If the “power to tax is the power to destroy,” as Daniel Webster and John Marshall warned, the new Democrat Congress is bent on destruction. Not only has upstart socialist congresswoman Alexandria Ocasio-Cortez (D-N.Y.) recently proposed a 70-percent top federal income tax rate, but her socialist colleagues (avowed and closeted) are set to call for a 33-percent corporate income tax rate increase. Just call them the Monkey (Money?) Wrench Party.
As Americans for Tax Reform (ATR) explains on the proposed corporate-wealth coveting:
House Budget Chairman John Yarmuth (D-Ky.) has announced that the forthcoming budget blueprint will call for a 33 percent corporate income tax rate increase by hiking the rate from 21 percent to 28 percent. This would make the U.S. a less competitive place to do business and make the U.S. statutory rate higher than many developed competitors.
State corporate taxes average 6 percent across the U.S, so this planned tax hike would give the U.S. an average top corporate rate of 34 percent.
The current combined corporate rate across the 36 member Organisation for Economic Development and Cooperation (OECD) is currently 23.7 percent.
This proposed tax hike would make the U.S. rate higher than major competitors such as the United Kingdom (19 percent), China (25 percent), Canada (26.8 percent), Germany (29.8 percent), and Ireland (12.5 percent).
“Hiking the tax rate on American businesses will kill jobs, lower wages, and reduce new investment in America,” said Grover Norquist, president of Americans for Tax Reform. “Why do the Democrats want to damage American competitiveness and job creation?”
As for Cortez’ coveting, her 70-percent figure “would nearly double the current top tax bracket, which is currently at 37 percent,” ATR points out. This is within the context of a system that already penalizes wealth creation. As ATR also informs, according
to the Congressional Budget Office:
-The top one percent of households pay 39.4 percent of federal income taxes and 26.2 percent of total federal taxes.
– The top 20 percent of households pay 88.1 percent of federal income taxes and 69.5 percent of total federal taxes.
– The top one percent of households pay an average income tax rate of 24 percent while the middle quintile pays an average income tax rate of 3 percent.
– The top one percent of households pay an average total tax rate of 33.3 percent while the middle quintile pays an average total tax rate of over 14 percent.
– The top 20 percent of households pay an average total tax rate of 26.7 percent while the middle quintile pays an average total tax rate of 14 percent.
Unfortunately, calls to tax the “other guy” are seductive. Yet while George Bernard Shaw noted, “A government that robs Peter to pay Paul can always depend on the support of Paul,” Paul may be paying a steeper price than he thinks.
Consider corporate taxes. Now, given that corporate America is funding the Left while silencing the Right, I have no love for it, and hearing how Amazon (which I quite dislike) paid almost no federal income tax in 2017 is striking.