Democrats in Congress want the American people to believe that their $3.5 trillion spending spree will be paid for by making the rich “pay their fair share.” In reality, many of the wealthiest industries in the world will get huge new tax breaks under their proposal.
According to the non-partisan Joint Committee on Taxation, the current tax legislation will funnel money directly to fortune 500 companies, wealthy individuals, professional entertainers, airlines, developers and foreign manufacturers just to name a few. Below are some examples of the billions in handouts for wealthy individuals and rich companies tucked into the Democrat tax plan.
Electric Vehicle Owners & Manufacturers: The bill includes $15.5 billion to provide up to $12,500 in refundable tax credits to people who purchase electric cars. According to IRS data, these credits are predominantly claimed by high-income individuals. Recent analysis showed that more than 77% of these tax subsidies go to people who make over $100,000. (Sec. 136401)
E-Bike Producers: Democrats are creating a $1,500 tax credit to purchase electric bicycles. This subsidy will cost American taxpayers an astonishing $7.5 billion to boost the E-Bike market. (Sec. 136407)
Professional Recording Artists: The tax legislation provides a new deduction that allows recording artists to write off up to $150,000 from the taxes to offset the cost of recording music. (Sec. 138510)
Wealthy Homeowners: The bill extends the residential energy efficient property credit through 2033 and adds battery storage technology at a cost of $21 billion. Past studies have shown that more than half of this subsidy to convert homes to alternative power primarily goes to the richest 20% of Americans. (Sec. 136302)
Nuclear Power Plant Operators: The legislation creates a brand-new credit program to provide direct payments to existing nuclear power plants at a cost of $16 billion. (Sec. 136109)
Foreign Battery Makers: Tax breaks in the bill heavily subsidize lithium batteries — an industry dominated by manufacturers in China. In fact, 80% of the chemicals made for advanced batteries come from China. Of the 136 lithium ion battery plants under construction, 101 are based in China.
Commercial Airlines: America’s commercial airline companies will benefit from over $600 million in government subsidies to produce “sustainable” aviation fuel. (Sec. 136203)
Colleges and Universities: The legislation includes $4.5 billion in tax benefits for colleges and universities. In 2020, the average college in the U.S. has an endowment of $905 million and the federal government already provides $150 billion to higher education institutions every year. (Part 7)
Utility Companies: The approved tax proposal includes a huge expansion of credits given directly to energy companies that produce electricity from wind, solar, geothermal and other sources. These programs will provide over $100 billion in taxpayer benefits for electricity companies. (Sec. 136101)
Architects, Engineers and Construction Firms: The current deduction for installing energy efficient systems into non-residential buildings is $1.80 per square foot. This bill would more than double the subsidy to $5.00. The program has been a huge financial windfall for architects, engineers and construction firms who reap the tax benefits of retrofitting government buildings. (Sec. 136303)