Government Watch / Politics

No End in Sight: Why Democrats Won’t Stop Pushing Socialist Tax Policies

Tax

Over the last eighteen months, Americans have seen our Congress pass record spending bill after record spending bill, to the tune of over $6 trillion dollars now. This was partly COVID-19 emergency and relief funding but under the Democrat-held Congress, harmful changes to tax policy found their way into unrelated legislation of all kinds.

After all of that spending, President Biden is still pushing his Build Back Better plan, a wide-ranging expansion of government, tax hikes, environmental regulations, and social programs, a version of which ended up passing the House in December. The House-passed version would raise taxes on top earners, but would essentially give millionaires and billionaires a 5.4% tax break when filing in 2022 compared to current law, according to Congress’ Joint Committee on Taxation. In addition, it would raise the state and local tax deduction from $10,000 to $80,000, giving folks in blue state’s a massive windfall, while crushing small businesses by limiting the pass-through tax deduction, increasing the capital gains tax, and raising the corporate tax rate from 21% to 26.5%. It’s important to note that this would undo President Trump’s historic 2017 Tax Cuts & Jobs Act law which brought the corporate rate down to 21% in the first place. As a result, we saw historic growth in wages, annual income, stock market valuations, and reduced unemployment to historic lows across the board.

“Congress wants to dramatically expand the size of government and fund it by crushing small businesses with massive tax increases. Small businesses and their employees are struggling to recover from the pandemic and government-imposed shutdowns and mandates, and Washington’s response is to take more of their hard-earned money,” said National Federation of Independent Businesses (NFIB) President Brad Close said in a letter to Congress last year. Fortunately for small businesses across the country, Sen. Joe Manchin (D-WV) has effectively stalled the bill in the upper chamber.

President Biden’s latest idea, released in his fy2023 budget is to create a new “billionaire’s minimum tax” which resurrects the dangerous idea of taxing unrealized capital gains. For millions of Americans with retirement savings in the stock market, this plan would spell bad news for their lifetime savings. Eventually, as we have seen before with the income tax and Alternative Minimum Tax, taxes created for the wealthy end up expanding to also hit the middle class. The new tax would be nearly impossible to implement and require an army of agents to track and value assets annually, creating massive compliance costs for small businesses. 

Also included in Biden’s new budget are plans to make the death tax worse for family businesses, increase marginal and corporate tax rates, and doll out special breaks and handouts for political allies. Given the combination of increased taxes, historic inflation, trillions of dollars worth of record-breaking spending, Americans are asking themselves, “is there no end in sight to Democrats pushing social tax policies without any accounting for the trillions that have already been spent?” It’s a fair question, after all, and Democrats in power will be hearing it frequently from constituents as the 2022 midterms approach.

Bob Carlstrom is President of AMAC Action 


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Robin Boyd
3 months ago

Socialism will quickly allow the U.S. to become Communist if We the People continue to allow Progressive government workers, elected, appointed or hired, pass Socialist laws that are taking full control of our social lives. It must stop!

edward
4 months ago

“Why Democrats Won’t Stop Pushing Socialist Tax Policies”I have been saying this since “useful idiots” elected obama. The communists are sooooo close to attaining their goal of total dominance that have broken into a sprint for the finish line. they dont hide who/what they are because they are able to get away with everything. look at the 2020 election cheating and the jan 6 prisoners of war.

Larry W.
4 months ago

It’s policy before people with the democratic party. They have the power to make the right choices for America but they do not have the integrity (moral uprightness) to act accordingly. Forget about the democrat party of the past, it’s gone and now it is the party of conquer and burn and folks better see what is going on and stop voting for them. Any vote for any democrat is a vote against our future.

James Thompson
4 months ago

They sure hate Americans. They are fighting for globalization. I’m not a globalist, most Americans arn’t. Three years ago we had it better here then anywhere else. Americans have to be knocked down to third world level to assist in there agenda.
The most unamerican Administration in history and the worst Congress ever.

Gail Tubbs
4 months ago
Reply to  James Thompson

George Soros is behind all of this.

James Thompson
4 months ago
Reply to  Gail Tubbs

He pays them better then we do.

