Democrats see political winner in tax fight

0
9


As President BidenJoe BidenBiden Calls On California Occupational Safety Leader To Lead OSHA Romney Explodes End To Filibuster US SCOTUS Expansion Reflects Cash Payments To Help Curb Migration READ MORE moving forward with a mammoth plan to bolster the country’s infrastructure, Democrats are betting they’ll get a political boost from an accompanying proposal: tax hikes designed to cover massive costs.
Biden on Wednesday introduced a series of tax reforms aimed at raising $ 2.5 trillion – much of it from large corporations – to cover new infrastructure spending. The proposal was quickly roasted by Republicans, who have long portrayed Democrats as the party of higher taxes and now warn that Biden’s plan would hurt small businesses and kill American jobs.

Yet national polls have consistently found that tax hikes on businesses and other wealthy taxpayers enjoy strong support among a wide range of voters, including independents. And some Democrats are practically drooling at the prospect of bringing this debate to the national stage to underscore the GOP’s resistance to a popular concept.

“If they fight the infrastructure bill to ask companies to pay more taxes, it is a total loser,” said the representative. John YarmuthJohn Allen Yarmuth McConnell hits out at Kentucky Democrat for backing crackdown on filibuster Democrats vow to go ‘bold’ – with or without GOP Democratic majority shrinking, but finds unity MORE (D-Ky.), Chairman of the Budget Committee, said this week in a telephone interview.

“It’s just kind of an absurd argument, and I think it’s an indication of the vulnerability of Republicans on this issue,” he added. “The problem arises perfectly for those, like us, who promote large investments in infrastructure and tell big companies: ‘Since your businesses depend on infrastructure, you can do more to pay for them.’ “

The idea is hardly new. Democrats have sought for decades to close tax evasion loopholes enjoyed by businesses and other wealthy taxpayers, largely to no avail. And Republicans in 2017 were able to extend those benefits under the old President TrumpDonald Trump Romney detonates end of filibuster, SCOTUS McConnell expansion, GOP slams Biden decree on SCOTUS US raises concerns over Iran’s seriousness in nuclear talks READ MOREthe tax overhaul, which included a reduction in the corporate rate from 35 to 21 percent.

But after a year of turmoil caused by the coronavirus crisis – when stocks soared but millions of low-income workers lost their jobs – Democrats believe the uneven economic impact of the pandemic has shifted enough public opinion in their favor to turn the controversial tax hikes into a political advantage.

Indeed, a new Morning Consult / Politico survey found that 54% of voters support sweeping infrastructure improvements funded by tax hikes, including 73% Democrats and 52% independents.

“When the biggest companies evade taxes or pay an average net rate of 7 or 8%, small businesses and individuals have to make up the difference,” said Rep. And KildeeDaniel (Dan) Timothy Kildee Lawmakers say manufacturers are better placed to handle future pandemics The Hill’s Morning Report – Featured by Facebook – Biden hits the road, touts COVID-19 relief law Democratic majority shrinking, but finds l ‘PLUS unit (D-Mich.), A prominent member of the Ways and Means Committee on Tax Drafting, told The Hill. “So I think that, even if it is about remuneration, it is also a question of tax fairness.”

As ammunition, Democrats point to a recent report by the Institute on Taxation and Economic Policy, a progressive think tank, which found that 55 of the nation’s largest companies – including Nike, FedEx and Salesforce – do have paid no federal taxes in 2020 despite huge pre-tax benefits. In some cases, companies have received a substantial federal rebate.

The report recalled last year’s revelation that Trump, a self-proclaimed billionaire, paid just $ 750 in federal income tax in 2016 and 2017. Both reports infuriated Democrats who pledge to create a fairer system – and almost daring Republicans. to defend tax loopholes that favor the rich.

“The highways are not free. And independent businesses – like the 55 big profitable companies that paid no federal income taxes in 2020 – should pay for the infrastructure and other services they depend on, ”said Rep. Lloyd DoggettLloyd Alton Doggett Increases Pressure on Biden to Support Vaccine Patent Waiver COVID House Passes Bills Providing Citizenship Path for Dreamers, Farmworker House Republican Attends Hearing While Driving Car MORE (D-Texas), another senior member of the Ways and Means panel, said in an email.

