The Top 4 Ways Democrats Will Likely Raise Your Tax Bill If They Win in November The Top 4 Ways Democrats Will Likely Raise Your Tax Bill If They Win in November – NTK Network

The Top 4 Ways Democrats Will Likely Raise Your Tax Bill If They Win in November

A new report reveals the different strategies that Democrats may take to hike taxes on Americans.

By NTK Staff | 08.23.2018 @1:15pm
The Top 4 Ways Democrats Will Likely Raise Your Tax Bill If They Win in November

Democrats running for Congress in 2018 have not attempted to hide the fact that they oppose the GOP tax cuts passed last year. Now, reporters are beginning to focus on the strategies Democrats may attempt to use to give across-the-board tax hikes to Americans who fall into every tax bracket.

In the spirit of giving voters full knowledge of what Democrats plan to do once in office ahead of the 2018 midterm elections, here is the Democrats’ tax-hike wish list, per Bloomberg News:

Increase Corporate Tax Rate

In an infrastructure plan released in March, Senate Democrats called for a 25 percent corporate rate. More moderate House Democrats, including Neal, have said they’re supportive of a rate in the mid-to-high 20s. Representative John Delaney, a Maryland Democrat who is running for president in 2020, has called for increasing the corporate rate to 23 percent and to use additional revenue to fund infrastructure.

Hike Capital Gains Rates

Senator Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, has called for increasing the capital gains tax levy above the current 20 percent rate. Senators Bernie Sanders, a Vermont independent, and New York Democrat Kirsten Gillibrand, have pushed for a 0.5 percent tax on stock trades and 0.1 percent tax on bond trades, which could greatly increase the cost of high-frequency and high-volume transactions.

Repeal Carried Interest Break

Even though it would score political points, rolling back the provision would only raise about $19.9 billion over a decade, according to the Congressional Budget Office, a relatively small amount that would fund a small fraction of Democrats’ possible economic policies.

Revise Small Business Taxes

Modifying the law’s generous tax break for so-called pass-through entities, whose owners report their businesses’ income on their personal tax returns, is a sticky one for Democrats.

Some, such as Sean Casten, the Democrat facing Republican Representative Peter Roskam in a suburban Chicago district, have called to repeal the 20 percent deduction completely because of its complexity.

Ironically, despite all their bluster about protecting middle-class workers, Democrats are also eager to undo the state and local tax deduction cap that was put in place by the GOP tax law. That cap impacts high-income earners in traditionally blue states, i.e., Democrats’ donor class.

Of course, even if Democrats do take control of the House and (much less likely) the Senate, a Republican still resides in the White House, making it difficult to get a bill passed with these provisions.

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