Closeup Of US Currency, TFP File Photo

Democrats Propose Massive Tax Increase, One Of The Largest In History, Funding Progressive Wish-List

In order to pay for President Joe Biden’s massive $3.5-trillion expansion of the social welfare state, Democrats in Congress have proposed to do what they do best: raise taxes.

Democrats on the House Ways and Means Committee, which oversees the federal tax code, unveiled on Monday an 881-page bill that reveals how Biden’s extravagant plan is funded.

According to the Washington Times, the Democrats’ bill would undo much of what former President Donald Trump and a then-Republican Congress enacted to help boost the economy to levels unseen in decades.

Democrats seek to raise the corporate tax rate from 21 percent to 26.5 percent, while also boosting the capital gains tax from 20 percent to 25 percent.

The plan also increases the top tax rate on individual earners from 37 percent to the 39.6 percent rate charged under President Barack Obama – even as the federal government is already recording record hauls in income-tax revenues under the Trump tax plan.

In a nod to radical Democratic Sen. Elizabeth Warren, the bill imposes a constitutionally dubious “wealth tax,” levied as a 3 percent surcharge on people who make more than $5 million a year.

The Democrats also propose to jack up the minimum tax on foreign income earned by U.S. corporations from 10.5 percent to 16.6 percent.

And they would raise taxes on tobacco products.

The Democrats would combine those measures with the elimination of numerous income-tax deductions that Trump put in place.

“Altogether,” the Times noted, “the proposal amounts to one of the largest tax increases in U.S. history.”

The Times added that the bill also “amounts to a wish list of liberal priorities such as proposals to fight climate change by promoting electric vehicles and weaning the electric grid off fossil fuels, adding vision and hearing benefits to Medicare, and providing tuition-free community college and government-paid family leave for all workers.”

While it’s debatable whether allegedly moderate Democrats, such as Sens. Joe Manchin of West Virginia and Kristen Sinema of Arizona, can help Republicans derail this thing, the bill has at least awakened business interests to the economic threat posed by the Biden administration and a Democrat-led Congress, and united them with Republicans in opposition.

The U.S. Chamber of Commerce, for instance, utterly denounced the bill on Monday.

“Rolling back job-creating tax reforms will slam the brakes on hiring and wage increases. Every CEO and business leader is concerned about this proposal, and the Chamber strongly opposes it. This reconciliation bill is an existential threat to America’s fragile economic recovery and future prosperity,” said chamber Executive Vice President and Chief Policy Officer Neil Bradley.

“This is an everything but the kitchen sink bill that includes every policy idea the majority has been unable to pass. We will not find durable or practical solutions in one massive bill that is equivalent to more than twice the combined budgets of all 50 states. The success of the bipartisan infrastructure negotiations provides a much better model for how Congress should proceed in addressing America’s problems.”

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One Reply to “Democrats Propose Massive Tax Increase, One Of The Largest In History, Funding Progressive Wish-List”

  1. The Republican wish list gets filled every year. More debt. More money for the rich. No taxes for corporations or the rich. The Democrats wish list is simply putting things back in fiscal balance. It’s an attempt to save the country. It’s what the majority of Americans asked for after three disastrous Republican administrations.

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