Following the already controversial whopping $1.9 trillion COVID-19 stimulus bill, Joe Biden is reportedly planning the first major federal tax hike in nearly 30 years to fund his new economic program.
The next initiative, which is expected to be even bigger and could cost up to $4 trillion, won’t just rely on government debt as a funding source. Instead, taxpayers will take much of the brunt.
The planned increases reportedly include: raising the corporate tax from 21 percent to 28 percent, increasing the income tax rate on people making more than $400,000, expanding the estate tax, paring back tax preferences on pass-through businesses such as limited-liability companies and setting up a higher capital gains tax rate for individuals making at least $1 million, The Hill reports.
This plan, as noted by Bloomberg, would raise around $2.1 trillion over the next 10 years.
But, this doesn’t come as a surprise.
Biden said during his campaign that he would repeal Trump’s tax cuts on day one of his administration. Though, his main priority thus far has been fueling the crisis at the border.
Economist Lawrence Summers, who previously served as undersecretary in the Treasury Department, warned that Biden’s coronavirus stimulus package could cause a serious inflation boom, adding that Biden’s stimulus “is three times as large as the projected shortfall” and “relative to the size of the gap being addressed, it is six times as large,” per the Daily Wire.
“Given the commitments the Fed has made, administration officials’ dismissal of even the possibility of inflation, and the difficulties in mobilizing congressional support for tax increases or spending cuts, there is the risk of inflation expectations rising sharply,” Summers wrote. “Stimulus measures of the magnitude contemplated are steps into the unknown. For credibility, they need to be accompanied by clear statements that the consequences will be monitored closely, and if necessary, there will be the capacity and will to adjust policy quickly.”
Jim Bianco, president of Bianco Research warned that there is a serious threat of inflation that would damage the economy and stock market.
“If we get to 2.6 percent or 2.7 percent on the core [inflation] number, that’s the highest level we would have in 30 years,” he said. “That’s going to be a problem for risk markets to see that kind of level of inflation even if the Fed says that they want that level of inflation.”
Any tax increases that are passed would likely take effect in 2022. Some lawmakers, including democrats, have urged the Biden administration to hold off on any increases as unemployment remains too high.
One anonymous democrat in the House told The Hill in February that 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 said.
The post BIDEN V. TAXPAYERS: First ‘Major Federal Tax Hike’ in 3 Decades in the Works appeared first on Human Events.
© Copyright 2021 HUMAN EVENTS. All Rights Reserved.
—-
This content is published through a licensing agreement with Acquire Media using its NewsEdge technology.
Yep, Joe, raise taxes on corporations and what will happen? Any goods made in the United States, will cost more or these corporations will move production to Mexico or overseas and jobs will be lost. With corporate taxes being raised, we will not be competitive with the rest of the world. With illegal aliens let into the Country, wages are going to go down, for Americans. Joe and his communist Democrats are on a mission to destroy our society. Cancer personified!
How do you change— change the U.S. from a capitalist system’,
Into a socialist Democrat party government controlled system.
1. Healthcare — Control healthcare and you control the people.
2. Welfare — Take control of every aspect of their lives (Food, Housing, and Income).
3. Education — Take control of what people read and listen to — take control of what children and young people learn in schools and colleges.
4. Religion — Remove the belief in the God from the Government and schools.
5. Class Warfare — Divide the people into the wealthy and the poor. This will cause more discontent and it will be easier to take from the wealthy and give to poor. Until there are only the poor.
6. Debt — Increase the debt to an unsustainable level.
7. Gun Control — Remove the ability for the people to defend themselves from the Government. (“Socialist Democrat Party State”)
8. Poverty — Increase the poverty level as high as possible. Poor people are easier to control and will keep socialists in power if they are providing everything for them to live. Encourage, protect and support multi-millions of illegal immigrants who are poor, uneducated and disease ridden.
9. Allow illegal immigrants vote and hold government positions.
Do these look like the tactics of the Democrat Party??
Remember YOU voted for the Democrat Party. 🙁
He’s MORE than ok with OUR JOBS being farmed out overseas. ALWAYS WAS..
“Following the already controversial whopping $1.9 trillion COVID-19 stimulus bill, Joe Biden is reportedly planning the first major federal tax hike in nearly 30 years to fund his new economic program.”
The use of the term “program” insinuates some thought process weighing the pros and cons of policies being considered for implementation in order to achieve a specific goal.
In this article that has been attributed to Joe Biden.
C’mon, man!
ALL Americans will suffer, for the stupidity of the FOOLS who voted for him.
