According to a report at Bloomberg, Joe Biden is planning the first major tax increase since Bill Clinton did it in 1993. Reportedly, Biden intends to raise the corporate tax rate, increase the capital gains tax for people making over a million dollars, widen the estate tax, increase the income tax on people making more than $400,000 and reduce tax breaks for businesses. Per analysis of the tax plan Joe Biden was pushing during his campaign by the Tax Policy Center, he could raise as much as $2.1 trillion over 10 years. You can expect Biden to try to push his tax increase through reconciliation, where he’ll only need to get 50 votes in the Senate. That means if all the Democrats hang together, they can push it through with no Republican votes.
This tax increase, if it passes, is supposedly going to be used to raise money for spending on infrastructure and the environment that Biden wants. Of course, in a saner world, everyone would immediately notice that really doesn’t make much sense. We ran a nearly 4 trillion dollar deficit in 2020 and given that Democrats just shoved through a pork-ridden 1.9 trillion dollar “COVID-relief” bill, we’re expected to crack 4 trillion AGAIN this year. Meanwhile, Biden is talking about raising 2 trillion in a decade to finance new spending? That doesn’t even cover the “old” spending and it ignores the fact that the Federal Reserve printed trillions of dollars worth of new money last year with nothing to back it. In other words, even if Biden passed his new taxes, we’d need half a century to catch up to the spending we’ve done since COVID hit.
So, why isn’t Biden going with even higher taxes? Because the truth is that America has an extremely progressive income tax system and already we’re soaking corporations and the rich to the point where simply moving to some other country is becoming increasingly attractive to them. We also all know it’s very unpopular to increase taxes on the middle class. So, the extremely obvious solution would be to forget about new programs and dramatically cut back on spending. That’s not going to happen because ultimately, the Democrat goal is not to right the ship, it’s to be in charge of it even if sinks down to the bottom of the ocean.
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