Businesses and Republicans are sounding the alarm on Biden taxes | national
(The Center Square) – As President Joe Biden promotes his multi-trillion dollar proposed federal spending, Republicans and small business are sounding the alarm bells, arguing that the taxes needed to pay for these spending plans are a threat to the economy.
The House Ways and Means Committee met on Thursday to discuss infrastructure development and in particular the impact of proposed tax increases to pay for it. Leading committee member Kevin Brady, R-Texas, argued that only 7% of Biden’s proposed infrastructure bill goes to infrastructure and that higher taxes would encourage employers to accept jobs abroad.
“As bad as the wasteful spending is, worse still, it is plagued by crippling tax increases that sabotage the recovery of US jobs, hurt working families and Main Street businesses, and create jobs in the United States. United States abroad, ”Brady said. “We cannot finance infrastructure on the backs of American workers.”
These arguments will likely remain key Republican talking points as Biden’s infrastructure bill comes under closer scrutiny in Congress. Biden came up with two major spending plans, the US Plan for Families and the US Plan for Jobs, his infrastructure bill of around $ 2 trillion.
The president proposed funding his infrastructure program by increasing the corporate tax rate from 21% to 28%, raising taxes on those who earn more than $ 400,000 a year, and increasing the corporate tax rate. capital gains for those who earn more than a million dollars a year. These proposed taxes would go into effect in 2022, according to Biden’s plan.
Small businesses have also expressed concern that Biden’s tax law will hit them hard, despite the White House message saying the tax hikes will only affect the wealthiest Americans.
“Biden says his spending plan forces big business to pay their ‘fair share’,” the Americans for tax reform said in a statement. “However, the plan will raise taxes for many small corporate businesses.”
According to ATR, around 16% of small employers are classified as c-corporations.
“Biden’s corporate tax rate hike from 21% to 28% targets one million small businesses across the country organized as corporations,” the group said.
These concerns come amid federal data showing that a post-COVID economic recovery is uncertain. Despite optimism that widespread immunizations would lead to a rapid economic rebound, federal inflation and employment data suggest otherwise.
The latest data from the Bureau of Labor Statistics shows that federal unemployment climbed to 6.1% in April after the economy added just 266,000 new jobs, a far cry from the one million new jobs predicted by economists. In addition, new unemployed filers are still double what they were at the same time in 2019, before the pandemic.
Democrats argued that taxes would only hit the wealthiest Americans and would be used to help American infrastructure.
“The gradual decline in our federal infrastructure investments has resulted in an alarming number of ruined roads and bridges and an under-supply of affordable housing and community investments,” said House Ways and Means President Richard Neal , D-Mass, mentioned. “Additionally, structural inequalities within our tax code exacerbate these infrastructure deficiencies within historically marginalized communities.”
Republicans in the House and Senate, however, have dug their heels.
“President Biden’s plan to raise taxes would hit Americans at all income levels and slow the economy at a breakneck pace,” said Senate Minority Leader Mitch McConnell, R-Ky., A declared. “He won’t win a single Republican vote. We will fight against everything. “