On Wednesday, Senate Democrats launched an attack on the tax overhaul bill that President Trump signed into law in December, proposing raising the corporate tax rate to 25%, after the tax bill had lowered it from 35% to 21%; lowering the estate tax exemption from $11.2 back toward $5.6 million, where it had rested before the tax bill’s passage; and restoring the top individual tax rate to 39.6%, where it had been before the tax bill lowered it to 37%.
The GOP law passed in December in a totally partisan vote; no Democrat voted for it.
As The Wall Street Journal reports, Democrats claimed their tax-raising proposals would generate more investment for infrastructure; Sen. Ron Wyden (D-OR), the top Democrat on the Senate Finance Committee, stated, “They are out scrounging around looking under the sofas trying to find some spare change in order to pay for our infrastructure. We are closing specific and major loopholes.”
Senate Minority Leader Chuck Schumer (D-NY), indicated that the Democrats plan to use the tax plan as a cudgel against the GOP in the 2018 elections, gloating, “The contrast between tax cuts for the wealthiest people as opposed to middle-class jobs is one that we will forcefully advocate in the fall.”
Senate Majority Leader Mitch McConnell (R-KY) laughed off the Democrats’ proposals, asserting, “Repeal all these bonuses, pay raises, new jobs, and new investments? Talk about a nonstarter.”
The Democrats may well be barking up the wrong tree; support for the tax bill among Americans rose to 46% in January; by the end of February it had risen to 51%. Disapproval plunged from 57% in December to 45% at the end of February.