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Democrats’ Job-Killing Tax Hikes Eliminate Jobs, Cut Paychecks, And Send American Businesses Overseas

April 22, 2021

Republican tax reform in 2017 created the strongest American economy in decades, with record-low unemployment and significantly higher paychecks. Democrats’ job-killing tax hikes will forfeit those gains, returning to the Obama-Biden economy that sent U.S. jobs and businesses overseas. For a PDF of this, click here.

Here’s a list of proposals in Democrats’ $2 trillion job-killing tax scam

Hike federal corporate tax rate from 21 percent to 28 percent

  • Democrats’ plan gives the United States the highest corporate taxes in the developed world—7 percentage points higher than Communist China.
  • There’s never a good time to be dead-last, and President Biden will be the first president to raise taxes during an economic recovery.
  • American workers will suffer the most—with lost jobs and lower wages—as they shoulder up to 70 percent of the corporate tax hike.

Punitive changes to the GILTI minimum tax: double the rate, impose country-by-country restrictions, and eliminate reasonable exemption for “routine” profits

  • Biden’s minimum tax takes away American jobs and acts as a stimulus program for workers in other countries.
  • Biden’s plan penalizes American companies with massive new minimum tax, while exempting their foreign competitors.
  • Republican tax reform put a stop to foreign takeovers, while Democrats’ plan will make U.S. companies easy targets for companies based in Communist China and elsewhere – even the left-leaning Tax Policy Center agrees.

Repeals the BEAT tax and gives foreign countries authority over U.S. taxes

  • BEAT already functions as an anti-abuse tax to prevent inappropriate tax planning.
  • Democrats’ plan will give other countries control over U.S. tax revenues in President Biden’s OECD negotiations.
  • Other countries will never negotiate a tax increase on themselves—but they can’t wait to see higher U.S. taxes that put American workers out of a job.

Impose a new financial statement income tax

  • Democrats’ plan punishes American companies if they invest in new manufacturing or R&D.
  • Republican tax reform created a boom in jobs, wages, and R&D – and Democrats’ tax hikes will destroy it.
  • S. companies and their workers will be subject to double taxation while Democrats exempt their foreign competitors.

Repeal the FDII incentive that keeps valuable technologies in the United States

  • Democrats’ plan discourages development of new technologies that will stay here in the United States.
  • Republican tax reform created an R&D boom – R&D spending increased by 25 percent to a new record high, creating new good-paying jobs and higher wages.
  • Republicans and Democrats alike support incentives like FDII to encourage U.S.

 Misguided new tax credits for onshoring and a tax penalty for companies that offshore jobs

  • While everyone should support more U.S. manufacturing, Democrats’ tax breaks for onshoring are made worthless by his avalanche of tax increases.
  • As with other Democrat tax hikes, the so-called “offshoring penalty” would exempt foreign companies, giving them a leg-up on American businesses.
  • Under Democrats’ misguided approach, it’s better to be a foreign company operating in America than an American company operating in America.

 Wrapping American businesses in IRS red tape 

  • Super-charging the IRS will mean more headaches for American businesses, inevitably sweeping up those who are already playing by the rules.
  • The IRS needs to do a better job of selecting tax returns for audit, so the first order of businesses should be improving IRS processes.
  • Corporations account for just 9 percent of all missing tax payments.

Repeal tax provisions for America’s #1-in-the-world energy industry

  • Tax hikes on our world-class energy producers will destroy good-paying American jobs and only increase emissions, as heavy polluters in other countries gain market share.
  • Biden has already eliminated jobs and weakened our economic strength with his attack on America’s oil and gas industry – by cancelling the Keystone XL pipeline and placing a moratorium on oil and gas leasing.
  • Raising taxes and abandoning key energy infrastructure projects will raise American families’ utility costs and the prices they face at the pump.

“Anti-inversion” regulations to avoid a mass exodus of businesses from the United States

  • Republican tax reform already stopped foreign takeovers of U.S. companies – or “inversions” – and placed a giant “open for business” sign in the middle of America.
  • President Biden knows that his tax hikes would lead to an exodus of U.S. companies and jobs, a repeat of the losses during the Obama-Biden Administration.
  • President Biden’s attempt at “anti-inversion” regulations will never match the success of Republican tax reform, which kept American businesses in America andbrought back companies sent overseas by Obama-Biden economics.

Additional tax hikes are coming for individuals and Main Street businesses

  • President Biden concludes his $2 trillion tax scam by threatening a future tax proposal with even more taxes on American families and small businesses.
  • President Biden’s pledge for “no tax increase for those making under $400,000” has been proven false over and again.
  • The reality is that no American will be spared from Democrats’ multi-trillion-dollar tax increases.