Congressional Democrats have released a new tax plan, one that would have gone through if Hillary had won. The plan would reverse almost every positive change made by Donald Trump, and they’ve made it clear that they’re more interested in new spending than paying down the debt.
Thank God Trump won, or else this is the plan we’d be living with:
Increase Top Marginal Income Tax Rate
Right now the highest marginal income tax bracket pays 37% on their income taxes. Under the Democrats’ plan, this would increase to 39.6%
Increase Corporate Income Tax Rate
Trump has finally reversed the trend of the United States holding the highest corporate tax rates in the western world. But, the Democrats want to throw that progress out the window and take the corporate income tax rate from 21% to 25%. This wouldn’t make the States the priciest place to do business, but it wouldn’t make the country any more attractive because it would have similar rates to most of the rest of the developed world.
Bring Back Alternative Minimum Tax for Four Million Households
Until Trump took a look, 4 million upper middle class families were forced to calculate their income taxes using two different formulas. Whichever formula gave the highest number was the amount that the family paid. This was known as the “alternative minimum tax” (AMT).
Trump’s Tax Cut and Reform bill repealed the AMT for around 99% of the families who had used the method the year before by introducing a new, higher deduction. Democrats want to reverse the AMT deduction and go back to enforcing the two method, pay more tax.
This taxation method mostly impacted two income white collar families in New York, New Jersey and California.
Reverse Trump’s Death Tax Deduction Improvement
The Death Tax is the least popular tax, with 60-70% of people responding to polls saying it ought to be fully repealed.
Trump didn’t repeal the tax but he doubled its standard deduction from $5.5 million to $11 million, or $22 million for surviving spouses. This has been immensely helpful to families with businesses and farms. The Democrats want to completely reverse Trump’s addition.
Clinton in 2016: Higher Estate Taxes, Please!
While Hillary was still on the campaign trail, she explicitly talked about some of the measures that the Democrats now want to push into reality.
In the months before the election, she announced that she would increase the estate tax to 65% on the wealthiest Americans and that it would generate an addition $75 billion for the federal government to play with. Of course, Clinton was already reported in 2014 to have been making odd financial moves that were only worthwhile to someone who wanted to avoid having to pay estate taxes. Starting in 2010, she and Bill had moved their estate in Chappaqua to a trust which saved them hundreds of thousands in estate taxes at the time.
MSNBC Host Hit With $60k Tax Lien
In 2015, one of the holier-than-thou liberal hosts on MSNBC had apparently not been paying her taxes and was hit by the IRS for tens of thousands of dollars. Best part is the fact that she used to talk at length on her show about the importance of paying taxes because we’re all in this together.
Pelosi Votes Against Tax Cut For All, Too Busy Abusing Tax Loophole For Herself
Nancy Pelosi recently called Trump’s Tax Cut and Reform Bill “crumbs” for the working class, it was found out that Pelosi and her husband pre-paid property taxes on their $7.2 million estate in San Francisco and $4 million estate in Napa.
By pre-paying their taxes, they were able to avoid “paying their fair share” under Trump’s new higher taxes for wealthy citizens and saved herself $137,000
Even Starbucks Praising Tax Cut Savings
In January of this year, one month after Trump signed the Tax Cut and Reform Bill, even the absurd lefties at Starbucks knew good financial news was in the air.
The company announced that, because of the plan, they would now start allowing employees to earn paid sick leave and expand their parental leave benefits package. As well, the company will roll out a pay raise this April.
Meanwhile in the Real World: Steel Company Re-Opening Thanks to Trump
Earlier this month we announced that U.S. Steel was firing up a steel mill put on ice back in 2015. The CEO of US Steel went on a media circuit to praise Trump and directly attribute the re-opening of the factory in Illinois to the current administration.