Democrats have big plans if they win congressional majorities, and those plans would mean less money in your wallet.
Americans for Tax Reform compiled numerous promises from Democrats to raise taxes as an effort to reverse many of the reductions in the 2017 tax reform legislation. Democrats are pushing a 30 percent hike in the corporate income tax and want to return small business tax rates and rates for the wealthiest individuals to 39.6 percent.
Other proposals include stiffer rates on estate taxes and on gun purchases.
Kentucky Democrat John Yarmuth would be chairman of the House Budget Committee if Democrats win a majority in the House. Last year’s tax legislation dropped the corporate tax rate from 35 percent down to 21 percent. Yarmuth would bump it back up to 27 percent.
“It makes (the rate) higher than France, higher than Germany, higher than Communist China. But add four percent because we have state and local corporate income taxes, so we’re really at 31 percent, which would make us highest in the world again,” said Americans for Tax Reform President Grover Norquist.
He says the proposed tax hikes on small businesses would be a major kick in the shins to the middle class.
“Those 28 million companies employ about 70-plus million people. These are small companies but they add up. This would be devastating to the smaller business community. I think that’s going to be one of the bulwarks for the Republicans.
“If anybody works for a small business, voting for the D’s is slitting your wrists this year,” added Norquist.
Norquist is also warning about Democrats resurrecting stiffer estate, or death, tax penalties and the Alternative Minimum Tax.
In addition, Illinois Rep. Danny Davis is proposing several tax increases involving firearm and ammunition purchases. Under his plan, federal excise taxes on most guns would effectively double. Excise taxes on ammunition would more than quadruple.
Norquist says Guam recently rescinded a $1,000 gun tax but he believes that’s what Democrats want to do.
“If you say to somebody that a gun costs a thousand dollars, you’ve just told every low-income person in the country and every middle class person in the country, ‘You’re never owning a gun. You don’t have a second amendment,'” said Norquist.
Listen to the full podcast as Norquist gets more specific on the tax plans we can expect if the Democrats run Congress next year.