They may have lost the White House and both chambers of Congress, but that hasn’t stopped Democrats from trying to revive their old agenda—starting with a massive push to raise taxes on working Americans and small businesses.
In a move that’s infuriated fiscal conservatives, Democrat leaders in the Senate have introduced a set of tax hike proposals during ongoing budget negotiations. Chief among them: a plan to raise the corporate tax rate from 21% to 28%, repeal portions of the Trump-era Tax Cuts and Jobs Act, and increase taxes on investment income and estates.
While the bills have virtually no path to becoming law, Republicans say they reveal a troubling roadmap of what Democrats would impose if they ever regain power. “This is a blueprint for economic ruin,” said Senate Minority Whip John Kennedy (R-LA). “They’re making it clear—if given the chance, they’ll punish job creators, shrink your paycheck, and call it ‘equity.’”
According to the Republican-led Joint Economic Committee, Democrats proposed corporate tax increase alone would cost the U.S. economy up to 500,000 jobs over five years, reduce investment, and hit middle-class households through higher prices and lower wage growth. Critics say it would return the U.S. to the slow-growth malaise of the Obama-Biden years.
“They’re not even pretending anymore,” said Rep. Byron Donalds (R-FL). “They lost power, but they’re still obsessed with raising taxes and growing government. This shows exactly why voters rejected them.”
The proposals come at a precarious moment. Inflation remains stubbornly high, interest rates have squeezed small businesses, and millions of Americans are still recovering from pandemic-era financial fallout. Yet instead of offering pro-growth reforms, Democrats are doubling down on what many see as class warfare disguised as fiscal policy.
“These aren’t serious proposals—they’re political signals,” said former Trump economic adviser Stephen Moore. “Democrats want to rally their base by demonizing corporations and the wealthy. But what they’re really doing is warning the rest of America what’s coming if they win in 2026.”
Among the proposals are:
- Raising the corporate tax rate to 28%
- Increasing capital gains taxes for high earners
- Reducing estate tax exemptions
- Imposing a minimum tax on unrealized gains
Even moderate Democrats outside Washington are warning against the message these proposals send. One Democratic governor, speaking anonymously, told reporters, “It makes us look out of touch. Voters want relief, not more taxes.”
Republican leaders have made it clear the bills will go nowhere in the current Congress. Speaker Mike Johnson (R-LA) said the House “will never pass a single one of these tax hikes,” and Senate Republicans have enough votes to filibuster any attempt to move the measures forward.
Still, conservatives are warning Americans not to ignore these efforts. “These bills are a preview of the Democrats’ 2026 platform,” said Vice-President J.D. Vance (R-OH). “They’ve learned nothing. If they get another shot, they’ll come for your paycheck, your business, and your retirement.”
Polling reflects that warning. A May 2025 Rasmussen poll found that 67% of likely voters oppose raising taxes during an economic slowdown, and 59% say they trust Republicans more than Democrats to manage the economy.
For now, the proposals serve mostly as a messaging tool for Democrats desperate to reframe their party before the midterms. But for pro-growth conservatives, it’s a reminder of what’s at stake if Democrats return to power.
“They’re out of power—but not out of ideas,” said Sen. Ted Cruz (R-TX). “Unfortunately, those ideas are still terrible.”
