Recently, in the House Ways and Means Committee, Democrats passed a sweeping tax hike to be included in their $3.5 trillion reckless tax and spending spree. Their solution to pay for their liberal wish list and big government socialism – tax businesses and corporations, and the rich, “who aren’t paying their fair share”.
Specifically, it includes an increase of the corporate tax rate from 21 percent to 26.5 percent, which is higher than communist China’s 25 percent. It calls for a hike in the top income tax rate from 37 percent to 39.7 percent. They also propose a change to the death tax and plan to raise the capital gains tax rate from 20 percent to 25 percent.
The Democrats will frame this proposal as a win for the lower and middle class, and suggest it’s only a tax increase for the rich and big corporations. But the reality is that this tax increase will unequivocally impact every American, if not today, then tomorrow.
How? Well, it’s pretty simple.
Raising taxes on corporations and businesses will only cause companies to create a way to cover this new cost. This can be done by cutting departments, lowering wages, not hiring workers, and raising product prices.
For example, in my home state of Kentucky, corporate tax hikes tend to drive utility rates up, while corporate tax cuts drive utility rates down. In 2017, when the corporate tax rate was cut from 35 percent to 21 percent, electric, gas, and water companies all across Kentucky saw savings. These savings not only helped the companies, but also the customers who saw rate reductions or bill credits.
All Americans will see the repercussions of increased taxes, and you’d be crazy to think these corporations and businesses will just absorb the extra costs. The extra costs will be covered by consumers who will be paying an increased electric, water, or gas bill.
Progressives claim the “rich” aren’t paying their fair share but the fact is the top 1 percent of earners pay over 40 percent, and the top 10 percent pay over 70 percent of income taxes.
The left wants you to think their tax hikes target the fat cat sitting on a boat and eating a fancy dinner…but the truth is, increased taxes will affect everyone and everything.
They’ve even proposed a 20 cent per pound tax on plastic which will increase costs for companies and manufacturers that use plastic to make and package products. If you think about it, that’s nearly everything under the sun – the plastic bag that bread is packaged in, the packaging on your kid’s favorite toy and probably the toy itself, packaging for most household items like toilet paper, the list could go on and on. But like every tax increase in this bill, it won’t just be absorbed by the company or manufacturer, it will be covered by you, the consumer at the store.
Democrats plan on taxing any and everything as they see fit to enact their radical agenda.
Don’t let them fool you. On the surface level this plan targets big businesses and corporations, and the rich, but in economic reality it’s also targeting working Americans, small business owners, and prices for all at stores.
A tax increase for one, is a tax increase for all.