Americans for Tax Reform President Grover Norquist appeared today on Fox Business Network’s Mornings with Maria to discuss the Democrats’ socialist tax-and-spend plan, legislation they’ve named, “Build Back Better.” Norquistwarned the bill will lead to higher taxes, reduced American global competitiveness, and tax carveouts for Democrats’ special interests.
Norquist explained that the bill would give the US the highest top personal income tax rate in the OECD, the 3rd highest capital gains rate in the OECD, and create numerous tax carveouts for left wing special interests:
“Well, it’s not good news and it could get worse. Remember, the Senate gets to play with this… The ideas that we worried about, like spying on your bank account, didn’t pass the House, but Biden still wants to do it and the Democratic Senators still want to do it. So, keep in mind, the list of horribles from the House: highest personal tax rate in the developed world, capital gains tax going up to 37 percent (the highest since Jimmy Carter), and then a series of targeted tax cuts – subsidies – that are political payoffs. Billions for trial lawyers to sue people… billions to the press… a tax cut for the rich people in blue states [through a SALT expansion].”
Norquist also noted that the bill’s tax hikes on corporations will be primarily felt by middle-class workers and consumers:
“One trillion dollars in “business taxes,” or corporate income taxes – that’s just a disguise tax on wages and higher prices. 70 percent of the corporate income tax is paid by workers directly in lower wages. We saw the opposite of that when Trump and the Republicans cut the corporate income tax and wages went up. Raise the corporate income tax, wages go down again. Politicians love the corporate income tax because it’s a way of hiding that they’re taxing the middle class.”
Norquist also explained that this bill is part of the Biden administration’s larger goal to impose a global minimum tax on corporations across the world:
“The Democrats look at what’s happening to California and New York because people can choose to move to Texas and Tennessee and Florida. They realize that if they have the high taxes they want on Americans they have to protect against companies starting up in other countries, which is what’s going to happen – they’re going to drive investment overseas and they think with this corporate minimum tax that they can reduce that. Do you really believe that China will impose that tax on their businesses? Or Russia? It does give the Russians and the Europeans a veto over our tax cuts.”