Yes, Joe, Democrats Are Raising Taxes

Democrats Are Insisting To Anyone Who Will Listen That They’re ‘Not Raising Any Taxes’ Or ‘Will Not Raise Taxes On Anyone Making Less Than $400,000 A Year’

FOX NEWS’ BRET BAIER: “So in 2010, you said this: ‘I don’t think during a time of recession, you mess with any of the taxes or increase any taxes.’ This bill does that…. Technically, we’re in a recession. And technically, according to multiple different organizations, this bill does raise taxes.”
SEN. JOE MANCHIN (D-WV): “They’re wrong. It does not raise taxes, and I’ve said this before, I said all we did was closed loopholes as you heard…. So we did not raise taxes. We’ve closed loopholes. That’s all we did. I made you sure there was no tax increases in this whatsoever.” (Fox’s “Fox News Sunday,” 7/31/2022)

• MANCHIN: “So, I’m not raising any taxes.” (CBS’ “Face the Nation,” 7/31/2022)

PRESIDENT BIDEN: “This bill will not raise taxes on anyone making less than $400,000 a year. And I promise — a promise I made during the campaign and one which that I ha- — that I’ve have kept.” (President Biden, Remarks, 7/28/2022)

SENATE MAJORITY LEADER CHUCK SCHUMER (D-NY): “And through it all, we will ensure that no small business or family making under $400,000 a year will see their taxes go up…. [U]nder our plan, small business and middle class family making under $400K won’t see their taxes go up at all.” (Sen. Schumer, Remarks, 7/28/2022)

In Fact, Democrats Are Saddling Americans And Small Business Owners Who Make Less Than $400,000 With Higher Taxes

“Biden vowed never to raise taxes on any Americans making less than $400,000 annually. Yet according to the Joint Committee on Taxation, the Schumer-Manchin bill does just that. Up to $16.7 billion worth of tax increases, JCT estimates.” (Punchbowl News AM, 8/01/2022)

According to the Joint Committee on Taxation, the latest iteration of Democrats’ reckless taxing and spending bill would raise nearly $17 billion in taxes from Americans earning less than $200,000. (U.S. Senate Finance Committee Ranking Member, Press Release, 7/30/2022)

• More than half of all new tax revenue from the reckless taxing and spending bill comes from Americans earning under $500,000. (U.S. Senate Finance Committee Ranking Member, Press Release, 7/30/2022)

SEN. MIKE CRAPO (R-ID), Senate Finance Committee Ranking Member: “While Republicans’ pro-growth tax reform in 2017 reduced tax rates for all Americans in a way that increased the progressivity of the tax code and produced historic gains in job and wage growth, the Democrats’ approach to tax reform means increasing taxes on low- and middle-income Americans to fund their partisan Green New Deal. Americans are already experiencing the consequences of Democrats’ reckless economic policies. The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000.” (U.S. Senate Finance Committee Ranking Member, Press Release, 7/30/2022)

THE WALL STREET JOURNAL EDITORIAL BOARD: “One well-known economic truth is that corporations don’t really pay taxes. They are essentially tax collectors, as the corporate tax rate ultimately falls on some combination of workers, shareholders and customers. Raise the corporate tax rate, and you’re cutting wages and salaries for workers. No surprise, that’s exactly what the Joint Committee on Taxation found in its analysis of the Schumer-Manchin bill’s distributional impact. The JCT finds that average tax rates will increase for nearly every income category in 2023 under the bill. Taxes will rise by $16.7 billion in 2023 on Americans earning less than $200,000 a year. Taxpayers earning between $200,000 and $500,000 will pay $14.1 billion more. This gives the lie to Democratic claims that no one earning under $400,000 will pay more taxes under the bill, a promise Mr. Biden also made in his campaign. The reality is that the Schumer-Manchin bill is a tax increase on nearly every American.” (Editorial, “The Schumer-Manchin Tax Increase on Everyone,” The Wall Street Journal, 7/31/2022)

Democrats Are Slapping American Companies With A $300 Billion Tax Increase, Which Will Hit Manufacturers Hardest

“Manufacturers and other companies making capital investments could pay the bulk of the new corporate minimum tax in Senate Democrats’ fast-moving fiscal legislation, according to an analysis of the plan. The 15% minimum tax would take effect next year and apply to U.S.-based companies that report financial-statement profits averaging at least $1 billion over three years, according to legislation released this week that mirrors a House-passed bill from last year. The proposal, if it becomes law, would raise companies’ tax bills until they hit that minimum rate.” (“Democrats’ Corporate Tax Plan Threatens Higher Bills for Manufacturers,” The Wall Street Journal, 7/30/2022)

• “But much of the money would likely come from companies that report low tax rates now because their capital investments—in factories and machines, for example—are treated differently in tax and financial accounting. Overall, the plan would affect about 150 companies annually and raise about $313 billion over a decade, according to a report this week from the congressional Joint Committee on Taxation. Nearly half of the revenue would come from manufacturers, the committee said, using a broad definition that might include some pharmaceutical and technology companies. For accounting purposes, deductions for capital investments are spread over the life of the asset. For tax purposes, they are often accelerated, reducing current tax rates. The proposal, included in a deal that could pass the Senate as early as next week, would largely erase that difference for affected companies, raising their taxes now and deferring or denying the benefit of accelerated depreciation. An analysis from the Tax Foundation, which favors simpler tax systems with lower rates, found that the coal, automobile and utilities industries would face larger tax bills.” (“Democrats’ Corporate Tax Plan Threatens Higher Bills for Manufacturers,” The Wall Street Journal, 7/30/2022)

