Mike Palicz

Dem Reconciliation Bill Contains $13 Billion Tax on Crude Oil

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Posted by Mike Palicz on Tuesday, November 30th, 2021, 11:08 AM PERMALINK

Democrats' multi-trillion dollar tax and spend bill includes a nearly $13 billion energy tax on crude oil, a tax hike that will be paid by consumers in the form of rising gasoline prices.

Gas Tax Increase on Autopilot

Section 136701 of the bill would impose a 16.4 cents per barrel tax on crude oil and petroleum products beginning in 2022, a tax increase of $12.77 billion according estimates from the Congressional Budget Office.

Further, the per barrel tax is pegged to inflation, meaning the tax hike is set on autopilot and will automatically ratchet up each year without Congress having to vote again. As gas prices and the cost of consumer goods rise, so too will the amount of the tax levied.

Exacerbates Gas Crisis

Democrats proposed oil tax comes when Americans are facing average gas prices of $3.49 per gallon throughout November, marking 12 straight months of rising gas prices and the highest retail gas prices since August of 2014.

In a stated effort to relieve rising gas prices, the Biden Administration announced last week that it was authorizing the release of 50 million barrels of oil from the Strategic Petroleum Reserve, an amount only equal to roughly 2.5 days of U.S. crude oil consumption. Yet at the same time, Democrats and the Biden Administration continue to back a $13 billion tax on crude oil that will lead to rising gas prices and exacerbate the crisis.     

Violates Biden’s $400,000 Tax Pledge

This tax hike is a clear violation of President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. Officials within the administration have repeatedly admitted taxes that raise consumer energy prices are in violation of President Biden’s $400,000 tax pledge.

Biden’s own Secretary of Transportation, Pete Buttigieg, previously acknowledged that increasing gas taxes would violate President Biden’s pledge.

“The President’s made a commitment that this administration will not raise taxes on people making less than $400,000 a year,” Buttigieg told Bloomberg Radio’s “Sound On” show in February. “And so that rules out approaches like the old-fashioned gas tax.” Buttigieg’s comments walked back his previous call to raise the gas tax and index it to inflation during confirmation hearings.

Americans for Tax Reform opposes the Democrat oil tax and urges all members of Congress to oppose President Biden’s multi-trillion dollar tax and spend bill. 

Photo Credit: Chris Yarzab

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Dem Reconciliation Bill Contains $8 Billion Home Heating Tax

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Posted by Mike Palicz on Thursday, November 18th, 2021, 2:52 PM PERMALINK

The Democrat multi-trillion dollar tax and spend bill includes an $8 billion energy tax on natural gas production according to projections from the Congressional Budget Office, a tax that will be paid by American households in the form of higher energy bills.

Democrats have included this home-heating tax in the bill despite retail prices for energy surpassing multiyear highs in the United States. Even without the new tax, the U.S. Energy and Information Administration is already issuing warnings that “nearly half of U.S. households that heat primarily with natural gas will spend 30% more than they spent last winter on average.” This tax hike will only exacerbate this energy crisis for American households.

This tax hike is a clear violation of President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. Officials within the administration have repeatedly admitted taxes that raise consumer energy prices are in violation of President Biden’s $400,000 tax pledge.

The legislation would impose a regressive tax on oil and gas development based upon emission levels of methane during production, leading to higher energy bills for consumers and higher costs of everyday products. A recent letter to Congress from the American Gas Association warned that the methane tax would amount to a 17% increase on an average family's natural gas bill.

The new tax would be phased in, beginning at $900/ton of methane emissions in 2023 and rising to $1,500/ton for emissions reported in 2025. The Democrat proposal is modeled off of legislation introduced earlier this year by Sen. Sheldon Whitehouse (D-R.I.).

Americans for Tax Reform opposes the Democrat tax on home heating and urges all members of Congress to oppose President Biden’s multi-trillion dollar tax and spend bill. 

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Dem Bill Includes $900 Handout for Electric Bicycles

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Posted by Mike Palicz on Wednesday, November 3rd, 2021, 6:39 PM PERMALINK

Taxpayers are on the hook for up to $900 of the purchase of an electric bicycle in Democrats’ most recent version of their reckless tax and spending spree.

