The Democrats’ new “framework” full of crippling tax hikes and spending not only will kill U.S. jobs and drive inflation higher on families, but will also make the U.S. tax rate on personal income the highest in the developed world.
Currently, the average top tax rate on personal income in the U.S. is 42.9 percent, hovering near the overall average for OECD nations. According to the Tax Foundation, the Democrats’ plan would increase this rate to an astonishing 57.4 percent, the highest among all developed nations.
While this new rate would cause the U.S. to enforce the highest tax rate in the OECD, it also propels the U.S. tax rate 12 percent to even higher than Communist China’s rate.
KEY EXCERPTS:
- “In addition to the top federal rate, individuals face taxes on personal income in most U.S. states. Considering the average top marginal state-local tax rate of 6.0 percent, the combined top tax rate on personal income would be 57.4 percent—higher than currently levied in any developed country.”
- “Raising the top marginal tax rate on ordinary income to the highest in the OECD will damage U.S. competitiveness. It will also reduce incentives to work, save, invest, and innovate, with broad implications for the U.S. economy.”
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KEY TAKEAWAYS:
Democrats’ new “framework” includes crippling tax hikes and budget gimmicks.
- $420 billion in tax hikes on small businesses.
- $800 billion in tax hikes on American businesses that will kill U.S. jobs, surrender economically to China, Russia, Japan, and Europe, and make it better to be a foreign company than an American one.
- A new Tax on Retirement Plans that hurts workers and seniors by punishing businesses that invest in their own stock.
- $330 billion in new spending that includes incentives to the jobless to stay home rather than work, causing 2 million workers to exit the workforce.
- $550 billion in green welfare subsidies for the wealthy and big corporations.
- $545 billion in budget gimmicks.
Written by GOP House Ways and Means Committee