What the Real Biden Tax Policy Is and Why It is So Bad
I have written about the Biden tax plan and why it would be disastrous before. As with all schemes that would raise taxes on the American populace, it would severely limit economic growth because it would divert resources from investments to wasteful and failing government programs. However, upon reflection, I realized that that article needs a companion piece. It covers why the Biden tax plan would destroy America’s economy quite well, but doesn’t get into the specific details of the plan. This article on the Biden tax policy will.
What Are Biden’s Tax Policy Positions? What would a Biden Administration Do?
As the graphic at the top of the article shows, the top marginal tax rates under a Biden Administration would be quite high. The Biden tax policy would be to raise taxes substantially on every American. The Americans in high-tax blue states, especially California and New York, would suffer the most, as a few prominent rappers, such as “Lil Pump,” Wakka Flocka Flame, and 50 Cent have noticed and spoken out against. Now, more serious people have also spoken out about why Biden’s tax policy ideas are bad ones. But, I do think it’s interesting that even rappers, who are never conservatives, can see just how terrible Biden’s tax policies would be.
Or, that’s at least what conservatives think about a potential Biden tax policy, what does Biden say? According to him, the Biden tax policy is to not raise taxes on Americans making less than $400,000 a year. He says it would help middle-class families and not hit them in the pocketbook at all. However, when pressed, Joe also says that a key piece of Biden tax policy is to get rid of all the Trump tax cuts. The corporate tax cuts, the tax cuts for individuals, the increased deductions, everything.
Those two pieces of the Biden tax policy plans seem incongruous. How could he get rid of tax cuts on one hand while also not raise taxes on the average American? The Trump tax cuts were good for everyone and lowered taxes by 14.5% for taxpayers making between $40,000 and $500,000, according to MarketWatch.
Now, if those tax cuts lowered taxes by ~14.5% for most people making between $40,000 and $400,000, how could Biden get rid of them but still not raise taxes on Americans in those income brackets without then passing a different round of tax cuts, something he hasn’t planned to do? The different sides of the Biden tax policy plans make no sense because they don’t match. He can’t get rid of tax cuts without raising taxes.
So, in that respect, Biden’s tax policy views seem quite similar to his views on fracking. In reality, they are quite radical and un-American- he wants to get rid of fracking and raise taxes- yet he pretends they’re not while campaigning.
The Details: How Your Taxes Would Increase Because of the Biden Tax Policy Regime
For that reason, I did some research and found out what the actual tax policies would be for a Biden Administration so that you can see just how terrible and expansive Biden’s tax raises would be. Here are the details, most of which come from the Tax Foundation and Investopedia.
- Biden would, as he has openly stated, enact policies that would raise taxes on those making above $400,000 a year. Those policies include raising the income tax, raising capital gains taxes, and further changes to the tax code. For example, he would also cap deductions at 28% and raise the top marginal tax rate from 37% to 39.6%.
- In addition to those policies, Biden would go even more after those making more by imposing a 12.4% Social Security payroll tax for wages above $400k. The current cap is an income of $142,800, so that would mean a dramatic increase in taxation for those with higher incomes.
- Biden would increase the corporate tax rate to 28%. It is currently at 21%. That increase would hit every American in the pocketbook as it would lower corporate profits. That would decrease investment returns, cause companies to increase prices on consumer products (thus decreasing the money in the wallet of every American), and probably cause businesses to lay off workers, or, at the very least, slow wage growth, which has been tremendously high under Trump. So, even though this tax is ostensibly on corporations rather than individuals, it would still decrease income for most Americans in one way or another.
- Similarly, Biden would establish a corporate minimum tax on book income. Right now, corporations are only taxed on profits. Under this piece of the Biden tax policy regime, they would be forced to pay taxes on book income rather than net income, which would drastically decrease their cash flow. As with the increase in the corporate tax rate, that would hurt investment returns and American workers.
- Biden would tax capital gains at a 39.6% rate, which is drastically higher than the current capital gains rate. That increase would hurt every American with an investment account, thus demolishing his contention that his tax increases would only be on those making $400,000 or more a year.
- Biden would phase out the Section 199A qualified business deduction, which currently allows small business owners to deduct a portion of their income so that their tax rate is similar to that of large corporations.
- Biden would expand the death tax by taking it back to 2009 levels.
- He would eliminate tax deductions and credits that have helped the American real-estate industry thrive. For example, he would get rid of the stepped-up basis that allows families to pass down real estate without paying taxes on the gain. This would also lead to a large tax increase for the middle class. With the changes to the stepped-up basis in the Biden tax policy regime, your children would have to pay far more in taxes on any real estate that they inherit.
- Biden would reimpose the ACA individual mandate on Americans, thus dramatically increasing taxes for many Americans, especially those making less than $400,000.
For further details, here is a video that Americans for Tax Reform made about the potential Biden tax policy regime:
The simple truth is that the Biden Campaign is lying about what a Biden tax policy regime would look like. Biden is not a moderate. His tax policies, like his energy policies, would not be moderate. They would be quite radical.
With Biden in charge, your taxes would increase, your investment returns would decrease, and your wage growth would plummet. Furthermore, according to the Tax Foundation, GDP would decrease by 1.62%, capital stock in America would decrease by 3.75%, and over 500,000 jobs would be lost.
So, despite what he says, Biden’s tax plans would increase your taxes even if you make less than $400,000. That’s yet another reason why Americans are better off under Trump and need to ensure that Trump wins again in 2020 and Biden loses in a landslide. If you want more money in your wallet, vote for Trump.
By: Gen Z Conservative
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