Democrats are once again considering crippling tax hikes, which will fall on American families making less than $400,000 a year and Main Street businesses.
In fact, both the non-partisan Joint Committee on Taxation and Left-leaning Tax Policy Center found that Democrats’ tax hikes will be borne by lower- and middle-income taxpayers — the very people already suffering the most under President Biden’s high inflation tax.
As the Wall Street Journal reports:
“Raising taxes enough to more than offset the bill’s spending would reduce the budget deficit and fight inflation, he said, addressing concerns that led him to oppose the House-passed package last year.
“‘Why can’t we just get a good solid tax plan that works?’ Mr. Manchin said to The Wall Street Journal last week. ‘That’s the first thing to do.’”
But the reality is, under the Tax Cuts and Jobs Act (TCJA), federal revenue for the past year hit record high levels from individuals and corporations.
Bottom Line: Coming out of a pandemic and facing 40-year high inflation, the last thing Americans need are tax hikes.
The burden of Democrats’ spending and tax hikes falls on American families and small businesses.
- The non-partisan Joint Committee on Taxation (JCT) found that workers will shoulder the burden of Democrats’ tax hikes. Over the long term, 66.3 percent of a corporate tax increase would be borne by lower- and middle-income taxpayers.
- It’s not just the JCT – analysis from the Left-leaning Tax Policy Center finds that President Biden’s overall tax plan will raise taxes on 75 percent of middle-class families next year, rising to 95 percent of middle-class families over the long term.
Bidenflation is already crushing America’s middle class and Main Street.
- The Congressional Budget Office (CBO) and the Penn Wharton Budget Model have also estimated that President Biden’s inflation tax costs the typical family $5,000 a year, and hits the middle class and those just starting their career or families the hardest.
- With more than 60 percent of Main Street businesses reporting they were forced to raise their prices to keep up with inflation, which has reached the highest rate since 1982, economists are warning the U.S. is at risk of a wage-price spiral.
- For working Americans, in one year, Democrats wiped out three years of wage gains through inflation.