I would point out, the number of people who purportedly voted for the old fool, is a far cry from the number of people who actually voted for him, we must never forget, this election was stolen by communist/democrats. The gop fools have moved on to the 2022 election cycle, DO NOT ALLOW THESE BLOOD SUCKING IDIOT TO WALK AWAY FROM 2020, because that is exactly what they are trying to do, 2022 means nothing if 2020 is not dealt with first. ANY DAMN GOP member who wishes to ignore the 2020 steal, is not worthy of a nickel from any of us.
PITY all of them seem to have done so…
“If you do not take an interest in the affairs of your government, then you are doomed to live under the rule of fools.” – Plato……… yep, it still works
Well first off.. it’s ….NOT… a “CHINA VIRUS stimulus bill”… it’s communist occupier blue state bail-out bill. No matter how much President Harris and her dimwitted side kick biden say they are going to tax the rich it’s the middle class that …ALWAYS… pays for it and takes it in the keester… as it has in the last 70 years of obscene taxes. This same scam has been tried before and as before it will end in complete disaster and crush whats left of the middle class. Then these evil sons of mother dogs will usher in their beloved communism. All the same working class… and… them the overlord elitist. Obliterating any human spirit to advance and strive for better human condition. SICK AND WRONG!
Socialist democrats have been using this same old, worn out, “tax the rich” canard since at least 1909. Anyone with an IQ over that of a sponge knew that when buydin said, he was getting rid of the Trump tax cuts, it meant sharp tax increase for everyone.
I say if they REALLY WISH to start ‘taxing the rich’, fine.
START WITH 90% tax on EVERY CONGRESS PLEB, everyone in PERVYWOOD, and all the overpaid hacks in the NBA/NFL/ MLB and the like…
AND IF THOSE FOLK are ok with it, THEN WE CAN TALK about shanking over WE the tax victim…
wont work… the communist occupiers will just give themselves a 6000% raise in the middle of the night … like the last time these treasonous sniveling little excrement’s did. one option left
WHICH is why for years, i’ve been saying THEIR PAY NEEDS to get cut AND THEY need to get a 75% or higher vote in the affirmative, FROM THEIR CONSTITUENTS< before they can ever give themselves a pay rise.. AND EVEN THEN ITS Only tied to how much of a rise they vote in for the military!
Rats have major tax increases every time they obtain control of government: 1993, 2009, 2013 (Bush tax breaks expired), and now 2021. The tax increase proposed by Biden is a whopper. The tax increase along with major new regulations especially for energy, labor cartel protections, major expansions in welfare, and other rotten legislation will drive investment from the USA, dramatically increase the cost of energy, and substantially increase the cost of unskilled labor.
For tax increases, Biden is proposing major tax increases on the most productive. There is no free lunch. Tax increases will move money from the productive part of the economy to the unproductive part of the economy.
– Effective elimination of loss carry forward. The annual income tax is an arbitrary period. Loss carry forwards allow businesses to invest with heavy losses with the possibility of eventual profitability. Many successful companies have used investment capital with loss carryforwards to long term profitability.
– Tax increases on dividends and capital gains will destroy savings of seniors. The major to generate income from senior is dividend paying stocks. The tax increases will crush dividend paying stocks.
– Tax increases on small businesses were the hallmark of the Trump tax cut. Many small businesses benefited from reduction of tax rates to 21% allowing these small businesses to reinvest profits rather than have profits annually taxed away.
Has anyone considered ‘reducing’ wasteful government spending? Is that racist?
HOWS about reduce or eliminate ALL THE ******* FRAUD In the welfare and other entitlement programs!
Yes reducing government spending is racist because most of it is going to keeping blacks and other minorities on the progressive hand out plantation.
Roosevelt you are not, Joe BinBiden.
And even the raising of corporate taxes will affect those at the lower income levels the most. The increase in taxes will result in an increase in prices which will hit those at the lower economic levels more than those in the high end. The rich get richer and the poor will get poorer.
this idiot thinks he is robin hood.
i think he is robbing hood.
Same old story tax companies and the rich and it all flows down to the middle class in higher prices. They will all make up the difference in a higher tax.
When you tax something, you will get less of it. 2.1 TRILLION? If they got half I would be surprised. I was planning on continuing to work for the next 3 years, that plan is now going to change. How are they going to tax me then?
THE more folks get taxed into oblivion, THE LESS WHO WILL WISH TO WORK.
They WILL find a way to tax you. SORRY!
Senile Joe is a lying piece of runny raw sewage. But we all knew that before he stole the election.