Sen. Charles Schumer, (D-N.Y) makes opening remarks during a hearing of the Senate Subcommittee on Immigration and the National Interest, in Washington, D.C., Jan. 20, 2016. (CBP Photo by Glenn Fawcett)
Do you remember when Democrats were against raising taxes during a recession? Maybe that’s why the Biden administration has been so adamantly opposed to admitting that the country is at risk of a recession. Based Politics reports on the past statement of Schumer and Manchin, writing:
2. Chuck Schumer
The Senate Majority Leader is throwing his full weight behind the Biden-Manchin plan. Yet Schumer has in the past explicitly criticized the notion of raising taxes during a recession.
As John Kartch notes for Americans for Tax Reform, Schumer said in 2008: “If we’re in a recession and we’re in a difficult economic time, I don’t think Sen. Obama or anyone else is going to raise any taxes. You don’t want to take money out of the economy when the economy is shrinking.”
3. Joe Manchin
Senator Joe Manchin, himself the chief architect of the Democrats’ latest plan, has repeatedly denounced the notion of hiking taxes during a period of economic decline. Again per Americans for Tax Reform, Manchin said in 2010, “I don’t think during a time of recession you mess with any of the taxes, or increase any taxes.”
When you compare the words of these prominent Democrats to the party’s actions today, the hypocrisy becomes clear. What would they say in defense of themselves?
Well, Joe Manchin has, rather absurdly, argued that their legislation “does not raise taxes” and only “closes loopholes.” This argument is either remarkably ignorant or deeply disingenuous.
Manchin and company also say that their plan will increase tax revenue by more than $700 billion. Yes, $700 billion more will come into Uncle Sam’s coffers, they claim. But all without raising taxes!
Um… you can’t raise hundreds of billions in new revenue without raising taxes. That’s not how math works.
Some of what they’re doing could arguably be categorized as “closing loopholes,” but certainly not all.
The “corporate minimum tax” included that’s expected to raise $315 billion very explicitly raises taxes on corporations. It does away with the current system—where some corporations are lawfully not owing much in taxes due to intentional exemptions like those promoting investment write-offs—and implements a new flat-minimum rate of 15%.
It’s very explicitly an increase in their taxes owed, not just an increase in enforcement or crackdown on tax evasion.
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