Violating Biden’s Pledge By Increasing Taxes On Middle-Income Americans
The Build Back Better legislation clearly breaks President Biden’s promise not to increase taxes on those making less than $400,000. According to the Congressional Joint Committee on Taxation (JCT), 12% to 25% of people making between $50,000 and $100,000 will see a tax increase in 2023.
Huge Tax Cuts For The Rich
Despite President Biden’s rhetoric about making the rich “pay their fair share,” his tax bill would give people making between $500,000 and $1 million an average tax cut of $6,140. According to the JCT, 86.7% percent of Americans making over $500,000 get a tax cut in 2022. That means the current “Build Back Better” legislation gives a far bigger tax cut to the top 1% than anyone else.
Taxing American Manufactures And Job Creators At The Worst Possible Time
The bill includes new taxes on American companies and largest employers just as our country is emerging from the economic struggles of the pandemic. According to the White House, the bill will punish American companies with $350 billion in new income tax increases.
Small Business Tax Increases
Under the new legislation, the U.S. would have the highest top individual tax rate in the developed world. This means that millions of small businesses in the United States that pay taxes through their individual taxes could be subject to the highest taxes in the world at 57.4%. In total, the bill includes $420 billion in tax increases on “pass-through” firms which are primarily small businesses.
Making American Companies Less Competitive Overseas
In addition to taxing American company’s domestic income, the bill will increase taxes on U.S. businesses when they compete overseas. Under the new law, American companies would face a 15% tax on income made selling products overseas on top of what they already owe to foreign countries where the sale is made. This tax hike will reduce our ability to compete around the world and could destroy up to one million jobs here at home according to the National Association of Manufacturers.
Helping The Chinese
The bill increases taxes on U.S. companies and hurts our competitiveness while doing nothing to address economic rivals like China. Even worse, the green climate subsidies for batteries in the bill will send American money directly to China because 80% of the world’s materials for advanced batteries come from China. In fact, of the 136 lithium-ion battery plants currently under construction, 75% are in China.
Reducing The Value Of Retirement Accounts
Biden’s legislation would increase taxes on stock purchases by $125 billion, according to the White House. Taxing stock purchases would reduce incentives to invest and ultimately decrease the value of investment-based retirement plans like the $4.8 trillion currently in 401(k) plans in the U.S.
Making Inflation Worse
The bill would increase spending by over $2.1 trillion. Congress has already passed Biden bills of $1.2 trillion and $1.8 trillion this year. If this latest bill is signed into law that would mean Congress will have passed $5.1 trillion in spending – more than the economies of Canada, Mexico and Brazil combined – in one year. As Federal Reserve Chairman Powell has pointed out, increased spending results in higher prices, pushing inflation to the highest level in 31 years.
Coalition to Protect American Workers