According to the text of the bill, Section 136407 would create a new 30% refundable tax credit for electric bicycles purchased before January 1, 2026. The bill allows up to $3,000 of the cost of an “e-bike” to be taken into account for the credit, creating a maximum allowable credit of $900 for individuals. E-bikes costing as much as $4,000 would be eligible for the credit.

Could send up to $7,200 to e-bike owners before provision expires

The credit begins phasing out for joint filers earning $150,000 ($75,000 for individuals) at a rate of $200 per $1,000 of additional income. Filers would be allowed to claim 1 credit per year (2 per year for joint filers) meaning taxpayers would potentially subsidize multiple e-bikes purchased by the same filer year after year. The bill would allow for a married couple earning $150,000 to purchase two new electric bicycles every year and claim up to $7,200 in e-bike credits before the provision expires in 2026.   

Ignores Ways and Means amendment cutting credit to 15%

While the original draft of the reconciliation package included a 30% e-bike credit, the Ways and Means committee amended the bill during mark-up to limit the credit to 15% and a maximum credit of $750. The latest version of the ignores amendments that passed in committee with Democrat support and instead increases the credit to 30% capped at $900.

Democrats want e-bikes to replace cars

Democrats’ e-bike tax credit is modeled off of legislation introduced earlier this year by Rep. Jimmy Panetta (D-California) and Rep. Earl Blumenauer (D-Oregon). In a press release accompanying the rollout of the legislation, Rep. Panetta stated the purpose of the e-bike credit was to “transition to greener modes of transportation” by "incentivizing the use of electric bicycles to replace car trips.”

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Dems Call for Green New Deal Youth Patrol

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Posted by Mike Palicz on Thursday, October 28th, 2021, 10:40 AM PERMALINK

As small businesses struggle to find workers, Democrats want to recruit and deploy 300,000 taxpayer-funded climate activists across the country, an average of 6,000 per state

In today's reconciliation framework, President Biden and congressional Democrats are calling for the creation of a uniformed “Civilian Climate Corps” tasked with the vague mission of “advancing environmental justice.” The federal program will "recruit, select, fund, and oversee" 300,000 "CorpsMembers" by 2025.

The Civilian Climate Corps will be a make-work program for progressive activists. Members of this Green New Deal Youth Patrol will receive taxpayer-funded housing, food, full health care, childcare, up to $50,000 in university tuition payments and transportation to "work."

A fact sheet says "Participants, or 'corpsmembers,' will receive education and training in coordination with" local green groups.

As Main Street struggles to find workers, Democrats want to recruit and deploy 300,000 activists across the country serving as the government-stamped hall monitors of the Green New Deal.

Perhaps they will knock on your door wielding a clipboard and ask you to turn down your thermostat.

The CCC's inclusion in the Democrats’ spending package comes after Senate Majority Leader Chuck Schumer -- fearful of a primary challenge from Alexandria Ocasio Cortez, vowed that he would “work tirelessly to achieve a big and bold Civilian Climate Corps that places justice at the center and urgently addresses our interlocking climate and economic crisis.”

The new plan is modeled off of the Civilian Climate Corps for Jobs and Justice Act introduced in April which sponsors say will "transform our economy."

In addition, the plan will:

Taxpayer-funded housing, clothing, and feeding of Climate Corps members. 

Taxpayers would be responsible for paying the cost of Climate Corps members’ housing, clothing, feeding, allowance, and medical expenses. Nothing screams good-paying jobs like an “allowance” from the government. Here it is straight from the bill’s text:

“The President may provide housing for persons employed in the Civilian Conservation Corps and furnish them with such subsistence, clothing, medical attendance and hospitalization, and cash allowance, as may be necessary, during the period they are so employed.”

Taxpayer-funded transportation to “work” for Climate Corps members.

Not only will the government provide food, clothing, housing, and an allowance, it will also pick up members of the Climate Corps and drive them to work for them. 

"The President may provide for the transportation of persons employed in the Civilian Conservation Corps to and from the places of employment."

Allows President Biden to seize private property through land condemnation.

