UPDATED 6:55 AM PT – Wednesday, November 17, 2021
Republican members of the House Ways and Means Committee outlined the devastating effects the Biden administration’s newest tax proposal will have. Texas congressman Kevin Brady led his fellow Republicans in a meeting to discuss Joe Biden’s Made in America Tax Plan.
In a White House statement, the Biden administration claimed this plan will “make sure corporations pay their fair share in taxes.” However, Rep. Brady said Biden is wrong and the tax initiative will actually have devastating impacts on the American economy.
“The Biden administration now wants to pursue a so-called corporate booking provision, which is both untested and unvetted,” explained the Republican lawmaker. “It is better called a Made in America Tax. It discourages U.S. investment in new technology and new equipment, slows economic growth and just makes it harder for companies to invest in the productivity of their workers.”
The Biden administration claims the taxes will target wealthy corporations. However, Rep. Brady said the plan actually attacks small businesses.
“The nonpartisan joint committee on taxation says the middle class would shoulder a third of corporate taxes under the Democrats’ Made in America Tax,” he explained. “That hurts American manufacturing, energy, technology industries the worst.”
Brady said when big corporations are targeted by increasing taxation, the workers are the ones who end up getting hurt.
“Let’s not forget what 20 to 30 percent of middle class working families will get in exchange for these tax hikes: a worsened labor shortage, higher prices at the grocery store and the gas pump, and smaller pay checks.”
Additionally, Nebraska congressman Adrian Smith said instead of working on a bipartisan level to tackle rising inflation and the supply chain crisis, Democrats are making a social spending wish list.
“We should be working on a bipartisan to get Americans back to work and get companies investing even more in American production, domestic production,” said the Republican. “Instead, it’s Democrats’ social spending package, which is only going to make our supply chain problems and our inflation problem even worse.”
Smith then explained that the Democrat tax proposal gives the Secretary of the Treasury more power and is similar to the economic model of the former Soviet Union.
“The Democrats bill would allow the Secretary of the Treasury to handpick favorite industries to be exempted from the limits,” he noted. “That is called a command economy and we have seen how command economies, like the Soviet Union, regularly failed at meeting their peoples basic needs.”
Smith asserted Biden’s tax plan will have detrimental effects on the American economy, which is already in a weakened position.