Joe Biden made a lot of promises during his truncated run for the White House. One of them, that he wouldn’t be Donald Trump, he’s kept. The others, most of which were grounded philosophically in the idea he was a moderate Democrat – an image the mainstream media cheerfully did its best to confirm, have gone out the window.
On economics, on cultural issues, even on foreign policy he’s not just reverting to the positions taken during the Obama years. No, he’s breaking new ground in so many areas it’s clear he’s trying to be a transformational president rather than the caretaker who brought us all together he suggested time and again that he’d be.
His latest foray into the grand schemes of central planning is his lately-much-discussed infrastructure proposal that’s starting to look like “the green new deal” – which he said repeatedly he wasn’t for – plus a lot of other things.
What he wants to do is bad enough. How he plans to pay for it is even worse. Now, the whole business is carrying with it an estimated $2 trillion price tag, a figure that is ambitiously modest. It’s going to cost a lot more and, as if the Democrats ever need a reason to do it, he’s going to suggest a slew of new taxes and tax hikes to get the money.
According to an analysis of the proposal released Tuesday by Americans for Tax Reform, the starting point for Biden will be an increase in the top corporate tax rate from 21 percent to 28 percent alongside the introduction of a 21 percent global minimum tax, an idea beloved by European advocates for enlarging the welfare state to end tax competition between nations.
If that were not bad enough, he’s also calling for a doubling of the capital gains tax to almost 40 percent, imposing a second death tax by ending step up in basis, and raising the top individual income tax rate to 39.6 percent.
What he wants is tax reform in reverse. The right way to do it is to broaden the base and cap or eliminate deductions the way Reagan and Trump did it. In both cases that acted as rocket fuel to a moribund U.S. economy. What Biden is proposing to do will choke off growth and reduce incentives to save and invest – making America more like Japan in the process, a big economy with no appreciable growth.
“Biden’s tax hikes,” ATR said, “will hit Main Street small businesses hard. Small businesses that are organized as pass-through entities (sole proprietors, LLCs, S-corps etc.) pay taxes through the individual code and will be hit by Biden’s plan to raise the top income tax rate to 39.6 percent.”
Moreover, the group said, the increase in the corporate rate – if Biden gets what he is said to want – will cause utility bills to go up. “Utility customers bear the cost of taxes imposed on utility companies. Utility companies pay the corporate income tax. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. When Republicans enacted a corporate tax rate cut, utilities across the country lowered their rates.”
What that means is higher taxes for just about everyone, shattering his promise that those making less than $400,000 a year (even if that’s by household and not individually, a distinction the then-former vice president never made on the campaign trail) “Inclusive of state taxes and the Obamacare 3.8 percent Obamacare tax, Californians would face a capital gains rate of 56.7 percent, New Yorkers would face a capital gains rate of 52.2 percent, New Jerseyans would face a capital gains tax rate of 54.14 percent.”
That makes it clear why Democrats from those and other high-tax states are adamant about repealing the cap the Trump tax reform put on the deductibility of state and local taxes also called “SALT.”
Without the SALT cap, taxpayers in well-run red states end up subsidizing the inefficiency, bloat, and wasteful spending in the poorly run blue states like New York and Illinois. That may be outrageous but it’s also Biden policy – and what the Democrats stand for. Taking money from the people (and states) that have it and oversee it responsibly to subsidize those who manage what they have poorly if at all.
As ATR points out, the proposed Biden’s corporate tax hike would make the U.S. top rate higher than Communist China’s 25 percent, a nation not thought likely to join in the effort to establish a global minimum corporate tax. What the president is proposing is an incentive for American companies to move to China rather than bring their operations home, something the coronavirus pandemic demonstrated “IRL” might be a good idea whose time has come.
The Democrats used to criticize the GOP for supporting tax cuts for any reason. Now the worm has turned. Mr. Biden and the Democratic Party are now for higher taxes for any reason, the health of the U.S. economy be damned. His tax plan is a bad policy – bad for everyone, except maybe China.
Peter Roff is a former U.S. News & World Report contributing editor now affiliated with several Washington, D.C. public policy organizations. He appears regularly as a commentator on the One America News network. Reach him by email at [email protected]. Follow him on Twitter @PeterRoff.
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Oh the taxes!!!
every democrat has a special excuse why taxes are going through the roof. This time it’s because of self-blundering.
oh, almost forgot to mention the homeless in california could probably use a condo since the migrants have mysteriously beaten them to it.
Let’s not leave out foibles. There are casinos being built on every vacant lot, while lotteries are flooding public coffers with billions of dollars. Pot is now a liberal cash cow–for both governments and their ‘health’ industry denizens–with tobacco and booze rounding out their bad habit vein sources of cash to tap. We should turn a few liberal faces red (That’s actually fairly easy..) and ask the little whiners why the children of gamblers are hauled into casinos and exposed to second hand smoke, which is one among many of their angst-producing issues. You’ll witness liberals hem-hawing on a grand scale.
Lead in long term to Great Depression 2.
For the people that think the tax will be on the rich deserves what they are going to get. Enjoy provety. Corperations do not pay taxes. It is a cost of doing business and the cost is passed to the consumer. The goverment is to ignorant to understand.