President Biden would be empowered to seize public land deemed necessary to construct projects authorized under the bill.

“The President, or the head of any department or agency authorized by the President to construct any project or to carry on any public works under this Act, may acquire real property for such project or public work by purchase, donation, condemnation, or otherwise.”

Jobs are prioritized for individuals who have already used up unemployment benefits 

According to the text of the legislation, the President shall prioritize “unemployed citizens who have exhausted their entitlement to unemployment compensation,” over other citizens still “eligible for unemployment compensation payable under any State law or Federal unemployment compensation law.”

80 percent of funding used on salaries and benefits

While the Biden administration claims the proposal is about conservation and addressing climate change, the legislation mandates that 80 percent of funding is to be used just on the salaries of staff.

“Not less than 80 percent of the funds utilized pursuant to paragraph (1) must be used to provide for the employment of individuals under this Act.”

Photo Credit: By kthtrnr licensed under CC BY-NC-ND 2.0


5 Times Sen. Kyrsten Sinema Voted Against Carbon Taxes

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Posted by Mike Palicz on Tuesday, October 19th, 2021, 11:20 AM PERMALINK

Senate Democrats are pushing a carbon tax that would increase the cost of gasoline and household electricity bills in order to raise revenue for President Biden’s multi-trillion dollar tax and spend blowout, a clear violation of Biden’s pledge to not raise any form of tax on anyone making less than $400,000 per year.

According to reporting from Politico this morning, the new push for a carbon is facilitated by Sen. Kyrsten Sinema (D-Arizona), whose opposition to other proposed tax increases has caused her Democrat colleagues to come up with additional options to pay for their progressive wish list.

Democrats are reportedly considering a carbon tax that starts around $20 per ton and ramps up every year thereafter. The Congressional Budget Office has previously estimated that a $20 per ton carbon tax would increase taxes by $1.2 trillion over a decade while the center-left Tax Policy Center found a $20 per ton carbon tax reduces the pre-tax income of households in the lowest income quintile by nearly one percent.

However, Sen. Sinema has a long and consistent voting record opposing all forms of a carbon tax, as Americans for Tax Reform documents below. If Sen. Sinema were in fact to support a carbon tax, it would be a clear reversal of her Congressional voting record to date.

Below are five instances Sen. Sinema voted against a carbon tax and the regulation of carbon emissions.

1.  2013 – Sinema votes to block the Obama Administration from unilaterally implementing a carbon tax.

In 2013, Sinema was one of twelve House Democrats voting in support of an amendment to the REINS Act (Regulations From the Executive in Need of Scrutiny Act of 2013) that required the Administration to receive approval from Congress before implementing a carbon tax.

Notably, the amendment backed by Sinema inserted language into the bill that stated, “as a tax on carbon emissions increases energy costs on consumers, reduces economic growth and is therefore detrimental to individuals, families and businesses, the REINS Act includes in the definition of a major rule, any rule that implements or provides for the imposition or collection of a tax on carbon emissions.''

2.  2016 – Sinema votes in support of Steve Scalise’s anti-carbon tax resolution

As a member of the House of Representatives in 2016, Sinema voted in support of Republican Whip Steve Scalise’s anti-carbon tax resolution. Sinema was one of six House Democrats that joined with House Republicans in support of  H.Con. Res.89, which stated “a carbon tax will fall hardest on the poor, the elderly, and those on fixed incomes,” and “a carbon tax will increase the cost of every good manufactured in the United States.”

3.  2018 In the midst of her Senate campaign, Sinema again votes in support of the Scalise anti-carbon tax resolution

In July of 2018, while she was in the heat of a tight election for her current Senate seat, Sinema again voted in support of Republican Whip Steve Scalise’s anti-carbon tax resolution. Sinema was one of seven Democrats that joined with House Republicans in support of H.Con.Res.119 which stated “a carbon tax will mean that families and consumers will pay more for essentials like food, gasoline, and electricity,” and “American families will be harmed the most from a carbon tax.”

4.  April 2021 – Sen. Sinema introduces legislation to prevent the regulation of livestock emissions

Sen. Sinema and Sen. John Thune (R- South Dakota) introduced legislation in April to prevent the EPA from regulating carbon and methane emissions from livestock production.

