Democrat presidential candidates are threatening to impose tax increases on the American people.
From repealing the Tax Cuts and Jobs Act, raising personal and corporate tax rates, the payroll tax, the death tax, and proposing a carbon tax and “wealth tax” — one thing is clear: Democrats will raise taxes if they win the 2020 elections.
The ‘Ways and Means Committee’ (Democrat-controlled) are laying the groundwork for a tax increase on businesses, falsely claiming that the corporate rate was lowered at the expense of middle-class families.
The corporate tax reduction from 35% to 21% has benefited families and workers alike by growing the economy, raising wages, and creating new jobs.
It’s no coincidence that, in the two years since the tax cut, unemployment has dropped to a 50-year low. It has hit all-time lows for key demographics including women, African Americans, and Hispanics. Thanks to these pro-growth policies, nearly seven million jobs have been created since Trump took office, and there are now fewer unemployed people than job openings.
In addition to wage growth, the tax cuts have allowed businesses to expand, hire new workers, and increase pay and benefits.
When Trump was elected president, the Dow Jones sat at 18,332. It is now at roughly 29,000, an increase of about 60%. This stock market growth benefits the 100 million 401(k)s, the 46.4 million households that have an individual retirement account, and the nearly $4 trillion in public pension funds, half of which is invested in stocks.
Democrats claim that the benefits to businesses far outweigh any benefits to the middle class. Often, they point to the fact that some corporations have low federal income tax liability.
This is misleading. Companies are still paying state and local taxes, as well as payroll taxes, which often total billions of dollars. This argument also ignores the true reason why companies have low tax liability: the existence of a number of credits and deductions intended to promote investment and job creation. For instance, full business expensing allows the deduction of new investments while the research and experimentation tax credit encourages companies to innovate.
As a direct result of the corporate rate cut, utility companies in all 50 states reduced their prices. That means lower monthly electric, gas, and water bills for households and businesses.
The fact is, corporate tax cuts have grown the economy, lifted wages, and created more jobs.