Cargo ships anchored off the coast of California. Containers piled up at the ports. Empty shelves at stores across America. And what do Congressional Democrats and President Biden want to do?
Increase taxes and create more onerous regulations.
Americans need leaders who understand what it takes to run a business. Leaders who understand how our economy works. Leaders who understand that supply chains are broken and labor markets are in dire need of less regulations — not more.
Today, House Republican Leader Kevin McCarthy (CA-23) continued his roundtable series by highlighting the impacts that the Democrats’ proposed Made in America tax will have on businesses and the American economy.
Democrats say their taxes will only affect the largest corporations and that it won’t cost the American people a dime, but we know the reality: when businesses are taxed they pass that cost directly to the consumer in higher prices, cut wages for workers, or reduce the returns savers depend on for their kid’s education or retirement.
That means it is going to cost more to ship goods. That means a higher cost for a gallon of milk. That means Americans are having to spend more of their hard-earned paychecks to support their families.
It’s simple, really. House Republicans believe that the government should make getting ahead easier for working-class Americans, which is why Leader McCarthy gathered members and invested Americans to discuss what needs to be done to get America back on track.
Leader McCarthy (CA-23): “Given the backdrop of rising prices and wait times for goods — you would think we would want to make America a more attractive place to do business…but right now, we’re watching how ineffective and ignorant policies from Democrats touch every aspect of our lives.”
Rep. Lisa McClain (MI-10): “What we are hearing back home is the lack of logic in the [Democrats’ reconciliation bill]… we have to go back to what has made America the world power house. It’s capitalism, it’s freedom it’s the ability to innovate, and take risks. And I don’t know why [Democrats] have this bashing and negative sentiment towards business.”
Rep. Lloyd Smucker (PA-11): “Businesses respond to incentives. They’re going to go overseas if that’s what is best for them… Democrats’ policies that are pushing jobs overseas and encouraging people to stay home instead of work are horrific.”
Rep. Bryan Steil (WI-01): “You pass the costs onto the consumer. We’re seeing those inflationary pressures across the United States in industry after industry as goods are more and more difficult to ship… and what do we have before us? A Made in America Tax discouraging production in the U.S.”
Rep. Byron Donalds (FL-19): “Freight costs are already rising in the United States because of a lot of the policies coming out of this Administration… Now you’re going to make us less competitive from a tax perspective, which means there is going to be more production overseas with a higher freight cost… For employees in America, even though they might get a slightly higher wage, the cost of the very products that they are going to buy are going to be much more expensive.”
Katie Poehling Seymour, President and CEO of First Supply LLC: “Distributors overall pay a very high effective tax rate and our margins are very tight — usually 2% after tax, so we don’t have a lot of wiggle room…it’s really important that the capital that we do have we are able to reinvest in the business and the communities.”