Daines: Democrats’ Reckless $3.5 Trillion Tax & Spending Spree will Increase Taxes on Montana Workers, Families, Small Businesses
U.S. SENATE— U.S. Senator Steve Daines today spoke on the floor of the United States Senate urging his colleagues to oppose Congressional Democrats’ reckless $3.5 trillion tax and spending spree bill. The Democrats’ proposed bill would push America down the path of socialism and force Montanans to pay for it through massive new tax hikes.
To watch the full speech, click HERE.
Daines’ remarks as prepared for delivery:
“I rise today to join my colleagues in speaking out against the Democrats’ reckless $3.5 trillion dollar tax and spending spree bill that Chuck Schumer and Nancy Pelosi are rushing through Congress.
“This is the largest spending bill in our nation’s history.
“Through this bill, Congressional Democrats are trying to reshape the very foundation of America. They’re trying to pass their far-Left policies and push the United States of America down the path of socialism.
“This reckless tax and spending spree bill is packed full of tax increases and new spending programs that will kill hundreds of thousands of jobs and reduce economic growth.
“In fact, according to the Tax Foundation, it would reduce take home pay for low and middle-income Americans.
“It will expand and insert the federal government into every aspect of Montanans’ and Americans’ lives.
“It will bankrupt our country.
“You know… I’m not actually sure that Congressional Democrats understand the impacts of their efforts and what burden this tax and spending will put on Montana families, small businesses, farmers and ranchers, and future generations.
“A few weeks ago, I heard one House Democrat actually say, ‘we can’t go bankrupt because we have the power to create as much money as we need to spend…’
“Those are the actual words of a Democrat in the United States House of Representatives who will soon vote on this legislation.
“It’s baffling. Montanans and the American people know money doesn’t grow on trees… I would hope Congressional Democrats know that as well.
“This mindset is terrifying for the future of our country.
“The Democrats’ reckless spending bill comes at a time when Montanans are already facing skyrocketing prices on everything from gas to groceries.
“Montanans are feeling the pain in their pocketbooks every day because of record high inflation numbers.
“This is a direct result of the Democrats’ and President Biden’s tax and spending problem.
“Democrats already flooded the economy with nearly $2 trillion in new spending earlier this year and now inflation is at a 13-year high.
“Think about this… even if we experience NO additional rise in inflation for the rest of the year, Montanans would still be hit with an almost 5 percent increase in costs for the year.
“The absolute last thing we should be doing is spending trillions more of taxpayer dollars on top of the $2 trillion partisan spending package that Democrats embarked on in March.
“We know doing so could send inflation much, much higher.
“While inflation is a tax on ALL Montanans through rising prices, Democrats have many more tax hikes planned as they look to pay for this spending spree and Montana families, small businesses, and farmers and ranchers will be footing the bill.
“I’ve heard some of my Democratic colleagues suggest this bill must be ‘paid for.’
“What does that mean? Well it’s simple… it means the Democrats’ reckless tax and spending spree will be ‘paid for’ by massive tax increases.
“Let’s go over a few of the tax hikes Montanans could face if Democrats continue on this reckless path…
“For starters, this bill is an absolute assault on small businesses… it would gut the 20 percent small business tax deduction placing small businesses at a disadvantage.
“This deduction benefited more than 21 million businesses in 2019, generating $66 billion in tax savings.
“These savings help small business owners hire new employees or offer raises and bonuses.
“Removing this tax benefit would make it harder for them to expand and succeed against larger competitors.
“The Democrats’ reckless tax and spending spree bill would also increase the top income tax rate to nearly 40 percent and drastically lower the income thresholds for the top tax brackets.
“Since most small businesses are structured as what’s known as pass-throughs, meaning, business profits are taxed as income, this tax hike could devastate our small business owners.
“These two provisions alone would hurt Montana small businesses drastically… and with over 99% of Montana businesses being small businesses, we cannot let this happen.
“This would destroy the livelihoods of our local communities and local economies.
“The top combined tax rate for pass through businesses would rise above 50 percent in 40 out of 50 states, including Montana.
“This reckless spending bill will also supercharge marriage penalties in the tax code.
“You heard that right… buried in the Democrats’ massive tax and spending spree is also an attack on marriage.
“Married couples could be facing higher taxes… simply because they’re married.
“Democrats have also proposed the elimination of what’s known as stepped up basis… which is a backdoor death tax that will hit Montana family farms and ranches particularly hard.
“Montana ag is part of our way of life. Our farmers and ranchers work hard to put food on the table for their families, our great state, the country and the entire world.
“The last thing Montana farmers and ranchers need are more taxes – and that’s what the Democrats are trying to do.
“Senator Thune and I led a letter to President Biden, which was signed by every member of the Republican conference, urging him to reconsider this proposal.
“As of now, this is not currently in the House Democrats bill, but unfortunately the President and many of my colleagues on the other side of the aisle have continued to insist on this being included in their bill.
“This reckless proposal will also damage our international competitiveness by raising the corporate tax rate to 26.5 percent.
“Combined with state corporate tax rates, the average corporate tax burden would rise to 30.9 percent, which would be higher than China… and one of the highest rates in the world.
“Mr. President… do you know who is cheering about this tax increase and this provision? China… they know the Democrats’ tax increases will force American businesses to send American jobs overseas.
“That is the last thing we need…. we need to be supporting American businesses, our workers, our farmers and ranchers and our hardworking families.
“The Democrats’ reckless tax and spending spree bill does the opposite.
“It puts China and our global competitors first.
“Mr. President, for all of these reasons, and many more, I am very concerned about what will happen if this dangerous proposal becomes law.
“I intend to fight vigorously against it every step of the way.
“Thank you. I yield back my time.”
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