Connect with us

Business

Dems Tax Rate Higher Than Communist China

Published

on

Dems Tax Rate Higher Than Communist China

House Democrats are proposing almost $3 trillion ($3,000,000,000,000) in tax increases including tax increases on small businesses and working families. This is the largest tax increase since 1968 compared to the size of the economy and the largest tax increase ever in nominal dollars.

Raising taxes on working families by increasing the federal corporate income tax rate from 21 percent to 26.5 percent. This tax increase will be passed along to working families in the form of higher prices, fewer jobs, and lower wages. This will give the U.S. a combined state-federal rate of 30.9 percent, higher than our foreign competitors including China, which has a 25 percent corporate tax rate, and Europe which has an average rate of 21.7 percent. The developed world average (OECD) is 23.5%.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax in the form of wages and employment. Similarly, a 2020 study by the National Bureau of Economic Research found that 31% of the corporate tax falls on consumers. 

A corporate tax increase will threaten the life savings of families by reducing the value of publicly traded stocks in brokerage accounts or in 401(k)s. Individual investors opened 10 million new brokerage accounts in 2020 and at least 53% of households own stock. In addition, 80 million to 100 million people have a 401(k), and 46.4 million households have an individual retirement account

Raising the corporate income tax rate will hit Americans with higher utility bills as the country tries to recover from the pandemic. Customers directly bear the cost of corporate income taxes imposed on utility companies. Investor-owned electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. Therefore, if Democrats raise the corporate tax rate, they will have voted to raise utility bills. [Americans for Tax Reform has compiled 300 examples of utilities passing tax savings along to customers.] 

Raising taxes on small businesses by raising the top income tax rate to 39.6 percent, limiting the 20 percent small business deduction, expanding the Obamacare net investment income tax, limiting the ability of passthroughs to deduct excess business losses, and raising the corporate tax rate.

This would likely increase taxes on several million small businesses across the country – earlier this year, the Biden administration admitted raising the top income tax rate would raise taxes on one million small businesses. This does not include the other tax increases – a study by the Chamber of Commerce found that there are 1.4 million small businesses organized as C-corporations, while almost 900,000 small businesses could be hit with the limitation of the passthrough deduction based on 2018 IRS SOI data.

Increasing the capital gains tax rate to 28.8 percent and increasing the holding period for carried interest capital gains to five years. Communist China’s capital gains tax is 20 percent.

A 16.5 percent global minimum tax. The Biden administration has been pushing a global agreement locking in high taxes and a 15 percent global minimum tax in order to “end the race to the bottom” and “make all citizens fairly share the burden of financing government.”

Increasing the death tax by cutting the exemption level in half and modifying valuation rules. This will raise taxes on family-owned businesses and farms across the country.

Retroactively raising taxes on taxpayers claiming the conservation easement deduction. It would apply this retroactively back to Notice 2017-10 released on December 23, 2016, so would impact taxpayers in tax years 2016, 2017, 2018, 2019, 2020, 2021 and for future years. If lawmakers want to make changes to the conservation easement deduction, they should do so as part of a net tax cut and prospectively, not retroactively.

A new 95 percent excise tax on medicines and socialist healthcare policies. This legislation creates a 95 percent excise tax on manufacturers and imposes an international reference pricing scheme that directly imports foreign price controls into the U.S.  

This proposal will reduce access to new, lifesaving and life-preserving medicines. According to research by the Galen Institute, the U.S. had access to 90 percent of new cures launched between 2011 and 2018, a rate far greater than comparable foreign countries. For instance, The United Kingdom had access to 60 percent of medicines, Japan had 50 percent, and Canada had just 44 percent. 

It will also threaten high-paying manufacturing jobs across the country at a time when we are just emerging from the economic wreckage from the pandemic. Pharmaceutical manufacturers invest $100 billion in the U.S. economy every year, directly supporting 800,000 jobs including jobs in every state.  

