Democratic Tax Plan

Chris EdwardsHouse Democrats aremoving ahead with a  huge bill to raise taxes on businesses and individuals, increase welfare handouts, and micromanage numerous industries. It is a complex proposal that would increase taxes $2.1 trillion over 10 years with 66 provisions and would distribute tax breaks and spending with another 79 provisions.The following table is my summary of the bill based on theofficial estimates. The bill would raise $2.073 trillion in taxes, distribute $1.202 trillion to infrastructure, green, and safety net programs, and leave $871 billion in higher taxes to be used for other spending in the overall Democratic agenda. Of the $1.202 trillion, 43 percent is tax cuts and 57 percent is spending through refundable tax credits.Here is a  brief summary of the Democratic tax plan:Subtitle F, Infrastructure. The main provisions are subsidies for infrastructure bonds, building rehabilitation, and the low ‐​income housing tax credit (LIHTC). The LIHTCis an awful, fraud ‐​ridden program that mainly benefits developers. That the tax bill would expand it by $29 billion illustrates the absence of evidence‐​based policymaking in Washington.Subtitle G, Green Energy. The main provisions are subsidies for electric utilities, biofuels, energy efficiency, and electric vehicles. The subsidies are mainly in the form of tax credits, which are nearly always complex and difficult to administer.Subtitle H, Safety Net. The main provisions would expand the child tax...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs