The Big Picture
The Democrats’ $3.5 trillion socialist spending spree is full of far-left priorities such as “free” community college, universal pre-K, and “environmental justice” initiatives. While free college and Medicare expansion sound generous, they come at the expense of American taxpayers. The bill is over 2,000 pages long, which is why we are going to outline important details from the bill that could affect you.
One such provision is the increase in the corporate tax rate, which will have a devastating impact on the American economy. Higher tax rates and lower GNP results will pack a punch to the American people not seen since the Great Depression.
- The Democrats’ disastrous reconciliation package will raise the corporate tax rate from 21 percent to 28 percent.
- This substantially higher rate incentivizes businesses to move overseas for lower tax rates and causes job loss in the United States. On top of the higher corporate tax rate, a 15 percent minimum tax on worldwide pre-tax income would be imposed on companies with more than $200 billion.
- These higher tax rates will result in lower wages for employees and burden shareholders with much higher taxes, ultimately slowing investment, innovation, and growth.
- American companies have been moving overseas to lower their tax burden, and this would just give them even more incentive–ultimately taking away jobs and slowing our economy.
Why it matters
Gross Domestic Product (GDP) measures the value of goods and services produced in a country’s borders; in short, it is a measure of American income, and GNP is the measure of those same goods produced by Americans but both domestic and abroad. The bill’s individual and corporate tax increases would decrease GNP by 1 percent, reduce GDP by 0.9 percent, and cut 165,000 jobs in the United States.
The Democrats’ $3.5 trillion partisan reconciliation package is full of higher taxes to fund radical left-wing priorities. Raising taxes to help pay for Green New Deal “environmental justice” initiatives like the Civilian Climate Corps is just another example of how out-of-touch Washington politicians are. At the end of the day, this $3.5 trillion boondoggle raises taxes, destroys jobs, and makes it unprofitable for businesses to stay in the United States.