Watch out, America: if the Democrats win back control of one or both Houses of Congress in November, they plan on reversing the Republican tax cuts and hiking rates for corporations and the wealthy, popularity of Trump's tax restructuring be damned.
The plan would also greatly increase the deficit spending Democrats complained, back during the tax cut process, was already too high, creating and funding a $1 trillion infrastructure plan they claim will put Americans back to work — even though jobless numbers are, right now, at a low. They would use an additional $40 million to provide high speed internet to rural America, the Washington Examiner reports.
The plan nearly wipes out any gains achieved by the Trump tax cuts because Sen. Chuck Schumer, who presented the plan, believes Trump's tax restructuring — particularly for corporations — is "unpopular." It seems he's missed the memo; although Trump's popularity has suffered in recent weeks because of rumors of an extra-marital affair with an adult film star, and increased activity from the Special Counsel's office, the tax cuts remain well-liked and propelled the president to near 50% approval in January.
A great deal of that warm fuzziness stems from corporations announcing they would "share the wealth": increasing wages, paying out bonuses, expanding their businesses, and bumping up shareholder dividends after receiving their tax cut windfalls.
But Schumer's plan would increase the corporate tax rate from its new low of 21% back up to 25%. That makes it still short of the 35% it once was under President Obama, but might kill off any immediate corporate growth. The United States is still in the middle of the pack in terms of corporate tax rates, and agreements to move jobs and industry back home hinge on a steady, low tax rate that is competitive with other countries.
The Democrats' plan would also raise the tax rate for the highest income tax bracket from 37% to 39%, reinstate the alternative minimum tax, and cut the "death tax" deduction in half — plans that would effectively raise taxes and fees on a majority of Americans, and not just the rich.
Forbes points out that this new plan may be a big mistake for Democrats looking to foment support ahead of the mid-term elections. Their base may want higher taxes, but those who voted for Trump — especially in "red states" with elected Democrats running for re-election against the president — won't be thrilled to hear they'll pay more come November if they give the Democrats back the legislature.