House Democrats find themselves vulnerable to incredible election risk after repeating a major misstep from the past. House Democrats are currently pushing a major tax hike that will certainly die in the Senate, this will leave those members of the house holding the bag and incredibly disfavorable in the 2022 midterm elections.
This situation seems shockingly similar to the one Democrats faced in 1993, when then Vice President Al Gore sought his infamous BTU Tax which would have dramatically increased prices for all goods and services. The bill cleared the House by one vote but failed in the Senate.
The next year, House Democrats lost a record setting 52 seats, because their Republican opponents were able to point to their Democrat rivals’ support of the BTU tax.
Democrats today face a similar problem. If their multi trillion dollar spending spree goes through then tax rates would also get raised by the greatest amount since 1968, harming everyday American businesses and families who are still reeling from government imposed pandemic lockdowns. If the Democrats get their wishes of higher taxes, they may face a cataclysmic defeat in November 2022.
Once again on this time around, the Democrats are pushing energy taxes which will affect every American household great or small. Furthermore, Biden’s tax plan violates his pledge that only the rich-of-the-rich will see tax increases as the current legislation targets many households earning less than $400,000.
The radical tax hike the Democrats seek are literally worst than those in communist countries such as China. If Biden and Co. get their way then the corporate tax rate will sit at 26.5%, when combined with state taxes, the average business would be submitting a full 31% in taxes, far above the 25% rate of communist China and the developed world average of 23.5%.
Again, apparently in competition with communist China to see who can be the most radical, American Democrats are pushing for a capital gains rate of 28.8%, almost one-and-a-half times that of China’s 20% rate.
The Democrats would be wise to consider the 1993 BTU Tax situation which cost them power across the board last time. Most of the Democrats in Congress can probably remember that day personally to be honest. But Democrats hate history, perhaps there’s a revisionist spin they’ve put on their losses in 1994.
It’s good news either way, the radical tax plan doesn’t even have full support by all Democrats on Capitol hill and will almost certainly die, and they will have soiled themselves in front of a bitter and resentful American public who’s last wish was higher taxes.
Author: Claude Flores