The House’s passage of a budget resolution has given the first clues to just how Democrats plan to raise taxes by $3 trillion over the next decade.
Bloomberg News reports that progressives are “discussing a wider range of tax proposals than President Joe Biden has proposed, including levies on stock buybacks, carbon emissions and executive compensation.” Those increases would be used to pay for $3.5 trillion “in child care, education and other social programs.”
The Senate Finance Committee’s list of tax hikes they’d like to include in their $3.5 trillion tax-and-spend bonanza has leaked, and it has some real doozies. The menu includes an increase in the corporate tax, an excise tax on stock buybacks, an increase in the top individual income-tax rate, a corporate AMT, doubling the capital-gains tax and making death a realization event, phasing out the 199A exclusion, taxing UNREALIZED capital gains (“mark-to-market for billionaires”), doubling the size of the IRS, and these two gems. The full document can be found here.
Can anybody explain how taxing plastics and energy doesn’t break President Biden’s promise not to tax anyone making less than $400,000?
Democrats privately say they will be able to get away with that if they shower lower-income taxpayers with rebates for some of the higher prices they would be paying.
This is doubtful. The credibility of the Biden administration since the Afghan debacle is shot, and its reputation for transparency is in the tank. It shouldn’t be hard to convince Americans they’ll be hurt by the new taxes that could pass. The challenge will be to convince them of that before the tax hikes are voted on in Congress.