{"id":857348,"date":"2021-10-07T17:29:08","date_gmt":"2021-10-07T21:29:08","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=857348"},"modified":"2021-10-07T17:29:12","modified_gmt":"2021-10-07T21:29:12","slug":"how-the-democrats-new-tax-bill-reverses-trumps-tax-cuts-an-interview-with-rep-kevin-brady","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-democrats-new-tax-bill-reverses-trumps-tax-cuts-an-interview-with-rep-kevin-brady\/","title":{"rendered":"How The Democrats\u2019 New Tax Bill Reverses Trump\u2019s Tax Cuts: An Interview With Rep. Kevin Brady"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-the-democrats-new-tax-bill-reverses-trumps-tax-cuts-an-interview-with-rep-kevin-brady%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=857348&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/10\/GettyImages-1271201074-scaled-1.jpg?w=1200&amp;h=800&amp;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>A recent analysis <\/span><a href=\"https:\/\/www.dailywire.com\/news\/in-2020-americans-paid-more-in-taxes-than-they-spent-for-health-care-food-entertainment-and-clothing-combined\"><span>found<\/span><\/a><span> that Americans\u2019 tax expenses for last year were larger than their combined spending on healthcare, food, entertainment, and clothing \u2014 combined.&nbsp;<\/span><\/p>\n<p><span>Nevertheless, Democrats in Congress are <\/span><a href=\"https:\/\/www.dailywire.com\/news\/how-the-democrats-new-tax-hike-will-impact-your-wallet\"><span>attempting<\/span><\/a><span> to pass a $2.9 trillion tax hike. The legislation would raise the income tax, the corporate tax, the capital gains tax, and the estate tax.<\/span><\/p>\n<p><span>Democrats are marketing the legislation as a tool to \u201ctax the rich\u201d \u2014 while leaving the pocketbooks of working-class Americans unscathed. As President Biden <\/span><a href=\"https:\/\/www.dailywire.com\/news\/im-a-capitalist-but-pay-your-fair-share-biden-praises-democrat-tax-hike\"><span>argued<\/span><\/a><span>: \u201cI\u2019m not out to punish anyone. I\u2019m a capitalist. If you can make a million or a billion dollars, that\u2019s great. God bless you. All I\u2019m asking is you pay your fair share. Pay your fair share just like middle-class folks do. But that isn\u2019t happening now.\u201d<\/span><\/p>\n<p><span>The Democrats\u2019 bill, however, breaks President Biden\u2019s promise to not raise taxes on Americans earning less than $400,000 per year. It is effectively a reversal of the Tax Cuts and Jobs Act of 2017 \u2014 the chief legislative victory of President Trump\u2019s administration, which decreased the tax burden for Americans across the income spectrum.<\/span><\/p>\n<p><span>In an interview with The Daily Wire, Rep. Kevin Brady (R-TX) \u2014 the Ranking Member of the House Ways and Means Committee, which is responsible for deliberating taxes and other fiscal policy measures \u2014 discussed the implications of the Democrats\u2019 new tax hike.<\/span><\/p>\n<p><span>Brady believes it is \u201cnonsense\u201d to assert that the Democratic legislation would merely force wealthy Americans to \u201cpay their fair share.\u201d Instead, it is an \u201ceconomic surrender\u201d that would reverse the Trump tax cuts \u2014 to the detriment of all Americans.<\/span><\/p>\n<p><b>Small Businesses<\/b><\/p>\n<p><span>Among the most dangerous aspects of the Democratic tax hike is a larger burden placed upon small businesses \u2014 which employ roughly half of the workers in America.&nbsp;<\/span><\/p>\n<p><span>\u201cA lot of our small businesses, most of them don\u2019t pay taxes as corporations,\u201d explained Brady. \u201cThey pay them as individuals. They are raising taxes on small businesses that make more than about $2 million per year, which are a lot of our small businesses. That\u2019s not that big of a business, frankly.\u201d<\/span><\/p>\n<p><span>Indeed, 95% of American businesses \u2014 such as sole proprietorships, LLCs, partnerships, and S-corporations \u2014 are organized as pass-through entities. Rather than paying the corporate tax, they pay the income tax rate \u2014 which will observe an increase from 37% to 39.6% for the highest bracket.<\/span><\/p>\n<p><span>Brady noted that the Tax Cuts and Jobs Act did the opposite.<\/span><\/p>\n<p><span>\u201cThree out of four dollars of our tax cuts went to individuals, families, and small businesses,\u201d said Brady. \u201cIt was really focused on the low and middle-income taxpayer, as well as our local main street businesses. As a result, our economy flourished, but more importantly, people flourished.\u201d<\/span><\/p>\n<p><span>Other elements of the Democratic tax hike will also slam small businesses. \u201cThey are raising the capital gains rate, which is an incentive we have for individuals and small businesses to invest in their local economy \u2014 their own business, expansion, new equipment, issues like that. They also may expand the Obamacare investment tax. We\u2019re going to expand that to 3.8% across to every small business. So that\u2019s going to take money from their pocketbooks.\u201d<\/span><\/p>\n<p><span>\u201cOne I think is the most disheartening is they\u2019re going to expand the death tax to tens of thousands of more family-owned businesses and farms,\u201d he continued. \u201cWe doubled the exemptions in the Republican tax reform to protect family-owned businesses and farms from having to sell off to pay Uncle Sam rather than passing it to their kids and grandkids. They reversed that \u2014 and that is going to be devastating for these multi-generational farms and businesses.\u201d<\/span><\/p>\n<p><span>Brady again contrasted the Democrats\u2019 pending policy with the Republicans\u2019 bill \u2014 noting that income inequality began to shrink for the first time in fifty years under the legislation.