faith in AMAC!Donate Now