Democrat spending plan punishes Made in America, rewards oversees manufacturers

1 min read
FILE PHOTO: Shipping containers are unloaded from ships at a container terminal at the Port of Long Beach-Port of Los Angeles complex in Los Angeles

WASHINGTON – Ways and Means Republican Leader Rep. Kevin Brady (R-TX) released the following statement on Democrats’ recently proposed minimum tax on American corporations.

“Democrats’ latest scheme for a minimum tax on companies that make products in America will instead send jobs and manufacturing overseas in China and elsewhere, so the everyday products we need are delivered on container ships.

“We should not be punishing American businesses that specifically suffered during the pandemic.

“Another day, another unproven, confusing tax proposal from Democrats to fund their endless government checks and special handouts to the wealthy.”

Additional Background:

  • Democrats’ proposal is riddled with loopholes for the very same big corporations that Democrats say don’t pay enough tax–in particular, operations that move overseas who will get a “free pass.”
  • Their tax-and-spend plan also includes loopholes for green welfare – totaling up to $55B per year, which will be more than the minimum tax will raise.
  • The Treasury Secretary is given political authority to decide winners and losers–ultimately resulting in a more politicized tax code.

One Pager: Democrats’ Latest Scramble for Trillions of Dollars in Tax Hikes Will Send American Jobs Overseas and Harm Seniors’ Retirement Security

That’s just “Bad Idea #1.” Here are details on Democrats’ other two bad ideas:

Bad Idea #2 – MORE invasive financial monitoring with a so-called “wealth tax”

  • Democrats want to tax money Americans haven’t even made yet. Paired with their IRS surveillance proposal, Democrats invade the privacy of every American by allowing the IRS to spy on all bank accounts and spending.
  • Other countries—socialist ones—tried wealth taxes and abandoned them, because they hurt their economy, dried up investment and revenue, and sent it elsewhere. If it didn’t work for socialist countries, why is America even considering it?
  • This will seal the deal on preventing any further economic growth.

Bad Idea #3 – Attacking the source of retirement funds with a stock buybacks tax

  • Democrats want to create a third layer of tax on American companies – which will have the harshest effects on seniors and other savers.
  • Democrats are telling companies, if you return value to retirees or to 401(k) plans or to pension plans, you’re going to pay a punitive tax.