Democrats in congress just unveils the legislation on the single largest tax increase in over 50 years. It’s a staggering 880 pages, which makes it nearly impossible for anyone latent person to understand what any of it means. The biggest thing to know is that when the government starts spending money, it’s never its own money, it’s someone else’s. AKA: Your money.
This bill comes with over $2 Trillion increase in tax, and is already 4x more than Obamacare’s tax hikes of $500 billion.
What’s the money for? It’s meant to fund the controversial and extremist agenda of democrats and expand the government’s control of the American people. It would put more of American’s economic resources into the hands of bureaucrats and politicians instead of into the private sector.
Wages would be reduce, economic growth stalled, prices increased and working families will suffer. Let’s take a look at 8 things you’ll need to know about Biden’s tax hikes.
1. It’s breaking Biden’s Campaign Promise on Tax Hikes of Earnings of Less Than $400,000
Biden made repeated statements on campaign that he wouldn’t increase tax burdens for any household making less than $400,000 per year.
While Biden has repeatedly promised that the tax package wouldn’t increase taxes on those making less than $400,000/year, this plan directly contradicts that. Taxes on working families would go up for anyone making more than $50,000/year.
2. It Hikes Taxes for the Individual, and Penalizes Married People
The bill increases top marginal tax rates for the individual to 46.4% and the top-most bracket would go form 37% to 39.6%. There would also be a massive marriage penalty. The higher taxes apply to individual people earning more than $400,000, but married couples only at $450,000. This tax increase is a democrat lie that tell America high-earning citizens don’t pay a fair share on taxes, but the top 1% of income earners pay 40% of federal taxes and the bottom 50% only pay 3% of taxes.
These increases on tax harm the private sector and economic recovery.
3. Pass-Through Businesses Will Suffer
Democrats are using this to attack the small business system. While small business usually file taxes as pass-throughs, meaning they pay individual taxes instead of business taxes, this plan raises taxes on small businesses and specifically targets their production income.
4. Capital Gains Will Increase Dramatically
The bill would increase the top capital gains tax rate from 20% to 25%. These are not actually taxes on wealthy Americans. Instead, they are a duplicative layer of taxation on the added value of business activity.
Capital gains would go from 20% to 25%, which would stunt business activity and economic growth by making it more difficult to start or invest in a new business.
5. Corporate Taxes Would Be More Than Communist China’s
Corporate taxes would be raised to 26.5% which is higher than the EU’s 19.99% average and even higher than China’s even 25%. This will cause reduced wages and higher prices for customers. It’s not just costs on corporate income, either. It taxes legitimate business costs and expansion costs as income, making it more difficult for businesses to expand, which will eventually lead to the breakdown of the private sector.
6. International Trade Will Be Penalized
The bill will penalize trade internationally, this includes imports of materials to the U.S. and exports of U.S. products all around the globe.
7. It Gives The IRS More Power Over The People
The bill gives the IRS a lump sump of $79 billion to use to strengthen tax enforcement and compliance and to expand the auditing and enforcement systems.
8. It’s All For Liberal Benefit
The bill offers dozens of more than generous tax credits to liberal-centered corporations, including green energy and union collectives.
The Bottom Line
The tax code is meant to be fair, transparent and simple. This bill is a tried-and-true tactice of the left to use taxes to give money to their interests and fund it all off the American people and high earners.
They want you to believe they will only affect the wealthy, but in reality, the trickle effect will burden every American family and all businesses, and compromises the very future of America.
It will slow economic growth, reduce wages and diminish the job market. It will also crush the free market, making way for more government control on the everyday lives of Americans.
Author: Jill Roland