Crippling Tax Hikes in Democrats’ Reconciliation Bill
Nov. 18, 2021 - Blog - Press Releases - Select Revenue Measures - Talking Points - Worker and Family Support
Here’s a round-up of the tax increases in Democrats’ reconciliation bill.
Minimum tax on U.S. companies harms American consumers and workers
* This tax on anything “Made in America" would ensure that more of the everyday things we use are made in China and delivered on container ships.
* Democrats’ plan would also punish businesses that specifically suffered during the pandemic.
Unvetted stock buybacks tax will reduce retirement security for seniors
* Creates a third layer of tax on American companies-harming seniors and other savers.
* Democrats punish companies for returning value to retirees, 401(k) plans, or pension plans with a punitive tax.
International tax increases that make it better to be a foreign company or worker
* Democrats’ global tax plan offers foreign countries a sweetheart deal: American companies will pay a global minimum tax rate many points higher than the 15 percent rate the Biden Administration will allow for other countries.
* This economic surrender will make Americans less competitive and will drive manufacturing, research, and investment overseas.
Punish success with new surtax on entrepreneurs and investors
* This surtax undermines America’s successful investment infrastructure that rewards investment here in the U.S. - shifting investment decisions to Washington from individuals and local communities.
* The result will be fewer jobs, lower wages, and less growth.
Over $400 billion in small business tax hikes
* Millions of Main Street job creators will be left shouldering the burden of Democrats’ small business tax hike.
* The majority of the more than 30 million small businesses in the U.S. are pass-through entities like LLCs or S Corps - all of which are directly in the crosshairs of these tax increases.
‘Toddler Tax’ on working families
* Democrats’ new child care entitlement plan in the $4 trillion “reconciliation" bill could raise child care costs by $13,000 a year for middle class families making $65,000 or more depending on the state.
* Already struggling with the highest price increases in 40 years, working families can’t afford a new ‘Toddler Tax’ that makes child care more expensive.
