Can you remember the last time a Democrat came out with a new tax policy that wasn’t designed to shrink your wallet? Even when they go out of their way to tell middle-class taxpayers that there is nothing inside the bill that will raise their taxes, the middle class still gets screwed.
Like when Joe Biden said your taxes will not go up if you earn less than $400,000 a year, but that was a lie. Married couples filing jointly could both earn under the amount for married couples, but together they go over it and get hit with the higher tax rate.
Another example is when Democrats came out with a plan to increase the capital gains tax for the wealthy in the stock market, they were too stupid to realize that this would cause a lot of wealthy people to get out of stocks by selling their shares. Millions of middle-class workers have the same stocks as the wealthy in their 401k plans and they will be hurt when the prices of stocks go down because wealthy people en masse sell their shares. So the only good that came out of it was for the Democrats in government. They got to steal more money that they had nothing to do with earning and they were able to gaslight Americans into thinking they stuck it to the rich.
Joe Biden has proposed a new tax plan that was analyzed recently and raises a number of concerns because of the impact it will have on our economy right now and in the future.
On Wednesday, the American Enterprise Institute issued a report of an analysis of Biden’s proposed corporate tax increases, charging that it will reduce incentives to invest in the US for years into the future.
“Corporate tax policies vary significantly among developed countries,” said Kyle Pomerleau, a tax expert at AEI. “In addition to differences in statutory corporate income tax rates, there are significant differences in corporate tax bases. Some countries provide tax benefits for certain types of assets and income and place low burdens on corporate income and investment. Other countries provide smaller specific benefits for certain types of income and activity and place higher tax burdens on corporate investment.”
People who have been infected with the liberal pathogen will think it’s great that corporations are finally going to pay their fair share. Without getting into the fact that IRS numbers show that the top wage earners pay the overwhelming amount of the federal tax burden already, what liberal don’t realize is when the government comes out with a policy that forces them to put their money somewhere else instead of investing in a business, they are not going to be harmed. Rich people know how to make money. They can put their money in tax-free municipal bonds like the Kennedys and other rich Democrats do to avoid paying their fair share until the stupid policy that made them move their wealth around goes away. Meanwhile, middle-class and the working poor get harmed because there will be no jobs when there is no investment by rich people. I don’t know about you but I never got a job from a poor guy.
The report notes that when including corporate tax increases in the $3.5 trillion reconciliation bill the Democrats first proposed, it would make the United States less competitive on the world stage and our economic growth will be harmed as well.
“Current proposals to reform U.S. corporate taxation would increase the statutory and effective tax rates to well above OECD averages,” the report said. “The Biden proposal, which would raise the federal corporate tax rate to 28 percent, would increase the combined statutory corporate income tax rate to 32.3 percent, which would be the second highest in the OECD. The METR and AETR on new investment would also become the second highest in the OECD.”
The report said that a similar proposal by House Democrats would make the US one of the top corporate tax rates among the Organisation for Economic Cooperation and Development out of thirty-eight other countries.
“The House proposal, which was approved by the House Ways and Means Committee on September 15, 2021, would increase the corporate tax rate to 26.5 percent. Under this proposal, the combined US statutory corporate income tax rate would be 30.9 percent, the third highest in the OECD,” the report said. “The METR on corporate investment would rise to 22.4 percent, which would be the third highest in the OECD, and the AETR would rise to 28 percent, which would be the second highest in the OECD”
Democrats always think that wealthy people are just going to follow their tax policies like good little big government soldiers and let themselves be screwed over. It doesn’t happen. Ever. What happens is rich people can afford the tax lawyers who come up with ways to invest their money elsewhere. Middle-class people and those who own small businesses don’t have access to tax attorneys of the rich and they get soaked.
This tax bill will make corporate investors wary when looking where to invest their money.
“Proposals that raise the statutory corporate tax rate and increase the tax burden on corporate investment will increase the incentive to shift profits and high-return assets into low-tax jurisdictions and reduce the incentive to invest in the United States,” Pomerleau said.