House Democrats say the wealthiest individuals and corporations will pay more in taxes, to pay for sweeping new investments in social spending.
House Ways and Means Committee chairman Richard Neal, D-MA, says success should be celebrated.
“We can also ask the biggest companies and the ultra wealthy to contribute a more to the common good,” he said Tuesday.
Tax provisions in a $3.5 trillion spending plan would raise the top tax rate on incomes over $400,000 a year. The corporate tax rate would also go up. That, top committee Republican Kevin Brady warns, threatens U.S. jobs.
“Who gets hurt most? Workers and communities pay the price when jobs move overseas,” Brady argued.
Grover Norquist, president of Americans for Tax Reform, agrees with Brady. He says the Dems' tax hikes will make the U.S. less competitive on the global market.
“Investing in a company in America will be more highly taxed than communist China and more highly taxed than the European average,” he says. “This is a tax and spend package built to buy political votes, to get money into the hands of campaign contributors who can then recycle it back into the hands of the politicians.”
Democrats can't pass a bill expanding health care, education and climate change spending without Republican support.