In order to pay for the $1.9 trillion Covid “Relief” Bill and other policy initiatives, the Biden Administration is planning the largest tax hike on Americans in almost 30 years.
How much will taxes increase?
The Tax Policy Center reported an estimated $2.1 trillion over the next decade.
This is in addition to the $60 billion in tax increases that flew under the radar in the relief bill.
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So, during an economic crisis (caused by government), the government wants to further punish Americans by taking away more of their income.
We saw what happened with President Trump’s tax cuts in 2017.
The economy flourished and many groups experienced record lows in unemployment.
That’s what Democrats don’t understand.
Giving more money to the government just to let them waste it only puts a ball & chain on the economy.
Here’s the latest on the reported tax hikes:
Joe Biden has been working overtime to undue the successes of the Trump Presidency. From energy independence to secure borders & more.
Now here come the tax hikes.. Working families deserve good paying jobs & to keep more of their own money – not less. https://t.co/e6YqCGqHNZ
— Eric Schmitt (@Eric_Schmitt) March 15, 2021
Middle-class tax hikes are coming, thanks to Joe Biden and the Democrats.
— Ways and Means GOP (@WaysandMeansGOP) March 11, 2021
Joe Biden mulls tax hikes, testing his capacity to woo Republicans https://t.co/xxlGlF87yK
— Business Day (@BDliveSA) March 15, 2021
President Trump and I helped deliver historic tax cuts that expanded the economy and lead to record growth. Now, Joe Biden wants to further cripple a struggling economy by raising taxes! This would be a terrible economic mistake. https://t.co/BUkIm5h6OL
— Kevin Brady for Congress (@bradyfortexas) March 15, 2021
SURPRISE! Joe Biden and Congressional Democrats' "coronavirus relief bill" includes $60 billion in surprise tax hikes…
— Job Creators Network (@JobCreatorsUSA) March 12, 2021
But as history has indicated, higher taxes do not automatically equate to higher federal revenue.
In fact, it’s normally the opposite.
just a little check of the facts would reveal that higher tax rates on upper-income earners do not automatically translate into more tax revenue coming in to the government. Often high tax rates have led to less revenue than lower tax rates.
— Thomas Sowell (@TheThomasSowell) August 9, 2020
And that’s what Democrats never understand.
The Blaze provided further details:
Unnamed sources confirmed the plans to Bloomberg News over the weekend, reportedly indicating that the major tax hike — the first since 1993 — is expected to pay for key Biden administration initiatives such as “infrastructure, climate, and expanded help for poorer Americans.”
But the sources said the planned changes are not designed to fund only the key priorities of the administration. With the tax hike, Biden’s team hopes to address what Democrats argue are “inequities in the tax system itself.” According to the Bloomberg report, the changes include:
- 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“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,” Sarah Bianchi, a former Biden economic aide, told Bloomberg. “That is why the focus is on addressing the unequal treatment between work and wealth.”
Bloomberg cited an independent analysis of the plan conducted by the Tax Policy Center, which assessed it would raise taxes on American citizens by $2.1 trillion over 10 years. The group originally projected the plan would raise taxes by $4 trillion over a decade, but revised its forecast last November.
The plans are unsurprising coming from the Biden administration and progressive Democratic lawmakers, who have already shown a willingness to raise taxes to accomplish their policy goals. Democrats snuck $60 billion in tax hikes into the coronavirus relief bill even as the country faces continued economic difficulty as a result of the pandemic.
However, despite falling in line with Biden’s campaign promises and demands from progressive lawmakers, any major tax hikes may face an uphill battle in Congress. Tax hikes, especially if they result in a repeal of former President Trump’s 2017 tax cuts, are a non-starter for Republicans. Likewise, moderate Democrats have shown some reluctance to the idea.
Moderate Democratic Sen. Joe Manchin (W.Va.) previously told The Hill repealing Trump’s tax cuts would be a “ridiculous” idea, though he later added, “Everything’s open for discussion.”
Then last month, an anonymous Democratic House member told The Hill the government should not be raising taxes.
“People would accept the corporate tax raised a few points, but beyond that you’re going to have problems, especially in the middle of an economic crisis,” the lawmaker reportedly said.