Despite Biden’s Campaign Promises, 60% of Americans Could See Tax Increase Under His Proposals
Analysis by the nonpartisan Tax Policy Center found the 60% of American households could see a tax increase because of Joe Biden’s legislative proposals.
According to the Washington Examiner:
Biden’s proposed tax increases include raising the corporate rate from 21% to 28% and the capital gains rate from 21% to 39.6%. The president has also called for raising the nation’s top rate back to 39.6% from 37%.
Biden’s budget proposes making single individuals making more than $452,700 subject to the top rate, while married couples earning more than $509,300 would also be subject to it. Heads of households making more than $481,000 would be subject to the top rate as well, along with married individuals filing separately that make more than $254,650.
Biden’s proposal does not call for a direct tax increase for those making under $400,000, but the analysis found that many low- and middle-income people would see a higher burden indirectly as a result of lower compensation and investment earnings stemming from the corporate tax hike. “Including corporate tax increases, most households would pay more in 2022. About three-quarters of middle-income households would face a tax increase averaging about $300. But nearly all would be a result of those higher corporate taxes” says the report.
While not included in the report, Americans will also face a “stealth tax” from inflation Biden’s excessive spending causes.
There are all sorts of attractive-sounding lies that politicians tell that never turn out to be true. “We’ll save all kinds of money by cutting wasteful programs.” “Yes, it’s socialism, but this time we’re going to do it right.” Then, there’s the all-time champ. “We’re only going to raise taxes on the rich.”
There are many reasons politicians never succeed in just targeting the rich. For one thing, despite cherry-picked examples of wealthy people who get away with not paying much in taxes, America already has high taxes on the rich. You also have to consider that increasing the capital gains tax and the death tax will claw back more money from the wealthy, but it also ends up potentially hurting a lot of middle-class Americans. On top of all that, the rich are going to hire the best accountants and pay lobbyists to make sure there are loopholes to protect them. The middle class doesn’t have that option and although we don’t have the money that the rich does, there are a lot more of us. If you want to claw tax dollars out of a group, the middle class is always a better target than the wealthy. However, targeting the middle class with tax hikes is also wildly unpopular, so the politicians always lie to you, then tax you anyway.
Ultimately, no matter what the politicians promise, you either have small government and low taxes or big government and high taxes. There is no such thing as a free lunch and the American people should keep that in mind when they go to the ballot box.
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