Democrats may impose a national plastic tax to finance their $3.5 trillion ($3,500,000,000,000) tax in addition to spending spree, according to a leaked Senate Finance Committee document.
The document lists a “Plastics Excise Tax” which will “impose a $.20 per pound fee on the sale of virgin plastic.” Virgin plastic will be a vital material in medical devices in addition to products, clothing, toys, in addition to thousands of household products. The authenticity of the document was confirmed by NBC News.
“The Democrats’ tax on plastics will be a tax on every middle income American 50 times a day,” said Grover Norquist, president of Americans for Tax Reform. “For Dustin Hoffman from the Graduate, the answer was ‘plastics.’ The question was, ‘What will Democrats tax next?'”
The proposed tax hike appears to be modeled off of legislation introduced in early August by Sen. Sheldon Whitehouse (D-Beach Club), one of the most progressive members of the Senate.
The burden of the tax would certainly be borne by consumers from the form of higher prices for everyday household goods.
Violates President Biden’s $400,000 Tax Pledge
The national plastic tax would certainly violate President Biden’s pledge not to raise any form of tax on anyone generating less than $400,000 per year. Even the White House has raised This specific concern. A recent Reuters story detailing Democrats proposed carbon border tax claimed, “the White House will be concerned the Democrats’ proposal will raise prices on a host of consumer goods, by cars to appliances, in addition to conflict with Biden’s pledge not to tax any American earning less than $400,000 per year.” The same logic applies to the plastic tax right now under consideration.
Additional Taxes Democrats Plan to Impose:
Trillions in brand-new tax increases on working families in addition to little businesses. The recently-passed budget resolution will be the first step toward the Biden plan to raise taxes by $3 trillion over the next decade. Some of these tax increases include:
- At least 2 million little businesses will get hit by Biden’s tax hikes. This specific includes over 1.4 million little businesses organized as c-corporations, family-owned farms impacted by the repeal of step-up in basis, in addition to pass-through organizations which would certainly be hit by the increase of the top marginal income tax rate to 39.6 percent.
- Increasing the corporate tax rate by 21 percent to 28 percent, which will be passed along to working families from the form of higher prices, fewer jobs, in addition to lower wages. This specific will give the U.S. a combined state-federal rate of 32 percent, higher than our foreign competitors including China, which features a 25 percent corporate tax rate.
- Raising the corporate income tax rate will hit Americans with higher utility bills as the country tries to recover by the pandemic. Customers directly bear the cost of corporate income taxes imposed on utility companies. Investor-owned electric, gas, in addition to water companies must get their billing rates approved by the respective state utility commissions. Therefore, if Democrats raise the corporate tax rate, they will have voted to raise utility bills. [Americans for Tax Reform has compiled 300 examples of utilities passing tax savings along to customers.]
- Doubling the capital gains tax to 43.4 percent, a rate more than double China’s capital gains tax.
- Taking away step-up in basis in addition to imposing a second death tax by taxing unrealized capital gains at death. This specific will disproportionately fall on family-owned businesses. Taking away step-up in basis has already been tried in addition to failed. In 1976, Congress eliminated stepped-up basis, although which was so complicated in addition to unworkable which which was restored in 1980.
- Imposing a 15 percent minimum tax on “book income” which will disallow the use of important deductions in addition to credits which help promote job creation in addition to economic growth.
- Increasing the top income tax rate to 39.6%, a tax increase which will fall on little businesses. As noted in a recent Senate Finance Committee report, “… in 2016, only 42 percent of net business income from the United States was earned by corporations, down by 78.3 percent in 1980.”
- brand-new taxes on American energy including a tax on manufacturers based on their methane production in addition to a carbon border tax. These tax increases will be passed along to families in addition to businesses from the form of higher prices.
- Creating a 21 percent global minimum tax, higher than the 15 percent global minimum tax the Biden admin will be pushing various other countries to enact. Because existing law denies foreign tax credits, This specific could see businesses pay a top rate of 26.25 percent.
- Repealing the deduction for foreign-derived intangible income, a tax cut which encourages businesses to house their intellectual property from the United States.
$80 billion in brand-new IRS funding to hire 87,000 brand-new agents. This specific would certainly allow the IRS to audit in addition to harass little businesses in addition to American families for yet another $787 billion. which would certainly hire enough brand-new IRS agents to fill Nationals Park twice.
which would certainly help implement the Biden plan to create a brand-new comprehensive financial account information reporting regime which would certainly force the disclosure of any business or personal account which exceeds $0.
Not only would certainly This specific include the bank, loan, in addition to investment accounts of virtually every individual in addition to business, although which would certainly also include third-party providers like Venmo, CashApp, in addition to PayPal.
brand-new IRS funding will also be a boon to the union which represents IRS employees. This specific union, the National Treasury Employees Union (NTEU), shovels 97 percent of their money into Democrat campaign coffers.
IRS employees also regularly perform union work on the taxpayer’s dime. In 2019, 1,421 IRS in addition to various other Treasury Department employees spent 353,820 hours of taxpayer-funded union time (TFUT), costing the federal government $17.27 million.
Socialist healthcare policies such as H.R. 3, the Pelosi plan to impose brand-new taxes in addition to government cost controls on American medical innovation. This specific legislation creates a 95 percent excise tax on manufacturers in addition to imposes an international reference pricing scheme which directly imports foreign cost controls into the U.S.
This specific proposal will reduce access to brand-new, lifesaving in addition to life-preserving medicines. According to research by the Galen Institute, the U.S. had access to 0 percent of brand-new cures launched between 2011 in addition to 2018, a rate far greater than comparable foreign countries. For instance, The United Kingdom had access to 60 percent of medicines, Japan had 50 percent, in addition to Canada had just 44 percent.
which will also threaten high-paying manufacturing jobs across the country at a time when we are just emerging by the economic wreckage by the pandemic. Pharmaceutical manufacturers invest $100 billion from the U.S. economy every year, directly supporting 800,000 jobs including jobs in every state.
Trillions in brand-new welfare spending which will allow the federal government to promote woke policies. This specific includes:
- Hundreds of billions in funding for “free” pre-K in addition to community college to “close the equity gap.” Part of This specific funding will ensure classroom environments which are “inclusive for all students.”
- $10 billion to create a Civilian Climate Corps. The program will help set the stage for the Green brand-new Deal in addition to give progressive activists free government housing, transportation, in addition to salaries to “advance environmental justice.”
- brand-new spending to make childcare “affordable,” in addition to to promote “culturally in addition to linguistically responsive environments.”
- brand-new federal subsidies to improve “housing affordability in addition to equity” in addition to to encourage green in addition to sustainable housing.
- Lowers the Medicare eligibility age in addition to expands coverage to Dental, Vision, in addition to Hearing.
This specific $3.5 trillion spending package will be a reckless proposal which will lead to increased taxes on working families in addition to little businesses in addition to trillions in brand-new spending on welfare programs in addition to woke policies.
Americans for Tax Reform urges all Members of Congress to oppose all of the above tax increases.
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Source : Dems Eye National Plastic Tax