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Crippling Tax Hikes in Democrats’ Reconciliation Bill

November 18, 2021

Here’s a round-up of the tax increases in Democrats’ reconciliation bill.

CLICK HERE for a printable version of this one-pager.

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.

CLICK HERE for a printable version of this one-pager.