In this file:
· House Democrats Float 26.5% Top Corporate Rate in Tax Blueprint
· Dems Propose $3 Trillion Tax Hike on Working Families and Small Businesses
· House Ag Committee advances ag spending bill
House Democrats Float 26.5% Top Corporate Rate in Tax Blueprint
o Corporate tax rate, capital gains would be short of Biden plan
o House Ways and Means panel set to debate proposal on Tuesday
By Kaustuv Basu, Billy House, and Erik Wasson, Bloomberg
September 13, 2021
House Democrats on Monday released a package of tax increases that falls short of President Joe Biden’s ambition, an acknowledgment of how politically precarious the White House’s $3.5 trillion economic agenda is for party moderates.
The Democratic proposal from the Ways and Means Committee would raise the top corporate tax rate from 21% to 26.5%, less than the 28% Biden had sought. The top rate on capital gains would rise from 20% to 25%, instead of the 39.6% Biden proposed. Including a 3.8% Medicare surtax on high earners, the top capital gains rate would be 28.8%.
The package of proposals, estimated to raise more than $2 trillion, is slimmed down to appeal to business-minded Democrats, many of whom hail from swing districts. And Democratic negotiators, who need the party’s full support to push Biden’s agenda through Congress, will almost certainly pare them down further in the weeks ahead.
The tax proposals provide for “responsibly funding our plans,” including addressing climate change, creating jobs and extending an expanded child tax credit, Ways and Means Committee Chairman Richard Neal said in a statement Monday...
SALT Deduction ...
Dems Propose $3 Trillion Tax Hike on Working Families and Small Businesses
by Alex Hendrie, Americans for Tax Reform
September 12th, 2021
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.
Some of these tax increases include:
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%.
U.S. Federal + State Tax Rate Under Democrat Plan: 31%
China's Corporate Tax Rate 25%
Developed World (OECD) Average National + Subnational Rate: 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...
more, including links
House Ag Committee advances ag spending bill
By Julie Harker, Brownfield
September 13, 2021
The House Ag Committee passed its ag spending bill out of committee this morning along a party line vote.
Debate over the potential for damaging taxes on farmers got heated during a House Ag Committee hearing on the budget.
Minnesota Congressman Jim Hagedorn, a Republican, said any removal of stepped-up basis would be “a killer.”
“It’s going to contribute more to the war on agriculture that’s being waged by the Biden administration and the Democrat party. I’m going to be as blunt as that.”
But Iowa Congresswoman Cindy Axne, a Democrat, took issue with Hagedorn’s assessment as members debated the proposed ag budget which she says is a huge opportunity for agriculture...