The economy is roaring, the job sector is white hot, and businesses are handing out bonuses to employees like they’re candy.
So, naturally, the Democrats want to raise your taxes.
And they’re not raising taxes to bring down the rather frightening deficit numbers. They are raising taxes so they can spend more money on government infrastructure programs.
Minority Leader Chuck Schumer said his party’s proposal would be funded by lifting the corporate tax rate from 21 percent to 25 percent and by raising the upper tax bracket back to 39.6 percent, reinstating the AMT and getting rid of the carried-interest tax loophole.
“We want to roll back the Republicans’ tax giveaways to corporations and the wealthy and invest that money instead in jobs and infrastructure,” Schumer, D-N.Y., said.
The tax cuts, passed last year by the GOP-led Congress, were implemented in February. It lowered the top tax rate for individual filers from 39.6 percent to 37 percent. The corporate tax rate was slashed from 35 percent to 21 percent.
Republicans quickly criticized the plan put forward by Democrats, arguing it would hurt the nation’s economic growth.
“If Chuck Schumer and the Senate Democrats spent more time working with Republicans on infrastructure and less time thinking of new ways to raise taxes on hard-working Americans, we would be making more progress,” said Sen. John Barrasso, R-Wyo., chairman of the Senate Committee on Environment and Public Works. “More than 90 percent of American workers have seen more money in their take-home paychecks because of the tax relief law. Now Senate Democrats want to take their hard-earned money away from them.”
Democrats are saying the tax cuts are unpopular because people say they are not creating jobs.
There is a lot to like about the stellar February jobs report. But its most impressive takeaway is that people in traditionally blue collar and white collar industries got new jobs last month.
Of the 313,000 jobs that were added last month, 92,000 were in the construction and manufacturing sectors. Another 50,000 were from retailers that were hiring.
About that rise in the top tax rate. Just who do you think will be paying it? The wealthy?
This nearly 3 percentage point increase in the top personal rate is not only a hike in the top bracket levy, but it’s also a direct tax increase on small and mid-sized businesses. The 30 million companies which are organized as sole proprietorships, partnerships, Subchapter-S corporations, and LLCs pay their business taxes on their owners’ 1040 personal tax returns. Hiking the top tax rate is a small business tax increase.
So let’s follow the Democrats’ logic here. We need to raise taxes because people don’t think the tax cuts are creating jobs and we need a trillion dollars in infrastructure spending. This, despite the fact that 313,000 jobs were created last month alone and Trump’s infrastructure plan would spend about one-fifth of what the Dems are proposing. Add to that, the Dems want to kill more jobs by hiking taxes for small businesses that create most of the jobs in this country.