THE WALL STREET JOURNAL EDITORIAL BOARD: “Evidence is emerging that the new Schumer-Manchin 15% minimum tax on corporate-book income is especially harmful to U.S. manufacturing firms. An analysis by Congress’s Joint Committee on Taxation (JCT), which is hardly a nest of supply-siders, found that 49.7% of the tax would hit U.S. manufacturers. The book-income minimum tax would hit the accelerated depreciation in the tax code that lets businesses write off investment in, say, new factories. Wholesale trade (9.3%), retail trade (4.9%) and information (11.5%) companies would get off relatively easy by comparison. This new tax increase arrives only days after the Senate passed a $280 billion subsidy bill for computer-chip manufacturers in the name of keeping the U.S. globally competitive. Now Democrats want to take a chunk of that back for themselves via the minimum book tax. Subsidies for a few, tax increases for the many. So much for President Biden’s claim that he wants a renaissance in U.S. manufacturing.” (Editorial, “The Schumer-Manchin Tax Increase on Everyone,” The Wall Street Journal, 7/31/2022)

‘As A Share Of Its Income, The Coal Industry Faces The Heaviest Burden’ Of Democrats’ Tax Hike

TAX FOUNDATION: “As a share of its income, the coal industry faces the heaviest burden of the book minimum tax, facing a net tax hike of 7.2 percent of its pretax book income, followed by automobile and truck manufacturing, which faces a 5.1 percent tax hike. In dollar terms, the industries that would account for the largest book minimum tax liabilities are utilities, at $43.3 billion, followed by communication at $30.6 billion.” (“Who Gets Hit by the Book Minimum Tax?,” Tax Foundation, 11/18/2021)

The National Association Of Manufacturers Warns This Tax Increase Could Cost Over 200,000 Jobs

“The impact would be swift and devastating to manufacturers and the economy as a whole, said NAM Chief Economist Chad Moutray, who conducted his own analysis of the bill’s effects on the manufacturing sector. Including direct, indirect and induced effects, in 2023 alone the impact would include: A real GDP reduction of $68.45 billion[;] 218,108 fewer workers in the overall economy[;] A labor-income decrease of $17.11 billion[.]” (“Book Tax Would Disproportionately Burden Manufacturers,” National Association of Manufacturers, 7/29/2022)

Democrats Are Imposing $25 Billion In New Taxes On Oil, Which Will Increase Prices At The Pump Even As Gas Still Costs Over $2 Per Gallon More Than When President Biden Took Office

“The climate and tax spending deal announced last week by Senate Majority Leader Chuck Schumer and Senator Joe Manchin could cost the oil industry $25 billion in new taxes. The legislation, which may get a Senate vote as soon as next week, would reinstate and increase a long-lapsed tax on crude and imported petroleum products to 16.4 cents per gallon, according to a summary of the plan released Sunday by the Senate’s tax-writing committee. … The Superfund tax, which previously stood at 9.7 cents per barrel until it lapsed at the end of 1995, is paid by refiners and other importers to help fund the clean-up of hazardous waste sites. In addition to increasing the tax, the Senate proposal would index the fee to inflation.” (“Manchin Spending Deal Includes Billions in Taxes on Oil Sector,” Bloomberg, 7/31/2022)

As of July 25^th, the Energy Information Administration recorded retail gasoline prices at $4.559 per gallon, compared with $2.334 per gallon in January 2021. (U.S. Energy Information Administration, Accessed 8/01/2022)

And Democrats Are Also Levying A New Tax On Natural Gas, ‘Creating A Burden That Will Fall Most Heavily On Lower-Income Americans’

“The 725-page bill released last week would also impose other costs for the oil and gas industry. It places a new first-time fee on methane emissions rising to as much as $1,500 a ton and increases the royalty rate companies pay to the government for oil and gas produced on federal land.” (“Manchin Spending Deal Includes Billions in Taxes on Oil Sector,” Bloomberg, 7/31/2022)

• AMERICANS FOR TAX REFORM: “The legislation would impose a regressive tax on oil and gas development based upon emission levels of methane during production, leading to higher energy bills for consumers and higher costs of everyday products.” (Mike Palicz, “5 Tax Hikes in Dem Reconciliation Bill,” Americans for Tax Reform Website, 7/28/2022)

AMERICAN GAS ASSOCIATION: “On behalf of the companies and associations that make up the natural gas supply chain and the 180 million Americans and the 5.5 million businesses that rely on natural gas, we would like to express our concerns about including a methane emissions fee or tax in budget reconciliation legislation…. New fees or taxes on energy companies will raise costs for customers, creating a burden that will fall most heavily on lower-income Americans…. [B]ased on similar proposals introduced earlier this Congress, we estimate that the fee could amount to tens of billions of dollars annually. These major new costs most likely will result in higher bills for natural gas customers, including families, small businesses, and power generators…. Any increase in low-income households’ energy costs could prove devastating.” (American Gas Association and 27 Natural gas Supply Chain Associations, Letter to Sens. Schumer and McConnell, Speaker Pelosi, and Rep. McCarthy, 9/07/2021)

• “We also estimate that the proposal could put more than 100,000 American jobs at risk…. We also anticipate that natural gas producing regions would bear a severely disproportionate economic impact—including lost jobs—as businesses across the natural gas value chain are harmed by new, government-imposed costs and inflated natural gas prices.” (American Gas Association and 27 Natural gas Supply Chain Associations, Letter to Sens. Schumer and McConnell, Speaker Pelosi, and Rep. McCarthy, 9/07/2021)

• “These outcomes are inconsistent with President Biden’s commitment to pay for reconciliation without imposing new taxes on lower-income Americans.” (American Gas Association and 27 Natural gas Supply Chain Associations, Letter to Sens. Schumer and McConnell, Speaker Pelosi, and Rep. McCarthy, 9/07/2021)