Biden's tax hike on wealthy Americans will 'punish the economy, blue-collar workers, and small businesses,' GOP rep says

JOE Biden's planned tax hikes on wealthy Americans will "punish the economy" as well as blue-collar workers and small businesses, a Republican congressman has claimed.

Rep. Kevin Brady told Fox Business on Monday that President Biden's plans to raise the capital gains tax by almost more than double its current rate of 20% would be a "major economic blunder".

The planned tax increases come as part of Biden's $1.8 trillion American Families Plan, which will focus on social programs such as national child care, paid family leave, and tuition-free community college.

To pay for the mammoth package, Biden wants to hike the top income tax rate back to the 39.6 percent it was before former President Donald Trump's tax cuts in 2017.

However, speaking on Monday morning Texas Republican Rep. Brady said the president was making a "major" mistake.

"This is another major economic blunder by President Biden," Brady told host Maria Bartiromo.

“Look … after the Tax Cuts and Jobs Act, investment surged in America, and as a result, it was blue-collar workers, it was local communities that benefited. When you double that tax, you have if the opposite effect," he said.

"In reality, you wouldn’t encourage a cure by punishing the most frequent and successful researchers., You don’t rebuild a healthy economy by punishing those who invest in that local and U.S. economy, and that’s exactly what you have here.

"So at the end of the day, American workers are the net loser in President Biden’s capital gains proposal.”

Brady added that stopping the planned capital gains tax hikes is "doable", and said that the GOP would fight the plan "tooth and nail" in the House of Representatives.

“I think most lawmakers understand we don’t want a business tax rate worse than China and on par with Syria,” he said.

“We don’t want to go back to … last time, you know, Biden was in the White House when we saw hundreds, if not thousands, of businesses moving their jobs and manufacturing and headquarters overseas.

"That is a huge step backward," he continued. "And I think the more lawmakers understand the impact here, I think the more gains we make."

Biden is expected to unveil the details of his $1.8 trillion American Families Plan in his first address to Congress on Wednesday night.

The plan remains a work in progress with some items even being a point of contention among Democrats.

Such items include debates over lowering costs of prescription drugs and including additional funds to expand medicade.

Republicans are expected to oppose the entire package, which follows closely on the heels of Biden's landmark $1.9 trillion America Rescue Plan.

Biden's $2 trillion Build Back Better infrastructure plan is also currently making its way through the legislative process.

Also in his Wednesday speech, Biden is expected to tout the successes of his first 100 days in office, in addition to plans for reforming policing and immigration.

"On his mind are issues like police reform, health and his commitment to expanding access to health care," White House Press Secretary Jen Psaki said during a press conference on Thursday.

"So I expect he'll talk about a range of issues," she added.

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