In a move that literally surprises no one, Joe Biden is planning a new tax hike. According to sources, Biden’s plan for the “first major federal tax hike” in nearly thirty years is on the horizon.
“Unlike the $1.9 trillion Covid-19 stimulus act,” Bloomberg News reported, “the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source. While it’s been increasingly clear that tax hikes will be a component — Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates — key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners.”
According to Bloomberg, sources within the Biden administration revealed that the White House is going to advocate for:
- Raising the corporate tax rate to 28% from 21%
- Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
- Raising the income tax rate on individuals earning more than $400,000
- Expanding the estate tax’s reach
- A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)
“His whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens. That is why the focus is on addressing the unequal treatment between work and wealth,” Sarah Bianchi, head of U.S. public policy at Evercore ISI and former economic aide to Biden, told Bloomberg.
The Bottom Line
Of course, the left’s narrative about “fair” tax policy is completely counter to the facts. According to the Tax Foundation, “the top 1 percent paid a greater share of individual income taxes (40.1 percent) than the bottom 90 percent combined (28.6 percent).”
Also, according to the Heritage Foundation, “the top 10 percent of income earners pay almost 70 percent of federal income taxes.”
The real result of Biden’s proposed tax hike will be economic devastation. Big corporations and the top 1 percent of taxpayers will either use tax loopholes that the establishment refuses to close, or move out of the United States, moving thousands — perhaps millions — of jobs overseas, and reducing the tax base. Eventually, they’ll have to raise taxes on the rest of us just to make up for the losses. The cost of living will likely increase along with the tax hike, hurting average Americans.
The American people have to balance their budgets every month and spend within their means, so why doesn’t our government have to do the same? Democrats won’t even attempt to cut wasteful spending, they just want to take more money from the American people.