EXCLUSIVE: The biggest conservative caucus in the House has already released a game plan to fight President Biden’s $2 trillion spending package and accompanying tax hikes, signaling just how tough it will be for Democrats to garner bipartisan support for the massive bill.
The Republican Study Committee (RSC) drafted a new memo obtained first by Fox News to circulate to conservative circles outlining point-by-point opposition to Biden’s newly unveiled tax proposals.
The RSC dubs Biden’s proposal a “trojan horse presented as an infrastructure package that harbors socialist and Green New Deal priorities.” And to pay for the new investments in roads, bridges and more, Biden is proposing new tax increases on businesses that conservatives say will stifle job growth and send more jobs overseas to China.
The RSC steering committee already took an official position to oppose Biden’s spending tax plan on Wednesday, the same day the White House announced its “once-in-a-century capital investment” in U.S. infrastructure.
In the 2020 fiscal year, the federal government ran an annual deficit of $3.1 trillion — more than triple the deficit of the previous year, according to the Bipartisan Policy Center. The cumulative national debt now sits at $28 trillion.
The memo highlights each of the tax changes Biden proposed — plus others that may be on the horizon — and argues the measures would “hurt American families.”
“The Republican Study Committee will continue to lead the fight against these dangerous measures that would cripple our economic recovery and place additional burdens on American families,” said Rep. Jim Banks, R-Ind., the chairman of the Republican Study Committee.
In order to pay for this legislation, Biden proposed the “Made in America Tax Plan” to raise taxes by $2 trillion over 15 years. The plan would hike the corporate tax rate to 28% from 21%, eliminate tax breaks for oil and gas companies, institute a 15% minimum “book income” tax on a corporation’s profits for financial-reporting purposes and increase the global minimum tax on U.S. corporations to 21% from 13%.
The RSC says setting the corporate tax hike to 28% would be “higher and more punitive” than China (25%) and would “exacerbate the transfer of jobs and manufacturing to Communist China.”
As for the new book income tax, the RSC memo dubs it a “double tax” on a company’s investments and savings that “would work to send millions of jobs overseas.” And eliminating certain tax breaks to fossil fuel companies would “strike at the heart of the U.S. economy” in order to fund a “green agenda,” the memo argues.
The memo also warns that the tax proposals may be just the beginning since Biden and congressional Democrats have expressed past support for repealing more of the Republicans’ 2017 tax cut law, beyond the corporate taxes.
In pitching his infrastructure plan Wednesday, Biden fashioned the $2.3 trillion proposal as a major investment in America’s future prosperity that will increase jobs and make the U.S. more competitive with China.
“It’s not a plan that tinkers around the edges,” Biden said in a speech in Pittsburgh. “It’s a once-in-a-generation investment in America, unlike anything we’ve seen or done since we built the Interstate Highway System and the Space Race decades ago. In fact, it’s the largest American jobs investment since World War Two. It will create millions of jobs, good-paying jobs.”
Fox Business’ Megan Henney and Brittany De Lea contributed to this report.