Biden Tax Increases

 

In an early campaign speech Joe Biden said, “…I will raise your taxes!”  He later qualified the statement saying, “I will only raise taxes on those with incomes over $400,000,” which is only the top 0.8% and not enough to support one liberal give-away program. However, Joe has said he would rescind all the Trump tax cuts, “…on the first day.” and restore regulation as well as renew the Iran deal that guaranteed them a nuclear weapon within ten years.  That alone will put us on an economic decline curve, but Joe had the usual liberal reasoning:

 “I will raise taxes for anybody making over $400,000,” Biden said in an interview with David Muir of  ABC. “Let me tell you why I'm going to do it: It’s about time they start paying a fair share of the economic responsibility we have. The very wealthy should pay a fair share – corporations should pay a fair share.”  Joe apparently is unaware, or chooses to ignore that the top 20% pay 80% of all the personal income taxes and we say, “That is not fair!”

The only fair tax is a flat tax with no exemptions, but that takes away all the alternatives that get so much graft that our elected people use to feed their Swiss number accounts.  As a result we have more US Dollars in “off shore” number accounts than we have in circulation.  Ending this would have out economy bloom with all the new businesses, products and employees it would support.

The Constitution gives Congress the power to set tax, so Biden's economic agenda will hinge on whether, or not, Democrats control both chambers on Congress. While they appear poised to maintain a slim majority in the House, control of the Senate hinges on Georgia, where the state's close election has pushed both races to a Jan. 5 runoff.

BIDEN PLEDGES TO ROLL BACK TRUMP'S TAX CUTS SAYING, “A LOT OF YOU MAY NOT LIKE THAT'

Almost 80% of the tax increases backed by Biden would land on the top 1% of earners in the U.S., according to his claim, but that will net very little compared to what his grand plans require. Nonetheless, the Penn State Wharton Budget Model, of the University of Pennsylvania's Wharton School is claimed to support the Biden plan, but this only confesses their bias as it is ridiculous.

Biden would roll back President Trump's 2017 Tax Cuts and Jobs Act and raise the corporate tax rate to 28% from 21%, restore the top individual tax rate to 39.6% from 37%, tax capital gains as ordinary income, cap deductions for high earners, expand the Earned Income Tax Credit for workers over the age of 65 and impose the Social Security payroll tax on wages above $400,000.

He would also raise taxes on individuals by repealing parts of the Tax Cuts and Jobs Act.  The tax overhaul Republicans passed nearly four years ago temporarily lowered the top income bracket to 37%.

Create a Social Security "donut hole!"

Under existing law, employees and employers split a 12.4% payroll tax on wages below an annual maximum (in 2020, it's $137,700). The levy, which shows up on paystubs as a FICA tax, is used to fund Social Security.

Biden will also raise taxes on capital gains and dividends for higher earners. For individuals and couples earning more than $1 million, capital gains and dividends would be taxed as ordinary income at a rate of 39.6%. Long-term capital gains are currently taxed at a top rate of 20%.

Increase levies on inherited assets. Biden's plan scraps the step-up in cost basis on inherited assets.  Under current law, when heirs inherit an asset that has appreciated in value, they get a "step-up" in basis, meaning they receive the holding at its current market value. Beneficiaries can sell those assets and pay capital gains based only on the time they receive the asset and the time they sold it, allowing them to minimize the tax bite.  But Biden suggested applying capital gains taxes based on the original value of an asset.

All of this is bad news for the people who own small businesses, farms and other such small enterprises long thought to be the backbone of America only to be destroyed by Biden tax increases.

Adrian Vance.