As America spirals into a recession, domestic manufacturers will soon face a higher cost of doing business as a result of Washington Democrats’ tax and spending plan, reports the Wall Street Journal. Analysis released last week from the Joint Committee on Taxation (JCT) shows that domestic manufacturers would bear roughly 50 percent of the tax burden from a 15 percent minimum tax on book income, as proposed in the latest version of the Democrats’ Build Back Broke agenda.
“…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.”
Ways and Means Republicans outlined just how the tried and failed “book tax” would disproportionately impact workers, wages and manufacturing. Washington Democrats’ tax on manufacturers will not only throw more fuel on the inflation fire, driving up prices and worsening the supply chain crisis, but it will also raise taxes on middle-class families. Americans making less than the $400,000 per year threshold President Biden pretends to want to protect will bear the brunt of more than half of the tax increases, according to JCT.
Perhaps Washington Democrats should take their own advice and not raise taxes during a recession:
- “I don’t think during a time of recession you mess with any of the taxes or increase any taxes.” – Senator Joe Manchin (10/18/10)
- “If we’re in a recession…I don’t think Senator Obama or anyone else is going to raise any taxes. You don’t want to take money out of the economy when the economy is shrinking.” – Majority Leader Chuck Schumer (10/27/08)
Key Background on Democrats’ Tax & Spending Plan
- Sen. Manchin’s Favorite Budget Model: “Inflation Reduction Act” Will Increase Inflation
- JCT Confirms: U.S. Manufacturers Would be Hardest Hit by Democrats’ Book Minimum Tax
- JCT: Democrats’ Proposals Increase Taxes on Millions of Americans
- Democrats In Their Own Words: Don’t Raise Taxes During a Recession
- Flashback – December 2021: Congressional Budget Office Confirms Build Back Better Costs $4.9 Trillion
The American Economy is in Recession under Joe Biden
- When Biden took office, CBO projected real GDP would grow 2.9 percent in the first quarter of this year. Real GDP fell by 1.6 percent.
- When Biden took office, CBO projected real GDP would grow 2.2 percent in the second quarter of this year. Real GDP fell by 0.9 percent.
- Over the last 75 years, every single time the economy has experienced consecutive quarters of negative growth, America has been in a recession.
- During the 2007-2009 recession, 9 million Americans lost their jobs and 10 million people fell into poverty, including 3 million children.
- The Federal Reserve just raised interest rates by 75 basis points – the fourth such rate increase since March – to combat the President’s inflation crisis. In total, the federal funds rate has risen by 2.25 percent, the fastest cumulative rate hike in 40 years.
- The interest rate on a 30-year fixed mortgage has doubled since Biden took office.