“Cutting unnecessary regulations frees Arizona cattlemen from costly permit fees and keeps prices affordable for Arizona families,” said Sinema in a press release accompanying the introduction of her legislation.

A carbon tax would be levied on agricultural emissions, including those from livestock production and require regulation from the EPA.  

5.  August 2021 – Sen. Sinema votes to prohibit new methane requirements on livestock

In August, Sinema voted in favor of an amendment to “establish a deficit-neutral reserve fund relating to prohibiting or limiting the issuance of costly Clean Air Act permit requirements on farmers and ranchers in the United States or the imposition of new Federal methane requirements on livestock.”

Americans for Tax Reform opposes any effort to impose a carbon tax and urges Sen. Sinema to maintain her long and consistent record opposing a carbon tax.

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Schumer Readies Carbon Tax that Doubles Gas Tax, Violates Biden’s $400K Tax Pledge

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Posted by Mike Palicz on Friday, September 24th, 2021, 1:30 PM PERMALINK

Senate Finance Committee Chairman Ron Wyden (D-Oregon) confirmed today that the Senate majority leader asked him to craft carbon tax legislation to be included in Democrats' $3.5 trillion tax and spend blowout.

Upon the request of Majority Leader Chuck Schumer (D-New York), Wyden is drafting legislation that could create a carbon tax starting as high as $18 per ton and set to increase over time, according to reporting from the New York Times. For context, the Congressional Budget Office has previously estimated that a $20 per ton carbon tax would increase taxes by $1.2 trillion over a decade while the center-left Tax Policy Center found a $20 per ton carbon tax reduces the pre-tax income of households in the lowest income quintile by nearly one percent. 

A Clear Violation of Biden’s Tax Pledge

This tax increase would violate President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. A carbon tax would increase the price of gasoline, household energy bills and everyday consumer goods.

Last week, a leaked document from the Senate Finance Committee outlined plans for a similarly described carbon tax that would be paired with a carbon “border adjustment” – a proposal which the Whitehouse has already stated would “raise prices on a host of consumer goods, from cars to appliances, and conflict with Biden’s pledge not to tax any American earning less than $400,000 per year.” 

Gas Tax Hike on Steroids, Would Double the Gas Tax in Year One

A carbon tax of $18/ton would roughly translate to a gas tax increase of 18 cents per gallon in year one. A recent study from the Congressional Research Service found that every $1 per ton increase in a carbon tax roughly translates to a 1 cent per gallon increase in the price of gasoline. The current federal gas tax is 18.3 cents per gallon, meaning Wyden’s carbon tax would effectively double the gas tax in year one.

Biden’s own Secretary of Transportation, Pete Buttiegieg, has previously acknowledged that increasing the federal gas tax would violate Biden’s pledge.

“The President’s made a commitment that this administration will not raise taxes on people making less than $400,000 a year,” Buttigieg told Bloomberg Radio’s “Sound On” show in February. “And so that rules out approaches like the old fashioned gas tax.”

Sen. Joe Manchin ruled out a carbon in February

In February, Senator Joe Manchin (D-West Virginia) categorically ruled out a carbon tax while on video during a webinar:

"They want to talk about this as a penalty? Forget it. As long as I'm here and there's 50 votes and it takes 51 to pass it,” Manchin stated.

Democrats passing a carbon tax in the Senate would require a historical flip-flop from Sen. Manchin.

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5 Details on Dem Plan to Subsidize EVs for Wealthy

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Posted by Mike Palicz on Thursday, September 23rd, 2021, 6:01 PM PERMALINK

High-earners with an income of $800,000 could claim a $12,500 subsidy on their $74,000 luxury vehicle

Democrats on the House Ways and Means committee voted last week to advance their section of the $3.5 trillion blowout, including $42.5 billion in taxpayer-funded subsidies for the electric vehicle industry.

Included in the plan is a massive expansion of the individual tax credit for electric vehicles (EVs) set to cost taxpayers nearly $17 billion while disproportionately benefiting wealthy individuals in blue states.