Oh they understand. they continue with the attitude that the American people are not smart enough to realize it , however in some cases their blind followers, I’m not so sure about.
Liberal raise Taxes/Fees/Fines/Foibles/Funds. That’s all you need to know. A little research and analysis will enlighten people on how liberals do these things.
Senile Democrap sleepy Joe Biden is an economic Putz!
LISTEN UP….IT is TIME to IMPEACH PREZ BIDEN. HE is MAKING CRAZY MOVES. HE is an UNSTABLE President. AMERICANS Don’t KNOW Whether THEY are COMING or GOING. THIS is What it FEELS Like..When a MAN Puts AMERICA/AMERI CANS LAST. From SamuraiQueen. 😄😄😄
It’s too bad the infrastructure proposal is starting to look like the green new deal, especially since the green new deal is a hoax. It is built on the premise that CO2/GHGs are the cause of global warming/climate change. THEY ARENOT; IT HAS NEVER BEEN PROVEN and recent data indicate they are not the cause. Basically, the cause is most likely an interaction of the Earth with a cyclic Sun and this is being reported currently. We have very little control of this interaction, but understanding it will likely lead to some mitigation of it’s effects on us.
Global warming is WEATHER! The climate always changes! It used to be an ice age was coming, now it’s global warming. It’s the natural changes in our weather. If people understood science, they would know that this whole global warming hoax is to tax businesses and people! Another wealth distribution scam to give to the democrats donors and themselves!
Before ALGORE was conceived after a defective prophylactic event, mile thick glaciers blanketed much of what is now our norther borders and Canada. Those glaciers melted when the climate WARMED, eons before the first car, factory or backyard barbecue appeared. That was Climate Change. Mankind’s entire cumulative effect upon the earth’s atmosphere is roughly equivalent to a mouse fart in a shopping mall.
I am retired and never depended on any handouts all of my life. I do not get any of the checks being handed out and luckily do not need them. I saved while I worked and invested in the market. I am a long term investor and have substantial appreciation in my portfolio. I have been managing it with the intention of passing on my low cost basis to my wife who is considerably younger than I am. The elimination of the basis increase that you are suggesting and the increase in the capital gains tax in my opinion would be confiscatory. I spent a long time building what I have and with one sweep of the pen a good deal of it would be taken away.
Come on people you can’t really be surprised by this, once a liar always a liar, that’s Biden the hater of free trade, the commies have him by the short hairs! When you sell your soul if he ever had one to the devil you wind up with nothing, he will always be nothing! Fraud, cheating, lying arebhisnstock and trade just like the rest of the dumboRats!
When I was born the top marginal tax rate was 91%. If I was making $1 million at my first job it would’ve been 70%. Now it’s 42.8% including the Obamacare tax. You pay that only if you have no deductions, have an ignorant accountant, or your business and real estate holdings are showing big profits.
With the Reagan, Bush and Trump tax cuts we should all be millionaires by now. There are a couple hundred more billionaires in just the last 10 years. Trump cut corporate taxes by 40%. So gas, food, utilities, cars should cost 40% less in the last three years, right? Or at least less. Those corporate savings went to buy back stock, which means the millions of shares CEOs hold went up. And the corporate tax savings went to increase dividends, not job creation, meaning your vast stock portfolio made you richer, right?
(Trump is the first president since Hoover to leave office with fewer jobs then when he entered!). Those lost corporate taxes could be making your commute easier, or giving you broadband.
History shows that the Democrats drunken sailor spending at least gives everybody something, including a safety net when bad things happen to good people. Republicans disproven trickle down plans and tax cuts just make the rich richer.
You’re omitting an important factor of costs for goods and services: Competition. When a product or service is provided by more than one company, those firms compete for market share by lowering prices. It is quite obvious that our government is involved with reducing competition by forcing companies to pay higher employee wages/taxes/fees/fines, which cuts into their profit margins. There’s a web resource for studying this topic: It’s title is “The Liberal-Corporate Complex”. Our government further eroded our domestic competitor field by offshoring our manufacturing and service jobs to foreign sweatshops. Not surprisingly, that bill (NAFTA) was signed into law by one William Jefferson CLINTON.
WELCOME to THE COMMIE OBIDEN PANTY SNIFFER STATES OF AMERICA. Also get ready for the soup lines. This all planed to destroy your business, your life. If you can’t pay then they come take your property? What good is the NEW GREEN DEAL when everybody is dirt poor except the elite. I’m sick of this crap already. Saw an article that in ten years there would be NO PRIVATE PROPERTY because of the U.N. / Commie take over. (Agenda 21 is now Agenda 30 /35 or ?)
I hope all those MF’s die of drowning in their money. WE made them rich and now they want to destroy us. Bill Gates has now become the largest farm land owner in the country. So he can screw you on food prices at his whim. I am glad I don’t have any kids to go through this crap and I am too old and poor health to be slave labor. All you commie snowflakes are going get a rude awaking. All you blacks too! ALL YOUR PC is about to bite you in the ass!
Biden should be impeached plain and simple NO reason in the world he or his party should still be ruining American TREASON……….
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