California Congressional Democrats Voted for Largest Tax Increase in American History
Globe Interviews Stephen Moore: Making Trump's 2017 tax cuts permanent protects the average taxpayer from a 22 percent tax hike
By Katy Grimes, May 19, 2025 4:52 pm
19 May 2025 4:52 pm
California's Democrat Members of Congress just tried to unleash the largest tax increase in history by voting against making President Donald Trump's 2017 tax cuts permanent in the "One Big Beautiful Bill," also known as H.Con.Res.14.
Every Congressional Democrat voted against the tax cuts.
"If we don't pass this bill, it will be the biggest tax increase in history," Stephen Moore told the Globe Monday.
Moore, co-Founder of Unleash Prosperity Now, and the author of "Who's the Fairest of Them All?: The Truth about Opportunity, Taxes, and Wealth in America," warns that if Trump's "One Big Beautiful Bill" is not passed, every family in America will pay $2,000 to $3,000 more per year in taxes - and that is just for starters.
It will be a 20% increase on small businesses. California Small businesses are already suffering and have been for many years under two very left-wing Democrat governors - former Governor Jerry Brown and Governor Gavin Newsom. Many businesses have fled California for low-tax, low regulatory states. Since 2020 over 500 companies have either left California completely, or built and expanded operations in a low-tax state, shrinking their California operations.
Without the bill passed, we will revert back to the old tax system - standard deductions will be cut and high taxes will once again plague the country.
Notably, in 2023, Moore reported, "We now have incontrovertible evidence that after five years since they took effect, the Trump tax rate cuts of 2017 raised revenues over this time period."
"In other words, revenues were up 40% in five years. The evidence through the first three years of the tax cut finds that the share of taxes paid by the wealthiest 1% rose as well. So much for this being a tax giveaway for the rich."
In a recent Fox Business appearance, Stephen Moore said Trump's 2017 tax cut "was an enormous driver of economic success and raised revenue for the government, contrary to predictions of 'tax cuts for millionaires.' The average small business saw a 20% reduction in their tax rates, and the corporate rate fell from the highest in the world at 35% to below average at now 21%. Middle-class families saved more than $2,000."
So why do Democrats want to let the tax cuts expire? They've got nothing but "tax cuts for millionaires" - which is patently false. They must not like the American people very much.
The U.S. House Ways and Means Committee explains that the tax cuts need to be extended to continue to "provide tax relief for families, workers, small businesses, manufacturers, and farmers. The One, Big, Beautiful Bill, makes the successful 2017 Trump tax cuts permanent, provides additional tax relief for working families and small businesses, rewards investment and manufacturing in America, and holds woke elites accountable while ending tax giveaways to the wealthy, China, and illegal immigrants."
"Instead of a $1,700 tax hike, working families still recovering from Biden's inflation crisis will now receive on average a $1,300 tax cut and workers will get $3,300 more in real income back into their pockets. Permanence of the 2017 Trump tax cuts will save 6 million jobs, including 1.1 million manufacturing jobs."
Notably, California Rep. Adam Gray (D-CA-13) and Rep. Derek Tran (D-CA-45), two new Democrats who managed to flip Republican congressional seats, voted for the higher tax rate, fewer deductions, the universally-despised alternate minimum tax, and evil death tax.
Moore told the Globe that if the 2017 Trump tax cuts got rid of the alternative minimum tax for 90% of the people paying for it. The alternative minimum tax is a tax imposed by the U.S. government in addition to the regular income tax for certain individuals, estates, and trusts. (emphasis the Globe)
The Trump tax cuts also eliminated the family death tax by half who were forced to pay it.
"Eighty percent of the American taxpayers got tax breaks - non-rich people," Moore reiterated. "This is not a tax cut for the rich," - which Democrats continue claiming, conflating small and medium sized business owners with Silicon Valley wealth.
Every American is facing a 22% tax increase if Trump's tax cuts are not approved.
The Ways and Means Committee explains the details:
Makes the 2017 Trump tax cuts permanent - protecting the average taxpayer from a 22 percent tax hike. Delivers an additional $1,300 tax cut for the average American family. Saves the average American family $1,700 - the equivalent of 9 weeks of groceries. Increasing real annual take-home pay for a median-income household with two children by roughly $4,000 to $5,000. Raising annual real wages by $2,100 to $3,300 per worker. Delivers on President Trump's priorities of no tax on tips, overtime pay, and car loan interest, and provides additional tax relief for seniors. Locks in and boosts the doubled Child Tax Credit for more than 40 million families and provides additional tax relief for American families. Preserves and increases the doubled guaranteed deduction for 91 percent of all taxpayers. Expands 529 education savings accounts to empower American families and students to choose the education that best fits their needs, whether it is K-12 materials or obtaining a postsecondary trades credential. Supports working families by expanding access to child care and making permanent the paid leave tax credit. Puts American families in control of their health care by expanding health savings accounts and cementing into law a Trump Administration policy that offers more choice and flexibility for health coverage options. Starts building financial security for America's children at birth with the creation of new savings accounts.
In Democrat Rep. Adam Gray's district (CA-13), the average taxpayer in CA-13 would see a 27% tax hike if the Trump Tax Cuts expire. A family of 4 making $65,557, the median income in CA-13, would see a $1,243 tax increase if the Trump Tax Cuts expire. This is worth about 6 weeks of groceries to a typical family of 4 in the region. The Child tax credit would be cut in half for the 105,240 families who claim it on their taxes, guaranteed deductions cut in half, the 37,430 Small Businesses in CA-13 would be hit with a 43.4% tax rate if the 199A Small Business Deduction expires, the Alternative Minimum Tax will return, and the 5,065 Family-Owned Farms in CA-13 would have their Death Tax Exemption slashed in half next year, Ways and Means reports.
In Democrat Rep. Derek Trans district (CA-45), the average taxpayer in CA-45 would see a 19% tax hike if the Trump Tax Cuts expire. A family of 4 making $102,317, the median income in CA-45, would see a $2,346 tax increase if the Trump Tax Cuts expire. This is worth about 11 weeks of groceries to a typical family of 4 in the region. The Child tax credit would be cut in half for the 88,350 families who claim it, guaranteed deductions cut in half, the 66,290 Small Businesses in CA-45 would also be hit with a 43.4% tax rate if the 199A Small Business Deduction expires, the Alternative Minimum Tax will return, and Family-Owned Farms in CA-45 would have their Death Tax Exemption slashed in half next year, Ways and Means reports.
Author Recent Posts Katy GrimesKaty Grimes, the Editor in Chief of the California Globe, is a long-time Investigative Journalist covering the California State Capitol, and the co-author of California's War Against Donald Trump: Who Wins? Who Loses? Latest posts by Katy Grimes (see all) California Congressional Democrats Voted for Largest Tax Increase in American History - May 19, 2025 Medicaid Deserves To Be 'Cherished and Loved' - and Reformed - May 19, 2025 Latest U.S. Census Data on Cities: Florida and Texas Still Dominant in Growth - May 19, 2025 Spread the news: RELATED ARTICLES Bill to Repeal California Tax Credits = Backdoor Tax Increase May 29, 2019 California Democrats Refuse to Pass Gas Tax Relief March 15, 2022 AB 657: California Candy Tax March 26, 2023