1) Taxpayers would pay up to $12,500 in subsidies for the cost of a new EV

Section 136401 of Subtitle F would create a refundable tax credit up $12,500 for the purchase of a new electric vehicle. Individuals with gross incomes up to $400,000 and joint filers up to $800,000 can claim the full credit. The credit phases out by $200 for each $1,000 exceeding these income levels. The Joint Committee on Taxation estimates that this provision alone would cost more than $15.5 billion.

Democrats would allow the tax credit to apply to EVs with a manufacturer’s suggested retail price well within the range of luxury vehicles. The EV tax credit could be claimed on:

  • Sedans up to $55,000
  • Vans up to $64,000
  • SUV up to $69,000
  • Pick Up Trucks up to $74,000

 

2) Handout for Union Bosses

The full amount of the tax credit comes with a special handout for organized labor – $4,500 of the maximum $12,500 credit can only be claimed by individuals if the vehicle purchased is assembled in a U.S. facility operating under a union-negotiated collective bargaining agreement. This is a naked handout to a Democrat preferred special interest

Here it is, straight from the bill’s text:

“In the case of a new qualified plug-in vehicle which satisfies the domestic assembly qualifications, the amount determined under this paragraph is $4,500.”

“The term ‘domestic assembly qualifications’ means, with respect to any new qualified plug-in electric vehicle, that the final assembly of such vehicle occurs at a plant, factory, or other place which is operating under a collective bargaining agreement negotiated by an employee organization.”

3) Overwhelmingly benefits the wealthy in blue states

Data from JCT reveals EV subsidies overwhelmingly benefit the rich. More than 83 percent of current EV credits claimed go to tax filers with an annual income of $100,000 or more. Taxpayers with an annual income exceeding $1 million account for 8 percent of all credits claimed. This should come as no surprise given the sticker price of a new electric vehicle typically ranges from $40,000 - $80,000. Subsidizing luxury cars is targeted welfare for the wealthy.

Furthermore, EV subsidies primarily benefit Democrat-run states. Eight of the top ten states for EV sales are states represented by two Democrat Senators. Of the 250,000 all-electric vehicles  sold in the U.S.s in 2020, according to data from the Alliance for Automotive Innovation, Californians alone accounted for over 93,000 EVs purchases. For comparison, West Virginia had only 195 EVs registered in 2020. 

4) Lifts the 200,000 vehicles per manufacturer cap

The bill also does away with an important taxpayer protection in current law that phases out the current EV tax credit once a manufacturer sells 200,000 vehicles. This “cap” was put in place to ensure the tax credit supports an emerging technology rather than become a permanent subsidy. Democrats would now remove this safeguard, allowing individuals to claim the credit in perpetuity. 

5) New $2,500 subsidy for used EVs

The bill would also create a new tax credit capped at $2,500 for qualifying used EVs. This means taxpayers could be on the hook for up to $15,000 in payments on the same EV during the vehicle’s lifespan. The used EV tax credit is estimated to cost taxpayers an additional $1.3 billion.

To be eligible, vehicles must be purchased from a car dealership, cannot exceed a sales price of $25,000 and must be a model year at least 2 years earlier than the sale date. The credit is limited to individual buyers with an income up to $75,000 and $150,000 for married couples filing jointly.

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Democrats Want to Give $3.5 Billion to Jobless Climate Activists

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Posted by Mike Palicz on Friday, September 10th, 2021, 3:36 PM PERMALINK

Democrats are including at least $3.5 billion in taxpayer money for the creation of a uniformed “Civilian Climate Corps” according to the House Natural Resources Committee’s portion of Democrats’ $3.5 trillion spending package.

The Civilian Climate Corps (CCC) is designed as a make-work program for unemployed youths to be placed on the government payroll, paid to lecture taxpayers on the importance of climate activism and complete vital environmental projects like digging ditches and boosting enrollees' outdoor recreation.

The Democrat proposal is an attempted revival of the New Deal-era Civilian Conservation Corps that, according to a 2020 report from the Congressional Research Service, existed as a government employment program for unemployed males aged 18-25 in which “enrollees were recruited, hired, and trained by the federal government, worked under federal supervision, lived in government-run military camps, and received stipends paid for with federal funding.”