Unveiled on Wednesday, Biden’s tax plan includes a series of reforms designed to force large corporations and corporations to contribute a larger share of profits to the federal government. It does this largely by increasing the corporate tax rate from 21 to 28 percent; prohibit companies from transferring their profits to tax havens abroad; and the creation of a new 15 percent minimum tax on large corporations that report profits to investors but no liability to the IRS.

Secretary of the Treasury Janet YellenJanet Louise Yellen Five takeaways from Biden’s first budget proposal Biden’s defense budget criticized by Republicans, progressives alike Biden proposes $ 0.2 billion increase in IRS budget PLUS informed House Democrats on Tuesday of the proposal. And speaker Nancy PelosiNancy Pelosi Growing threat of Chinese law Pelosi planned to retire until Trump wins election: Biden report: “Prince Philip gladly devoted himself to the British people” READ MORE (D-Calif.) Said Thursday that Democrats hoped to get the entire package – infrastructure and tax arrangements alike – through Congress and Biden’s office by August.

The president is open to policy suggestions from lawmakers on both sides, Pelosi said. “But it can’t be too small,” she added, “because what we’re talking about now has to be transformative and it has to be big.

Democratic leaders seek a delicate balance. As party liberals back massive new infrastructure spending – even pushing Biden to surpass his $ 2 trillion proposal – party moderates are wary of both the size of the package and the effects on deficit spending.

“Does it really have to be a $ 2 trillion package right now?” I don’t think we should admit that, ”an aide to a centrist Democrat said in the House. “At the very least, we should try to pay as much as possible.”

They can afford few defections.

Pelosi has only a slim majority in the House, made even thinner by the recent death of Rep. Alcee HastingsAlcee (Judge) Lamar Hastings The Hill’s Morning Report – Biden increases vaccine eligibility amid race to life or death Biden mourns the passing of Rep. Alcee Hastings Pelosi mourns Hastings as’ champion of the most vulnerable in our country »FIND OUT MORE (D-Fla.). And the division is equal to 50-50 in the Senate, where the Senator. Joe ManchinJoe ManchinRomney detonates end of filibuster and SCOTUS expansion Five takeaways from Biden’s first budget proposal, Parkland, parent presses Manchin on gun reform: “You represent the nation ” MORE, a moderate Democrat from West Virginia, is already wielding his outsized influence by opposing Biden’s plan to raise the corporate rate to 28%.

These internal frictions have not been overlooked by Republicans, who are fighting to make the tax package as uncomfortable as possible for centrist Democrats in difficult battlefield districts.

With that in mind, Republicans this week point out another report, sponsored by the National Manufacturers Association, predicting that an increase in the business rate to 28% – combined with the elimination of several other business benefits – would cost the business owner. country 1 million. jobs in just two years. And the Republicans’ campaign arm surged, launching a massive email campaign linking vulnerable Democrats across the country to the threat of increased unemployment sparked by Biden’s proposal.

“No president has ever raised corporate taxes to rebuild an economy,” Rep. Kevin BradyKevin Patrick Brady The Hill’s Morning Report – Biden May Find No GOP Support For Jobs Plan GOP Seeks New Line of Attack Against Biden’s Economic Plans Lawmakers Call on IRS to Extend Filing Deadline (Texas), senior Republican on the Ways and Means Committee, told CNBC this week. “At the end of the day, we’re going to see slower hires, [and] we will see less investment in the United States ”

Democrats remain fearless. Infrastructure was just one of the three named political priorities they championed during the 2018 election campaign, when they took control of the House. And after COVID-19 relief, it remains the national priority for Biden, who is already using the bully chair in an effort to sell his plan to the general public.

If the early debate is any indication, Democrats’ rhetoric will lean heavily on the concept of “fairness.”

“You have Amazon – all of which relies on adequate infrastructure – and they paid 1.2% last year and zero [percent] the two years before that. And they made $ 30 billion, ”Yarmuth said.

“It’s not fair in nobody’s book.”

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = “https://connect.facebook.net/en_US/sdk.js#xfbml=1&appId=566538590082898&version=v2.9”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

LEAVE A REPLY

Please enter your comment!
Please enter your name here