President Biden plans to unveil a series of job-killing tax hikes as a part of his next spending plan with even more tax increases on the table. Here are some details on these policies.
Democrats refuse to provide job creation estimates in their so-called jobs plan.
- Despite over 70 instances of the word “jobs” in President Biden’s “jobs plan,” Democrats provide no estimates for jobs they would create.
- Democrats have yet to respond to a letter by Republicans in early February seeking an estimate for jobs that would result from their “stimulus” bill.
Democrats’ tax hikes will hurt American workers.
- Ordinary Americans will shoulder a significant portion of Biden’s corporate tax hike. There’s no hiding the fact that this tax hike will take a bite out of Americans’ paycheck.
- Nonpartisan congressional budget scorekeepers estimate that workers will bear about 25 percent of the Biden tax increase, while other economic experts put that share much higher, at 50 percent, or even 70 percent.
- Even workers in the bottom 20 percent of earners would on average see a cut in paychecks in the long run.
Democrats’ tax hikes mean lower wages and less growth.
- According to the Tax Foundation, Biden’s corporate rate increase alone will eliminate 159,000 jobs and reduce wages by 0.7 percent.
- Biden’s tax hike to 28 percent, in addition to state taxes, would drag the United States back to having the highest combined corporate tax rate in the developed world, 9 percentage points higher than the average of developed nations.
- This could reduce our economic growth by 0.8% and the capital stock by 2.1 percent.
Democrats’ tax hikes mean your utility bills will jump.
- Republican tax cuts enabled a drop in utility rates across the country, but Democrat tax increases will have the reverse effect.
Democrats’ tax hikes target small businesses.
- Nearly 1 million small businesses in our country are organized as “C corporations.” Biden’s proposal would increase their tax rate by 33 percent, at a time when many small businesses are struggling to recover from the pandemic.
- Many other American small businesses pay taxes as individuals, so Democrats’ forthcoming individual tax increases will ensure that no small business is exempt from Biden’s tax hikes.
Democrats’ tax hikes will send jobs and businesses overseas.
- Under our prior broken tax code, hundreds of billions of dollars and hundreds of companies each year fled to foreign countries.
- Republicans’ 2017 tax reform reversed that trend, bringing back companies and foreign earnings to be invested in the U.S.
- President Biden’s corporate tax proposal would turn back the clock and forfeit those gains.
- Democrats want to make American companies pay higher taxes than their foreign-based competitors.
- In addition to giving the United States the highest combined corporate rate in the developed world, Biden wants to impose an uncompetitive minimum tax on American companies.
- America is the only country that now sets a minimum tax on the foreign earnings of domestic companies—now President Biden wants every country to impose such a tax, in exchange for his promise to keep the U.S. minimum tax higher than other countries.
- President Biden is promising to make American companies and workers uncompetitive.
Democrats think America should tax businesses at a higher rate than Communist China.
- China has a corporate tax rate of 25 percent, whereas President Biden wants to increase the American corporate tax rate from 21 percent to 28 percent.
Additional Democrat tax hikes will go after family farms, restaurants, and other small businesses.
- President Biden is proposing heaping more taxes onto family businesses by adding a second Death Tax that will increase paperwork and costs.
Democrats will also be seeking special tax breaks for the wealthy.
- Democrats are more willing to commit to numbers of electric vehicle charging stations than to estimating jobs created with $174 billion in electric vehicle subsidies for the wealthy.
- Some Democrats are digging in their heels and saying they won’t support the bill without $80 billion per year in special giveaways to the wealthy living in high-tax states—at a moment in which Democrats are attempting to prevent states from lowering taxes.
Democrats plan to ding people with retirement accounts.
Reprinted with Permission from US Committee on Ways and Means
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