<\/span><\/p>\n<p><span>\u201cThree out of four dollars of our tax cuts went to individuals, families, and small businesses. It was really focused on the low and middle-income taxpayer, as well as our local main street businesses. As a result, our economy flourished, but more importantly, people flourished.\u201d<\/span><\/p>\n<p><span>\u201cPresident Trump\u2019s proud of that. All of that is reversed and at risk with these Democratic tax hikes.\u201d<\/span><\/p>\n<p><b>Corporations<\/b><\/p>\n<p><span>In 2017, Republicans lowered the corporate tax rate from 35% to 21%. Under the Democrats\u2019 bill, however, a corporation\u2019s first $400,000 of income would be taxed at 18%. Income up to $5 million would then be taxed at 21%, and any additional earnings would be subject to a 26.5% tax.<\/span><\/p>\n<p><span>Brady noted that increasing taxes on corporations will drive American jobs abroad: \u201cRaising the taxes our businesses in America pay to one of the worst in the world\u2026 When you have a tax rate higher than others, our businesses can\u2019t compete.\u201d<\/span><\/p>\n<p><span>\u201cOne of the biggest changes in the Republican tax reform,\u201d explained Brady, \u201cwasn\u2019t just that we lowered rates to be competitive. We redesigned the tax code so our American businesses could compete and win anywhere in the world, including in America. And when they did, they could bring those profits back tax-free to be invested in the United States, not abroad.\u201d<\/span><\/p>\n<p><span>\u201cWe saw $1.5 trillion of profits flow back immediately. We gained a quarter of a million manufacturing jobs \u2014 the fastest growth in decades. We saw a surge of new research and patents \u2014 American intellectual property \u2014 flowing back to the United States.\u201d<\/span><\/p>\n<p><span>In contrast, Brady estimates that the Democrats\u2019 legislation \u201cwill kill up to three million American jobs over time, and certainly send jobs, manufacturing, and research and investment overseas.\u201d<\/span><\/p>\n<p><span>\u201cRaising these corporate business rates so high, and then making other international tax changes that favor foreign companies over America \u2014 without question, we are going to take a big step backward to those days where Americans regularly went online or opened the paper and saw another company pulling up roots and moving their plants overseas. I\u2019m really worried about how economically crippling those high tax rates will be.\u201d<\/span><\/p>\n<p><b>Subsidies<\/b><\/p>\n<p><span>Beyond raising the taxes that produce most of the federal government\u2019s revenue, the Democrats\u2019 legislation introduces several extraneous levies and subsidies \u2014 including a nicotine tax and a renewable energy credit.<\/span><\/p>\n<p><span>As with the heightened taxes on small businesses, the tobacco tax constitutes a breach of the President\u2019s promise to not raise taxes on the middle class.<\/span><\/p>\n<p><span>\u201cThey do it with $100 billion in taxes on tobacco, nicotine, and vaping that directly hits working families and taxpayers,\u201d said Brady. \u201cCongress\u2019s own Joint Committee on Taxation says that low and middle-income families will see tax increases starting next year. So there\u2019s no question he breaks the pledge there.\u201d<\/span><\/p>\n<p><span>With respect to green energy subsidies, Brady detailed that the Democrats\u2019 legislation mimics the approach of the Green New Deal.<\/span><\/p>\n<p><span>\u201cThey aren\u2019t simply creating and expanding new tax credits for renewable energy. They are doing what\u2019s called \u2018direct pay,\u2019 which means you don\u2019t have to have a tax liability. You\u2019re simply getting a government check. Whether you\u2019re the biggest business in America or the smallest, you\u2019re actually getting a government subsidy for developing a green project, and then subsidies to operate.\u201d<\/span><\/p>\n<p><span>For example, the electric vehicle credit is expanding from $7,500 to $12,500. \u201cAnd again, it doesn\u2019t come off your taxes \u2014 you get a check for this.\u201d<\/span><\/p>\n<p><span>\u201cUnder this bill, a family making $800,000 per year is eligible for a $12,500 check to buy a luxury electric vehicle with up to a $74,000 price tag,\u201d noted Brady. \u201cThat check they\u2019re getting will be paid for by the maid who comes to clean their house. It\u2019s a stunning giveaway to the wealthy.\u201d<\/span><\/p>\n<p><b>Odds of Passing<\/b><\/p>\n<p><span>As it moves through Congress, Brady expects the legislation to get \u201cworse before it gets better.\u201d<\/span><\/p>\n<p><span>\u201cDemocrats will be looking for more tax increases or budget gimmicks before this measure goes to the floor, because their demand for more spending is even greater,\u201d he explained. \u201cThe question then, of course, is what happens in the Senate. I think the key people to look for are those six House Democrats endorsed by the U.S. Chamber as supposedly pro-business. We\u2019ll see if any step forward as Main Street moderates.\u201d<\/span><\/p>\n<p><span>\u201cIt really is whether there are any moderate Democrats left willing to fight for their local jobs and against spending.\u201d<\/span><\/p>\n<p><i><span>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/span><\/i><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recent analysis found that Americans\u2019 tax expenses for last year were larger than their combined spending on healthcare, food, entertainment, and clothing \u2014 combined.\u00a0Nevertheless, Democrats in Congress are attempting &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-857348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/857348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=857348"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/857348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=857348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=857348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=857348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}