The “Budget for All” contains just about every sort of tax increase imaginable. It would, of course, allow the top-end Bush tax cuts to expire, as well as create five new tax brackets — 45%, 46%, 47%, 48%, and 49% — for “millionaires and billionaires.” In addition, House liberals would break new ground by slapping a European-style wealth tax of 0.5% on fortunes of $10 million or more. The plan also contains a bank tax and a financial transaction tax.
But it’s not just the wealthy and bankers who would get pinched. These Democrats would also raise income taxes on the broad middle. The CPC plan would “allow the 28% and 25% brackets to sunset once the economy is on solid footing, in 2017 and 2019, respectively.” That means higher taxes on families making over $70,000 a year — a big, fat, middle-class tax hike. And some of those families would also be paying more for energy thanks to the carbon tax that’s also in the CPC plan.
Amazing, these progressive Democrats don’t think all those tax hikes will hurt economic growth. Not one bit. Why? First, it’s now the liberal economic consensus that tax rates below 70-80% don’t hurt growth. Second, even if those tax hikes unexpectedly did trim growth a smidgen, they would be more than offset by a new $2 trillion stimulus plan full of such supposedly pro-growth measures as clean energy tax credits, advanced manufacturing tax credits, and a “Child Care Corps.”
Regardless of whether Obama could implement such a plan in a second term, this agenda gives Americans a pretty clear vision of where liberals want to take them over the long term.