A new report warns that the US will have the highest corporate tax rate and highest capital gains tax rate in the developed world
First on Granthshala: A new report from a conservative anti-tax group is warning of huge losses in economic output and a significant hit for middle-class families if the tax hike is signed into law, along with a $3.5 trillion Democratic spending proposal.
“Mimicking European-style fiscal policy would create European-style economic weakness, especially given that much of Biden’s newly redistributed spending would discourage work and Biden’s class war tax increase would stifle savings, investment and entrepreneurship.” Will punish,” says a new report by the club for development.
Conservative Group Launches Multi-Million Dollar Push to Detail Dames’ $3.5 Trillion Spending Plan
While much of the debate around the bill has centered on the spending side, the group is trying to raise awareness of the tax plan present in the bill. Report Be warned that the proposal will result in the highest corporate tax rate in the US and the highest capital gains tax rate in the developed world.
“The bottom line is that the president’s tax and spending agenda repeats the mistakes of countries such as France, Italy and Greece,” it finds. “Those nations are suffering from slow growth, high unemployment and low living standards, in large part due to poor fiscal policy.”
Report Predicts economic output losses of $3 trillion over the next 10 years, a loss of $1.6 trillion in workers compensation over the next 10 years, an average loss of more than $10,000 in worker compensation, and a standard of living of 4% In the fall of a lifetime for young workers.
David Mackintosh, president of the Club for Growth, told Granthshala Business in an interview, “It’s a disaster for economic growth. GDP slows down, with fewer jobs and, crucially, for families, incomes also fall over the next 10 years.” comes.”
Mackintosh also argued that a new round of taxes would be particularly painful given the state of the economy and the continuing COVID-19 pandemic.
‘As we continue to come out of the shutdown from the first round of COVID and some places have to restrict activity again with the delta virus and who knows what happens next year, the economy is in a precarious state, ” They said. .
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The report comes as Democrats try to move forward with a budget reconciliation bill by mashing together many of their spending and other policy priorities. A budget reconciliation bill requires only 50 votes in the Senate, and therefore would require no Republican support. He would also need a majority in the House, where the Democrats only have a small majority and cannot have many defections.
Conservative groups like the Club for Growth are trying to peel away more liberal Democrats, who have stressed the size of the spending package along with massive tax increases.
Club for Growth told Granthshala Business last week it would spend $300,000 running ads on TV and digital for a week in 10 major districts targeting liberal Democrats who face tough re-election challenges. are the first phase of a $2 million effort to oppose Democrats. ‘ Comprehensive social spending package.
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The group says it is also running ads praising Democrats who oppose their party and oppose the bill.
“It’s tagged on liberal Democrats, who don’t like social programs and socialist approaches on spending or taxes, but are being whipped into shape by the leadership – and our goal is for them to stand home for a long time.” Back is to generate support,” Mackintosh said.
Granthshala News’ Paul Steinhauser contributed to this report.