This crippling tax hike comes at a time as American families are dealing with a stagnant economy, skyrocketing inflation, and higher prices triggered by Democrats’ out-of-control spending.
DEMOCRATS' TAX HIKE BY THE NUMBERS:
Democrats are proposing almost $3 TRILLION in tax increases, the largest tax increase in most of our lifetimes. These crippling tax increases—particularly the corporate tax increase—will be shouldered by the middle class and small businesses, will send jobs and businesses fleeing overseas, and advantages America’s competitors:
America’s middle-class families shoulder the burden of Democrats’ corporate income tax hike from 21 percent to 26.5 percent.
Democrats are expanding the death tax to hit more small businesses and to take more from them. This trojan horse for a supercharged second death tax will force family-owned businesses to sell off assets in order to pay a massive tax bill to the IRS. Eventually, these tax changes will cost 1 million jobs over the long term.
The Biden Administration has claimed that the majority of small businesses will be exempt from his tax hikes – but the Tax Foundation has said that’s “misleading.” In fact, almost 900,000 small businesses could be hit with Democrats' limitation of the passthrough deduction based on 2018 IRS data.
The majority of the more than 30 million small businesses in the U.S. are pass-through entities in which tax obligations are passed to the owners. Pass-through businesses also account for over half of all private-sector workers. More than half of all pass-through income would be taxed at this new, higher rate.
Democrats’ economic surrender makes it better to be a foreign company or worker than it is to be an American one.
Democrats increase our corporate taxes higher than Communist China with a combined state-federal rate of 30.9%
American companies would pay this higher global minimum tax for operating abroad while also paying Democrats' higher corporate rate for operating at home—making America even less competitive and driving jobs, manufacturing, research, and investment overseas.
The Republican Tax Cuts and Jobs Act stopped the Obama-Biden signature trend of losing jobs and headquarters overseas by making America’s corporate tax rate competitive with the rest of the world. The Democrats’ tax increases will reverse that success.
Democrats are providing special tax breaks for the wealthy.
For example, these tax breaks would be given to a family earning $800,000 in income in 2022:
$11,100 tuition savings – more financial aid so high-cost universities can avoid endowment tax
$12,500 tax credit – Tesla model 3 for college freshman ($49,990 MSRP)
$12,500 tax credit – Tesla Model Y for parents ($60,990 MSRP)
$1,350 tax credit – “home energy audit,” designer doors and windows
$18,000 tax credit – hydrogen fuel cell system for home ($60,000 cost)
$10,000 tax credit – geothermal heat system for a second home ($30,000 cost)
The House Democrats' proposal provides $80 BILLION over the next ten years for the Internal Revenue Service to hire 87,000 new agents.
It's simple: These crippling tax increases—particularly the corporate tax increase—will be shouldered by the middle class and small businesses, sending jobs and businesses fleeing overseas, and giving an advantage to America’s competitors.