Democrats are targeting American manufacturers with their new corporate minimum tax, included as part of the Manchin-Biden “Build Back Better” tax hike bill, according to new analysis by the nonpartisan Joint Committee on Taxation (JCT).
Made-in-America manufacturers will be hit with even higher tax hikes, totaling $222 billion over the next decade, with the greatest surge in taxes coming in the short term, even as they struggle with a worker shortage, inflation, and as the economy enters a recession.
The JCT estimates that 52.0 percent of the tax would be borne by the manufacturing industry, up from a previous estimate of 49.7 percent.
The cost of new tax increases in Democrats’ revived reckless tax-and-spend bill would be borne by U.S. manufacturers and land on Americans in worsened inflation.
- The analysis comes from the nonpartisan Joint Committee on Taxation (JCT) and was requested by Senate Finance Committee Republican Leader Mike Crapo (R-ID).
- Initial analysis from the Senate Finance Committee Republicans: “Democrats claim the book minimum tax is a tax loophole closer, when in reality it is a tax on U.S. manufacturers. Based on the new JCT analysis, 49.7 percent of the tax would be borne by the manufacturing industry at a time when manufacturers are already struggling with inflation, supply-chain disruptions, and an impending recession.”
Democrats’ Made-in-America tax hikes will land on American businesses and workers in slashed wages.
- Democrats claim they’re only targeting “large corporations,” with the minimum book tax, but the burden of these tax increases will be carried by working families in higher prices, fewer jobs, and lower wages.
- About 150 large companies will be caught in this tax, and many of them would actually pay some of this tax each year.
- The JCT also found that 25 percent of the cost of Democrats’ tax hikes would be paid for by workers in slashed wages.