Fact Check: Dems Subsidize Millionaires, Attack Main Street & Ordinary Americans

September 14, 2021 — Blog    — Facts Are Stubborn Things    — Press Releases    — Select Revenue Measures   

Don’t buy Democrats’ hype that their tax increases simply hit millionaires. Instead, Democrats’ tax increases hit Main Street businesses and middle-class families’ pocketbooks to offset the subsidies that they offer to the wealthy.

Who suffers? Ordinary Americans.

KEY POINTS:

  • Main Street businesses will be hit with hundreds of billions of dollars in tax increases, while millionaires and well-connected corporations receive hundreds of billions of dollars in loopholes and tax rebates.
  • The non-partisan Joint Committee on Taxation (JCT) found that workers will shoulder the burden of the tax hikes and that within 10 years of a corporate tax increase, 66.3 percent of the corporate tax burden would be borne by lower- and middle-income taxpayers.
  • It’s not just the JCT – analysis from the Left-leaning Tax Policy Center finds that President Biden’s overall tax plan will raise taxes on 75 percent of middle-class families next year, rising to 95 percent of middle-class families over the long term.
  • The JCT also found that 25 percent of the burden of Democrats’ tax hikes would be borne by workers in slashed wages.
  • In fact, Democrats’ Washington-directed tax plan before the Ways and Means Committee today provides a massive windfall for the wealthy. See below:

(CLICK HERE for a printable version of this chart)

A family earning $800,000 in income in 2022:

  • $11,100 tuition savings – more financial aid so high-cost universities can avoid endowment tax
  • $12,500 tax credit – Tesla model 3 for college freshman ($49,990 MSRP)
  • $12,500 tax credit – Tesla Model Y for parents ($60,990 MSRP)
  • $1,350 tax credit – “home energy audit,” designer doors and windows
  • $18,000 tax credit – hydrogen fuel cell system for home ($60,000 cost)
  • $10,000 tax credit – geothermal heat system for a second home ($30,000 cost)
  • $52,550 tax savings – additional deduction by restoring the SALT tax shelter (promised by Chairman Neal)
  • $118,000 – TOTAL SAVINGS

(CLICK HERE for a printable version of this chart)

BOTTOM LINE: Democrats have protected special tax credits for multi-billion dollar companies, wealthy elite universities, and to subsidize electric vehicles for the super wealthy. They rejected every Republican amendment to limit the availability of these subsidies to those who do not need them.

SUBCOMMITTEE: Select Revenue Measures    SUBCOMMITTEE: Full Committee