By Michael Todd
Recently Joe Biden and his campaign started saying they will not raise taxes on anyone making over $400,000, but is that true? The economy is one of the most critical factors in presidential elections, so Biden uses vague and misleading language to prevent answering his economic policy questions. This couldn’t be more true over his tax plans if elected president.
On countless occasions, Biden has promised to repeal the Trump tax cuts, which Kamala Harris reiterated during the Vice Presidential debate. If not repeal, then allow them to expire. Biden and Harris have repeatedly stated that only those making $400,000 a year would see their taxes raised. But that is not true, and they are lying to everyone. First, the Trump tax cuts reduced taxes on everyone making $25,000 or more. Repealing those cuts would immediately affect 82% of all Americans.
So what would people lose if Biden were to repeal the Tax Cuts and Jobs Act? It would impose large tax increases on everyone. For example, a family of four with an income of $73,000 received a tax cut of over $2000. A single parent with an income of $41,000 received a tax cut of $1304. Small business employers receive a 20% deduction for small business income. Child tax credits doubled for Millions of households. The standard deduction for millions of families doubled and reduced tax complexity.
The misconception over the Trump tax cuts as noted in a New York Times article, “To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law to brand it as a broad middle-class tax increase.” Joe Biden has been one of the most vocal parts of this misleading attempt to tarnish the tax cuts. Biden also lied when claiming only high-income households received a tax cut. His statement was given four Pinocchios by the Washington Post, who labeled it as “clearly false” and “Most Americans received a tax cut.”
Biden wants to raise the corporate income tax from 21% to 28%. If he were to do this, companies would have to rethink their plans for moving back to the United States. Raising the corporate tax would cost jobs, lower growth, and reduce investment. Corporations have to make money to stay profitable so they will reduce overhead costs, i.e., workforce. This would render American companies less competitive, forcing them to find less hostile tax havens such as China, India, Vietnam, etc. to manufacture their goods. Offshore companies will see America as being too risky to invest in.
Biden’s proposals for raising taxes in a time when we are recovering from an economic slowdown will inevitably reduce the prosperity we enjoyed before COVID and are currently regaining. His plan would leave Americans with less after-tax income while diminishing economic output. Worst of all, Biden’s plan would crush the markets, causing upwards of one trillion dollars in investment capital to leave the United States. So everyone needs to ask themselves, how will massive tax hikes help you and your family?