Democrats in Disarray Over the Biden-Harris Tax Hikes

Joe Biden and Kamala Harris’ plan to increase taxes in order to pay for their massive $4 trillion “infrastructure” packages has vulnerable Democrats panicking over the likely reaction from their constituents, according to a report from The Washington Post.

The Washington Post: “Democrats said some donors are anxious about the political ramifications of raising taxes before the midterms, especially given the party’s tough odds to hold onto the House. Rep. Sean Maloney (D-N.Y.), chair of the Democratic Congressional Campaign Committee responsible for party fundraising, has privately warned the tax plans could hurt vulnerable House Democrats up for reelection in 2022…”

The Washington Post reporting indicates that there are Democrats who have reservations or outright opposition to many of the largest provisions contained in the plan, including raising the corporate tax rate to 28%, the lack of restoring the SALT deduction, international tax changes, and significantly increasing capital gains taxes. The widespread opposition is particularly alarming for Democrats given their extremely thin majorities in Congress. 

In fact, more than a dozen Democrat lawmakers have spoken out against the Biden-Harris administration’s plan to raise the corporate tax rate by 33% or have ruled out voting for Biden’s tax hikes unless the SALT deduction is restored. 

Representative Josh Gottheimer (D-NJ): “No SALT, no dice. We need those fixes too.”

A group of 13 Democrat lawmakers also sent a letter to House Democratic leadership last week pushing back against Joe Biden and Kamala Harris’ capital gains tax hike that would negatively impact farmers.

The Wall Street Journal: “‘I’m laying down the marker, and I’ve got 13 colleagues who say we agree,’ Ms. Axne said. ‘And many of us come from really difficult seats.’”

For a full breakdown of Congressional Democrats who have publicly and privately expressed opposition to elements of Biden’s infrastructure proposals, click here.

With razor-thin majorities in the House and Senate, Democrats can’t afford to lose support from their own party. This problem is compounded by the fact that Joe Biden and Kamala Harris have made no effort to garner Republican support for their proposals.

Whitney Robertson, Deputy Press Secretary at America Rising PAC: “Democrats are sounding the alarm over the Biden-Harris tax hikes because it’s exactly what Republicans have said it would be — a middle-class tax hike that will hurt hard-working Americans across the country and further hamper economic growth.”