How taxpayer dollars are spent

According to bill text, Democrats will divvy up the funding across four separate agencies for the purpose of “carrying out education and job training projects and conservation projects.” Beyond funding levels, the legislation only stipulates that no more than 2 percent of appropriations shall be used for administrative costs.

  • The National Park Service will receive $1.7 billion in funding.
  • The Bureau of Land Management will receive $900 million in funding.
  • The Fish and Wildlife Service will receive $400 million in funding.
  • The Bureau of Indian Affairs will receive $500 million in funding.

 

Biden says the goal of the program is to boost young adults’ outdoor recreation

The creation of a new CCC was included as part of President Biden’s initial infrastructure agenda, which Biden recently described as a government program designed to help “young adults find work installing solar panels, planting trees, digging irrigation ditches and boosting outdoor recreation.”

Likely Structure of Civilian Climate Corps

While details are still forthcoming, the plan is modeled off of the 21st Century Civilian Conservation Corps Act introduced by House Democrats last Congress.The legislation provides further insight into Senate Democrats' proposal, the details of which are below:

Jobs are prioritized for individuals who have already used up unemployment benefits 

According to the text of the legislation, the President shall prioritize “unemployed citizens who have exhausted their entitlement to unemployment compensation,” over other citizens still “eligible for unemployment compensation payable under any State law or Federal unemployment compensation law.”

80 percent of funding used on employment, not conservation. 

While the Biden administration claims the proposal is about conservation and addressing climate change, the model legislation mandates that 80 percent of funding is to be used just on the salaries of staff.

“Not less than 80 percent of the funds utilized pursuant to paragraph (1) must be used to provide for the employment of individuals under this Act.”

Taxpayer-funded housing, clothing, and feeding of Climate Corps members

According to the legislation, taxpayers would be responsible for paying the cost of Climate Corps members’ housing, clothing, feeding, allowance, and medical expenses. Nothing screams good-paying jobs like an “allowance” from the government. Here it is straight from the bill’s text:

“The President may provide housing for persons employed in the Civilian Conservation Corps and furnish them with such subsistence, clothing, medical attendance and hospitalization, and cash allowance, as may be necessary, during the period they are so employed.”

Taxpayer-funded transportation to “work” for Climate Corps members.

Not only will the government provide food, clothing, housing, and an allowance, it will also pick up members of the Climate Corps and drive them to work for them. 

"The President may provide for the transportation of persons employed in the Civilian Conservation Corps to and from the places of employment."

Allows President Biden to seize private property through land condemnation.

President Biden would be empowered to seize public land deemed necessary to construct projects authorized under the bill.

“The President, or the head of any department or agency authorized by the President to construct any project or to carry on any public works under this Act, may acquire real property for such project or public work by purchase, donation, condemnation, or otherwise.”

Based on a failed 1930’s program that housed “employees” in military camps.

The effort is reportedly an attempt by the Biden administration to revive a long-defunct jobs program created in 1933 as part of the New Deal and similarly titled the Civilian Conservation Corps (CCC). In 1937, shortly after the CCC’s creation, Congress elected to phase out funding for the program, officially ending the CCC in 1942. The CCC appears to be the very first New Deal program defunded by Congress.

CCC was extremely accident-prone.

It turns out taking untrained youths and asking them to perform manual labor in the wilderness is a dangerous idea. “Given the nature of the work (“most of which consisted of manual labor”) and the inexperience of most enrollees, accidents were inevitable,” according to a National Archives report cataloging the accident reports of the CCC program.

According to the report, over 7,600 workplace accidents were filed during the CCC’s short existence and included several workplace deaths and life-threatening injuries. The report details cases of drownings and construction accidents.

Photo Credit: kthtrnr


Dems Ready Carbon Tax in Violation of Biden’s $400,000 Tax Pledge

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Posted by Mike Palicz on Friday, September 10th, 2021, 10:00 AM PERMALINK

House Democrats are proposing a new energy tax as a means of financing their $3.5 trillion ($3,500,000,000,000) tax and spending spree, according to a fact sheet released by Democrats on the House Energy & Commerce Committee.

