Democrats are looking to transform America while they have the chance.
But there’s going to be a terrible cost.
A leaked document revealed a piece of very bad news for Nancy Pelosi.
Democrats are spending more money than the American government has ever spent before.
They have proposed a $3.5 trillion budget that would vastly increase socialism in America.
This is at a time of economic recovery when the economy is in danger of overheating.
In order to pay for the increased spending, Democrats are proposing huge tax hikes.
A summary of the proposals was leaked on Sunday showing what Democrats are planning.
Democrats are hoping to raise $1.9 trillion from corporations and rich Americans.
One of the biggest increases would increase taxes in the top tax bracket from 39.6%, up from 37%, which Democrats say would raise $170 billion in revenue over the next decade and an additional 3% tax on Americans earning more than $5 million to raise another $127 billion.
The top capital gains rate in the proposal would go up by 5% to 25%, raising about $123 billion. Democrats would also change what an investing earning qualifies as to raise another $252 billion.
There would also be a hike in the estate tax to raise about $50 billion in revenue.
In addition, the proposal increases the corporate tax rate from 21% to 26.5%.
“The overall total of every increase adds to about $2.9 trillion, leaving a $600 billion gap between the new revenue and the budget’s 10-year cost. But the plan assumes that the new changes will spark economic growth and increase revenues even further, in theory canceling out the shortage.” The Daily Caller reported.
Senate Republican leader Mitch McConnell said the proposal is “the last thing American families need.” All GOP lawmakers are expected to vote against it.
With Democrats’ razor-thin majority in the Senate the fate of the proposal hangs on Manchin who is wavering on whether to vote for the bill or not.
Sen. Joe Manchin, D-W.Va., has suggested it’s time for a “strategic pause.”
“I cannot support $3.5 trillion,” Manchin said Sunday, noting that it would hurt American businesses to raise the corporate tax rate above 25%.
Manchin also worried about inflation.
“We don’t know about inflation, we know it’s running rampant right now, I can tell you in West Virginia inflation is running rampant, and on top of that, the challenges we’re going to have, geopolitical challenges, shouldn’t we be prepared?”
Speaker of the House Nancy Pelosi is unwilling to negotiate with Manchin.
“Obviously, I don’t agree,” Pelosi told CNN when asked about Manchin’s comment.
Democrats are clearly optimistic that Manchin will cave and give them his vote without compromise like he did with COVID spending and allow them to change America.
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