$80 billion in new IRS funding to hire 87,000 new agents. This would allow the IRS to audit and harass small businesses and American families for an additional $787 billion. It would hire enough new IRS agents to fill Nationals Park twice. 

It would help implement the Biden plan to create a new comprehensive financial account information reporting regime which would force the disclosure of any business or personal account that exceeds $600. Not only would this include the bank, loan, and investment accounts of virtually every individual and business, but it would also include third-party providers like Venmo, CashApp, and PayPal. 

New IRS funding will also be a boon to the union that represents IRS employees. This union, the National Treasury Employees Union (NTEU), shovels 97 percent of their money into Democrat campaign coffers. IRS employees also regularly perform union work on the taxpayer’s dime. In 2019, 1,421 IRS and other Treasury Department employees spent 353,820 hours of taxpayer-funded union time (TFUT), costing the federal government $17.27 million. 

Keep Reading on ATR…

Business

Elon Musk praises China, says Tesla will continue to expand investments there

Published

on

Elon Musk praises China, says Tesla will continue to expand investments there
  • Elon Musk reassured Tesla’s commitment to China in a virtual speech at the World Internet Conference that’s hosted by the Cyberspace Administration of China.
  • Musk said the automaker will continue to expand its investments in the country.
  • It’s the second time this month Musk was highly complimentary of the nation that’s imperative to his electric vehicle company, saying it’s a “global leader digitalization.”
  • Less than two weeks ago, at the World New Energy Vehicle Congress, Musk said Chinese automakers were the “most competitive in the world.”

Elon Musk reassured Tesla’s commitment to China, saying the automaker will continue to expand its investments in the country.

Musk’s comments came in a pre-recorded question-and-answer style stream at the World Internet Conference, hosted by the Cyberspace Administration of China.

It’s the second time this month Musk was highly complimentary of the nation that’s imperative to his electric vehicle company, saying it’s a “global leader digitalization.” Less than two weeks ago, Musk, during another pre-recorded stream at the World New Energy Vehicle Congress, said Chinese automakers were the “most competitive in the world.”

“My frank observation is that China spends a lot of resources and efforts applying the latest digital technologies in different industries, including the automobile industry, making China a global leader in digitalization,” Musk said in the latest video. “Tesla will continue to expand our investment and R&D efforts in China.”

Read more on CNBC…

Continue Reading

Business

New York City Busts Vans Used for AIRBNBs

‘Operation Room Service’: NYC Officers Bust Illicit Vans Used for Airbnb Rentals

Published

on

New York City Busts Vans Used for AIRBNBs

Authorities in Manhattan impounded seven van over the course of two days they say were illegally registered and used as Airbnb rentals on city streets.

Coined “operation room service,” deputies from the sheriff’s office, in partnership with the NYPD, busted more than half a dozen vehicles Thursday and Friday.

Sheriff Joseph Fucito told NBC New York that investigators discovered the parked vans on streets throughout Chelsea and the East Village were being used as rentals for Airbnb.

According to the records shared by Fucito’s office, all seven of the vans had license New Jersey license plates. Registrations for three of the vans had expired more than four years while three others had plates belonging to other vehicles. The seventh van wasn’t registered.

Read more on NBC New York…

Continue Reading

Business

Costco issues toilet paper warning

Published

on

Costco issues toilet paper warning

Costco Wholesale is having trouble fulfilling toilet paper orders.

The membership-only warehouse retail chain is issuing a warning to customers that have purchased the common household item online, saying they may face delays in receiving their orders.  

“Due to increased volumes, you may see a slight delay in the processing of this order,” Costco’s customer service team said in a purchase order confirmation email viewed by FOX Business

The retailer noted that the company is “working to fulfill everything as quickly as possible” and that customers will get a follow-up email with tracking information once an order has shipped.

The warning notice comes after the company indicated that it would reinstate purchase limits at some of its store locations as customers reportedly stockpile goods once again – mimicking the early days of the COVID-19 pandemic last year.

Read more on Fox 5 New York…

Continue Reading

Trending