Finance Republicans: Americans Can’t Afford This Tax-and-Spend Bill
Legislation will cause higher tax burden, fewer jobs, lower wages and continued economic stagnation
Washington, D.C.--Against a backdrop of high inflation, shrinking GDP and stagflation, Democrats are pushing forward with a bill that does nothing to address inflation; will not grow the economy or ease supply chain pressures; but will increase the tax burden on millions of Americans. U.S. Senate Finance Committee Republicans, led by Ranking Member Mike Crapo (R-Idaho), held a news conference to emphasize why the latest tax-and-spend bill will do nothing to help Americans who are already experiencing the consequences of Democrats’ reckless economic policies.
To watch the news conference in its entirety, click here.
“The bottom line—this tax is dangerous for America.”
The Administration has been very careful to say ‘we aren’t raising the tax rates of anyone under $400,000.’ But everyone in America knows that when taxes are charged, people end up carrying the burden of those taxes. That burden comes because the incidence of the corporate tax is passed on to workers; to capital, or those who own the stock and people trying to invest in their retirement, in a pension plan, or 401K; and in price increases in the economy. . . . That is the reality, regardless of the games that are being played in terms of describing who the taxes fall on. . . . The numbers show, very graphically, where the burden of this tax falls, contrary to the argument that is this just a tax on tax-cheats. The bottom line—this tax is dangerous for America.
“They will absolutely devastate American manufacturing.”
Apparently the best economy of our lifetime wasn’t a very good thing; apparently narrowing the wage gap between higher-income and lower-income people wasn’t a very good thing. I have yet to hear a Democrat tell us what was wrong with the economy of 2019 that was firing on all cylinders, where wages were growing faster than inflation, not the other way around like we have today. Yet they have decided to go after the centerpiece of the tax reform that made that possible. They will absolutely devastate American manufacturing and in the process, impose this tax increase on people of ordinary and modest means. It’s a very bad plan.
“This puts us at a competitive disadvantage with countries around the world.”
We just spent a few hundred billion dollars on research and development to help who? Manufacturers. To help ensure that America can be competitive in a global economy. So on the one hand, we’re saying to manufacturers, ‘We want to help you become more competitive.’ On the other hand, we’re saying ‘We’re going to take away one of the benefits that encourages investment and economic growth.’ By the way, we’re not alone in this—all of the other developed countries in the world also offer some kind of bonus depreciation. In fact, of the top developed countries in the world, we’re below the average already—we offer less than they do. So this puts us at a competitive disadvantage with countries around the world as well. It’s just the wrong thing to do at the wrong time.
“Completely inconsistent in so many areas of what the Democrats have said that they want us to accomplish this Congress.”
Think of the inconsistency of Democrats always complaining about the wealth and the lack of taxation on the part of the very wealthy. And then you’re giving big bonuses to people that can afford to buy $80,000 [electric] cars, which is enhancing the pocketbooks of the one percent that they’re complaining about aren’t paying their ‘fair share’ of taxes. So, this is not only bad policy, but it’s completely inconsistent in so many areas of what the Democrats have said that they want us to accomplish this Congress.
“We ought to be doing things to lower inflation and lower its impact on American families. This is not it.”
This legislation ignores the main concerns of the American people—the crisis at the border, crushing inflation that people are living with, crime in the cities…That’s why two-thirds of the American people say this Administration and the Democrats are focused on the wrong thing. We ought to be doing things to lower inflation and lower its impact on American families. This is not it.
“$80 billion to allow the IRS to harass businesses across this country.”
The Democrats’ bill does increase, in a significant way, funding for the IRS: $80 billion for 87,000 new employees. Think about that—literally doubles the size of the IRS. Why? Not to improve taxpayer services, only four percent goes toward improving taxpayer service. This goes to allow the IRS to harass businesses across this country. Also proven by the analysis that has been done, it hits disproportionately hard on people and businesses that are making under $400,000 a year.
“Basic economics—when you tax something more, the price goes up.”
At the exact moment when we have supply chain issues, when we have more and more challenges with our manufacturing, and when we’re trying to incentivize more manufacturing to the United States, they’re raising taxes on manufacturing in the United States. So, it doesn’t lower inflation, it doesn’t lower the deficit, it does punish manufacturing, unless you’re doing green energy. If you’re doing green energy, you’re protected. Basic economics says, when you tax something more, the price of it is going to go up. They’re taxing manufacturing—especially American manufacturing—more, the prices will go up which will increase inflation, that’s basic.
“This is an anti-Indiana bill.”
The median household income in the state of Indiana is $58,000. Under this plan, families in that income range in my state will see their taxes increase by $2 billion next year alone. I'm here for those families. I'm speaking on behalf of those families. They're upset. They find this absolutely absurd. We are the most manufacturing intensive state in the country. As we've already heard this legislation will slam our manufacturers. This is an anti-Indiana bill.
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