Bloomberg Reveals His Plan of Big Tax Increases to Undo Trump’s Tax Cuts

Democratic presidential candidate Michael Bloomberg is proposing massive tax hikes if he is elected.

“The plan I am releasing today raises rates on wealthy individuals and corporations, closes loopholes, cracks down on tax avoidance, expands the estate tax, and reduces the tax advantages that investors have over workers,” the Democratic presidential candidate and former New York City mayor said in prepared remarks.

Bloomberg proposes restoring the top income tax rate to 39.6%, from 37%, and closing the new tax break for businesses that file through the individual side of the tax code. He is also calling for taxing capital gains at income tax rates for taxpayers earning more than $1 million a year. This means that capital gains would likely be taxed at 39.6%. Currently, the highest tax rate for long-term capital gains is 20%.

A 5% surtax would be levied on incomes above $5 million, and the threshold for paying the estate tax would be lowered so that more taxpayers will be liable for the tax.

For companies, the corporate income tax rate would be raised from 21% to 28%. Before the 2017 tax bill, the corporate income tax rate was 35%.

Bloomberg promises to use the money generated from the additional taxes to fund, “critical priorities like health care, infrastructure, education, climate resilience, and affordable housing”.

The Washington Examiner also notes that although the tax cuts are large, they pale in comparison to the hikes that Bernie Sanders and Elizabeth Warren propose.

Bloomberg and other Democrats want to undo Trump’s tax cuts.  The Heritage Foundation outlines the impact these tax cuts have made.

The 2017 Tax Cuts and Job Act lowered the federal corporate tax rate to 21 percent. The combined federal and state U.S. corporate tax rate fell from almost 40 percent, the highest rate in the developed world, to 24.9 percent.

The new lower tax rate has made American businesses competitive again.

Hopefully the American people do not fall for this tax the rich scheme.  Sure, that sounds tempting and painless.  But we all know that higher taxes on the rich and businesses would be passed down to the middle class, working class, and poor in the form of higher costs of goods and an overall slower-growing economy.

Trump finally made America competitive again by lowering the business tax rate and reducing regulations.  Let’s hope we don’t undo that excellent work that was fought for very hard.