The tax will automatically ratchet up each year at a rate of 5% above inflation. This is a tax increase on autopilot without congress having to hold a vote on it each time.

The plan would impose a regressive carbon tax on methane emissions from oil and gas development, likely amounting to a tax increase of $10-$15 billion annually. This tax will be paid for by American households in the form of higher energy bills and higher costs of everyday products. A recent letter to Congress from the American Gas Association warned that the methane tax would amount to a 17% increase on an average family's natural gas bill.

This tax increase would violate President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. Officials within the administration have repeatedly stated taxes that raise consumer energy prices are in violation of President Biden’s $400,000 tax pledge.

A recent Reuters story on Democrats’ proposals for new energy taxes even detailed how “the White House is concerned the Democrats' proposal will raise prices on a host of consumer goods, from cars to appliances, and conflict with Biden's pledge not to tax any American earning less than $400,000 per year.”  

The Democrat proposal is modeled off of legislation introduced earlier this year by Sen. Sheldon Whitehouse (D-R.I.) that would tax methane starting at a rate of $1,800/ton and then set to increase on autopilot at 5% above inflation annually.

Once this tax mechanism is in law, Democrats will gradually add other greenhouse gases and build a full-fledged carbon tax regime, with the cost burden shouldered by American households.

The same legislation also includes a market distorting import tax on crude oil and natural gas from other countries that would further increase consumer costs and likely lead to retaliatory actions from American trading partners in the form of tariffs and import taxes of their own.

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Dems Eye National Plastic Tax

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Posted by Mike Palicz on Friday, September 3rd, 2021, 6:33 PM PERMALINK

Democrats may impose a national plastic tax to finance their $3.5 trillion ($3,500,000,000,000) tax and spending spree, according to a leaked Senate Finance Committee document.

The document lists a "Plastics Excise Tax" which will "impose a $.20 per pound fee on the sale of virgin plastic." Virgin plastic is a vital material in medical devices and products, clothing, toys, and thousands of household products. The authenticity of the document was confirmed by NBC News.

"The Democrats' tax on plastics is a tax on every middle income American 50 times a day," said Grover Norquist, president of Americans for Tax Reform. "For Dustin Hoffman in The Graduate, the answer was 'plastics.' The question was, 'What will Democrats tax next?'"

The proposed tax hike appears to be modeled off of legislation introduced in early August by Sen. Sheldon Whitehouse (D-Beach Club), one of the most progressive members of the Senate.

The burden of the tax would be borne by consumers in the form of higher prices for everyday household goods.

Violates President Biden’s $400,000 Tax Pledge

The national plastic tax would violate President Biden’s pledge not to raise any form of tax on anyone making less than $400,000 per year. Even the White House has raised this concern. A recent Reuters story detailing Democrats proposed carbon border tax claimed, “the White House is concerned the Democrats' proposal will raise prices on a host of consumer goods, from cars to appliances, and conflict with Biden's pledge not to tax any American earning less than $400,000 per year.” The same logic applies to the plastic tax now under consideration.

Additional Taxes Democrats Plan to Impose:

Trillions in new tax increases on working families and small businesses. The recently-passed budget resolution is the first step toward the Biden plan to raise taxes by $3 trillion over the next decade. Some of these tax increases include: 

  • At least 2 million small businesses will get hit by Biden’s tax hikes. This includes over 1.4 million small businesses organized as c-corporations, family-owned farms impacted by the repeal of step-up in basis, and pass-through organizations which would be hit by the increase of the top marginal income tax rate to 39.6 percent.  
     
  • Increasing the corporate tax rate from 21 percent to 28 percent, which will be passed along to working families in the form of higher prices, fewer jobs, and lower wages. This will give the U.S. a combined state-federal rate of 32 percent, higher than our foreign competitors including China, which has a 25 percent corporate tax rate. 
     
  • Raising the corporate income tax rate will hit Americans with higher utility bills as the country tries to recover from the pandemic. Customers directly bear the cost of corporate income taxes imposed on utility companies. Investor-owned electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. Therefore, if Democrats raise the corporate tax rate, they will have voted to raise utility bills. [Americans for Tax Reform has compiled 300 examples of utilities passing tax savings along to customers.] 
     
