Senator Patty Murray’s (D–WA) budget tax plan directly calls for $975 billion in new tax increases over the next decade. Indeed, the Senate budget is only a framework document, but it clearly lays out who should pay the higher taxes.
The Democratic majority wants higher taxes by “eliminating loopholes and cutting unfair and inefficient spending in the tax code for the wealthiest Americans and biggest corporations.”
These tax increases in Senator Murray’s proposal would likely move in the opposite direction of pro-growth tax reform, which would not exclude reducing marginal tax rates for individuals and small businesses.
A recent Heritage report estimates the likely economic effects of Senator Murray’s tax proposal. The tax increases would slow economic growth and affect all Americans, not just those considered “wealthy.” The $1.4 trillion reduction in total economic output and 853,000 (annual) fewer jobs would hurt American households’ overall wealth and their opportunity to grow their income.
Aggregate after-tax household income would decline an average of $180 billion annually. Declining asset values and lower income would translate to nearly $3,000 less per year in household income for a family of four.
Senator Murray’s tax proposal not only fails to address the main drivers of the federal debt; it adds insult to injury to American businesses, individuals, and families.