October 1, 2021
Speaker Nancy Pelosi and President Joe Biden continue to write their massive $3.5 Trillion Budget plan behind closed doors, though there is a draft version of the 2,500-page bill that was made public a few days ago which serves as the basis for their closed-door negotiations.
At this point here’s some of what we know about the House version of the bill….
Demands that your bank or credit union report to the Internal Revenue Service (IRS) any transaction you make that exceeds $600, and the bill gives the IRS $80 billion in additional tax money for tax enforcement. It’s important to note that the IRS has a poor track record when it comes to safekeeping of confidential tax information and political targeting;
A $700,000 fine for businesses that failed to mandate 100% vaccination for their employees – 10 times higher than the $70,000 President Biden imposed (page 168);
Provides over $630 billion to Green New Deal initiatives including billions in grants and handouts to liberal organizations, funded in large part by tax increases on small businesses;)
As the largest tax increase in American history, the tax changes include raising taxes on successful small businesses, creating new financial incentives for U.S. companies to move operations overseas, increasing taxes on most middle income Americans, and creating new tax breaks for Americans making $800,000 a year (details here). Highlights include:
75% of middle income families will face higher taxes according to the analysis by the House Ways and Means Committee;
This bill ends up imposing higher taxes on successful mom and pop small businesses than on large multinational corporations;
Raises taxes on U.S. corporations to a rate that exceeds that of Communist China; and
Includes tax law changes that create incentives for U.S.-based corporations to relocate plants, workers and headquarters overseas (recall the corporate inversion policies of the Obama years when many large companies were moving overseas).
Provides amnesty and a path to citizenship for eight to eleven million illegal immigrants and repeals limits on chain migration opening the immigration flood gates to an unlimited number of distant family members (while the Senate Parliamentarian has raised objections to some of these provisions there is no indication it will be removed from the House bill);
Provides two years of “free” college to illegal immigrants (pages 93 and 134);
Exempts all spending in the bill from the pro-life Hyde Amendment to ensure that there are no pro-life restrictions in place for any of the $3.5 trillion spent in this bill;
Creates a new federal tax deduction of $250 a year for union dues payments;
$7.5 billion is spent on a “Civilian Climate Corps,” $5 billion for “climate justice” block grants, an additional $1.4 billion increase for climate change research, $12 billion for a federal fleet of electric vehicles and the list goes on;
Hundreds of millions of dollars more for a litany of liberal causes and groups including for quasi political organizing efforts and “community organizing;” and
Much, much more which can be found here in the 2,500-page draft bill.
Oh, yes and don’t forget, one last point, they have told us that this bill is free. They say it won’t cost anything because it’s all paid for.
This bill must be defeated as it is written with little understanding of basic economics, penalizes success, “rewards” those who create jobs and build businesses in America by raising their taxes, and is based on a budget plan increasing the national debt from $28 trillion today to $40 trillion in 2031.
We have serious long-term budget challenges with Medicare and Social Security, and I believe it is wisest to make those programs a higher priority to ensure that they are financially secure for the future. Unfortunately, the budget plan being put forward by Speaker Pelosi will further jeopardize those important programs as well.
Please visit www.posey.house.gov/survey2021 to share your views with me on issues before Congress and to sign up for our periodic newsletters and telephone townhall meetings. Please reach out to us if we can be of service to you. Sincerely,
Member of Congress