Senate Democrats are proposing one trillion dollars in higher taxes over the next ten years including a nearly $600 billion income tax increase, a business tax increase, an increase to the death tax, and a capital gains tax increase.
These proposed tax increases would wipe out the benefits of tax reform, which include larger paychecks, salary bonuses, pay raises, increased employee retirement contributions, and utility rate cuts.
The Senate Democrat plan calls for raising the income tax rate to 39.6 percent and increasing the Alternative Minimum Tax (AMT) to pre TCJA levels, meaning millions of Americans would have to again pay this tax. According to 2015 IRS data, over 900,000 taxpayers in California and 500,000 taxpayers in New York paid the AMT prior to passage of the TCJA, which dramatically increased the threshold at which this tax applied.
Democrats also propose an $83 billion increase to the death tax. This tax increase would disproportionately fall on family-owned businesses and suppress jobs and wages. 76 percent of Americans support full, permanent repeal of the Death Tax, according to a poll by NPR.
In addition, the proposal calls for increasing the corporate tax to 25 percent. Including state corporate tax rates, this would cause the U.S. rate to rise to 29 percent, above the worldwide average rate of 23 percent and the industrial average of 24 percent.
Finally, Democrats propose a tax increase on carried interest capital gains. A carried interest capital gains tax increase would reduce investment and savings and damage economic growth at a time when the economy is beginning to grow at 3 percent or higher.
Democrats have claimed that the Tax Cuts and Jobs Act (TCJA) passed by Republicans in December was irresponsible because it would increase the deficit. Now, they are proposing to undo these tax cuts to finance more wasteful spending, proving they are not truly concerned about the deficit.
Regardless, tax reform is working. The law has resulted in 90 percent of Americans receiving more money in their paycheck and has resulted in at least four million workers receiving bonuses. Millions more have received salary increases, increased retirement benefits, and lower utility costs. The Senate Democrat tax hike proposal would wipe out these benefits.