Stephen Russell
4 months ago

Maybe change in Nov ahead

Barb304
4 months ago

I’m praying that we make a dramatic difference come November. God bless America

David Millikan
4 months ago

Why do you think they are RAISING PRICES and TAXES? It’s because they have to GIVE IT TO ALL THE ILLEGAL ALIENS DICTATOR Beijing biden is LETTING IN. Plus, he has to PAY his Espionage buddies back with OUR TAX DOLLARS.
Each day that goes by with DICTATOR Beijing biden in OUR WHITE HOUSE WEAKENS OUR COUNTRY.
Those that allow it do NOT DESERVE to live in the UNITED STATES of AMERICA.
For those that give up FREEDOM for SAFETY, DESERVE NEITHER.

Robert Coons
4 months ago
Reply to  David Millikan

Sad to say , I believe there are too many ( politicians ; st. & Fed. , generals , judges , media people ; news & actors , etc. . Just too many elite ones , want a one world gov. & All the evil ( money ) that comes with that for them !!!!!

PaulE
4 months ago

Why is there this ludicrous expectation that Socialists will stop their destructive policies just because they inflict pain and misery on the people they rule over? That pain and destruction is a natural consequence of the tenets of socialism, which requires that the masses be subjugated to serve the needs and wants of the State and elites that rule over them. By definition, that means crushing the lives of the masses to force them into compliance. It is by its very nature an authoritarian form of government.

Did Stalin stop his socialist policies after he ended up killing millions of his own people and enslaving hundreds of millions? Did Mao stop his socialist policies after killing 60 million of his own people and enslaving over a billion people? Same goes for Mugabe in Zimbabwe, Peron in Argentine, Castro in Cuba, on and on. It’s like asking for ice to not be cold or fire to not be hot. It’s a ludicrous expectation by someone who doesn’t understand the fundamentals of what socialism is all about.

Socialists don’t care about the pain and misery they inflict upon the common masses, as the only purpose of the masses is to serve the State. The Democrat Party in this country is comprised almost entirely of Socialists at this point. You can literally count the number of non-Socialists in Washington on one hand. So of course Democrats will continue to push tax policies designed to impoverish the masses and transfer the wealth of the private sector to the State and those that rule in the government. To expect something different is delusional.

Every tax proposed by the Democrats, that they claim will only impact “the rich” is a Trojan Horse. Just like the federal income tax, that was originally only supposed to hit the very rich, and the alternative minimum tax, that was only supposed to impact about 200 of the richest families in the country when enacted, virtually every tax quickly ends up migrating down to impact most or all of the middle class in this country. Transferring literally trillions in personal wealth to the government over the decades. Every single tax Biden is proposing in this current budget will be no different. Once enacted, the threshold for who will be impacted will the lowered time and again until everyone is paying these confiscatory wealth taxes on virtually everything your own. The end result being you’ll end up owning nothing, because you will have been forced to sell everything, at deep discount prices, to pay your annual assessed federal tax bill. Thus achieving the socialist promise of “equal outcomes”. Everyone, but the few ruling elites, will be poor and starving.

Janet
4 months ago
Reply to  PaulE

PAUL E. I don’t disagree with you, but I am trying to figure out what currently defines “middle class” as I fear that the reality is that it no longer exists unless it is outlined as the 6 figure tech employees. What would have been considered middle class is fastly becoming the upper poor.

Boz
4 months ago
Reply to  Janet

BlNG0

MariaRose
4 months ago
Reply to  Janet

The classification of income for the middle class has risen to start at a 6 figure minimum as the illusion of expected salary. Yes, I know that many jobs never reach this minimum, even union jobs, as that “illusionary” salary is not a typical salary of most working-class individuals. The trouble with the idealist progressive socialist members of the Democrats is that they are not going to admit that they are wrongly informing the population because they would have to give up their newfound status as being the one in charge of the funds. After all, to quote AOC, $174,000 is too little for a person in Congress to live on, and her student college debt should be erased, not mentioning, that she always lived a lifestyle above her actual means. Unfortunately, income over $40,000 pays the full price on everything, with no discounts.

Rhonda
4 months ago
Reply to  PaulE

Great comment.

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