  • Doubling the capital gains tax to 43.4 percent, a rate more than double China’s capital gains tax. 
     
  • Taking away step-up in basis and imposing a second death tax by taxing unrealized capital gains at death. This will disproportionately fall on family-owned businesses. Taking away step-up in basis has already been tried and failed. In 1976, Congress eliminated stepped-up basis, but it was so complicated and unworkable that it was restored in 1980. 
     
  • Imposing a 15 percent minimum tax on “book income” that will disallow the use of important deductions and credits that help promote job creation and economic growth. 
     
  • Increasing the top income tax rate to 39.6%, a tax increase that will fall on small businesses. As noted in a recent Senate Finance Committee report, "... in 2016, only 42 percent of net business income in the United States was earned by corporations, down from 78.3 percent in 1980." 
     
  • New taxes on American energy including a tax on manufacturers based on their methane production and a carbon border tax. These tax increases will be passed along to families and businesses in the form of higher prices. 
     
  • Creating a 21 percent global minimum tax, higher than the 15 percent global minimum tax the Biden admin is pushing other countries to enact. Because existing law denies foreign tax credits, this could see businesses pay a top rate of 26.25 percent. 
     
  • Repealing the deduction for foreign-derived intangible income, a tax cut that encourages businesses to house their intellectual property in the United States. 


$80 billion in new IRS funding to hire 87,000 new agents. This would allow the IRS to audit and harass small businesses and American families for an additional $787 billion. It would hire enough new IRS agents to fill Nationals Park twice. 

It would help implement the Biden plan to create a new comprehensive financial account information reporting regime which would force the disclosure of any business or personal account that exceeds $600. 

Not only would this include the bank, loan, and investment accounts of virtually every individual and business, but it would also include third-party providers like Venmo, CashApp, and PayPal. 

New IRS funding will also be a boon to the union that represents IRS employees. This union, the National Treasury Employees Union (NTEU), shovels 97 percent of their money into Democrat campaign coffers. 

IRS employees also regularly perform union work on the taxpayer’s dime. In 2019, 1,421 IRS and other Treasury Department employees spent 353,820 hours of taxpayer-funded union time (TFUT), costing the federal government $17.27 million. 

Socialist healthcare policies such as H.R. 3, the Pelosi plan to impose new taxes and government price controls on American medical innovation. This legislation creates a 95 percent excise tax on manufacturers and imposes an international reference pricing scheme that directly imports foreign price controls into the U.S.  

This proposal will reduce access to new, lifesaving and life-preserving medicines. According to research by the Galen Institute, the U.S. had access to 90 percent of new cures launched between 2011 and 2018, a rate far greater than comparable foreign countries. For instance, The United Kingdom had access to 60 percent of medicines, Japan had 50 percent, and Canada had just 44 percent. 

It will also threaten high-paying manufacturing jobs across the country at a time when we are just emerging from the economic wreckage from the pandemic. Pharmaceutical manufacturers invest $100 billion in the U.S. economy every year, directly supporting 800,000 jobs including jobs in every state.  

Trillions in new welfare spending that will allow the federal government to promote woke policies. This includes: 

  • Hundreds of billions in funding for “free” pre-K and community college to “close the equity gap.” Part of this funding will ensure classroom environments that are “inclusive for all students.” 
     
  • $10 billion to create a Civilian Climate Corps. The program will help set the stage for the Green New Deal and give progressive activists free government housing, transportation, and salaries to “advance environmental justice.” 
     
  • New spending to make childcare “affordable,” and to promote “culturally and linguistically responsive environments.” 
     
  • New federal subsidies to improve “housing affordability and equity” and to encourage green and sustainable housing. 
     
  • Lowers the Medicare eligibility age and expands coverage to Dental, Vision, and Hearing. 
     

This $3.5 trillion spending package is a reckless proposal that will lead to increased taxes on working families and small businesses and trillions in new spending on welfare programs and woke policies.  

Americans for Tax Reform urges all Members of Congress to oppose all of the above tax increases.

Photo Credit: Third Way

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