Advocacy / Finance / Opinion / Politics / Small Business / Taxes

Breaking: Biden’s Tax Hikes Could Mean 60% Effective Rates

taxWashington, DC – The Tax Foundation, a leading non-partisan economic think tank, has calculated that President Biden’s proposed taxes would increase taxes on wealth to over 61%. President Biden has proposed a number of tax hikes aimed at bringing in more revenue for Democratic spending proposals. The Tax Foundation and other independent economists have shown how these proposals could kill up to a million jobs in the US economy. The previous administration’s low tax and regulatory policies led to a thriving economy, record-low unemployment for women and minorities, and soaring markets, even against the headwinds of imposing heavy tariffs. The Tax Cuts and Jobs Act, enacted in December of 2017, lowered taxes across the board on individuals and businesses. The Biden administration has proposed going the opposite direction in creating a new death tax through capital gains due at death, raising the capital gains rate over 40% for some households, raising the corporate tax rate, and changing “step-up in basis,” which helps businesses continue through multiple generations.

The table below lays out how the Biden administration’s proposed tax hikes could mean a 61% effective tax for some taxpayers.

https://taxfoundation.org/joe-biden-estate-tax-wealth-tax/

Congress is now gearing up to consider both the administration’s American Families Plan and American Jobs Plan, which includes nearly $4 trillion in new spending financed by a number of tax increases. If all of these tax increases became law, family-owned and operated, businesses will face a much heavier tax burden when attempting to pass to the next generation of ownership. Inventory heavy businesses, farmers, and ranchers who have the entire value of their business tied up in land and equipment will likely not have enough cash on hand to pay 61% of their businesses to the government at death, causing more consolidation of family businesses into larger multinational firms – the exact opposite of the intended effect of the death tax. AMAC Action will continue to keep you updated on the latest news and economic statistics on the administration’s policy proposals.

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BlaznSS
2 months ago

I think taking the lifetime salaries away from them would be fair. Also they should NOT be able to give themselves pay raises.I did 37 yrs in the govt and I only got about 70% of the average of my 3 high years.. Then only get a measly COLA in January…. only to have it eaten up by Healthcare costs… Some years I’ve actually brought home less than the year before due to rising Healthcare. The system is BROKEN. It has been for years. Taxibg corporations will NOT work. They’ll only pass that money onto us.

Max
2 months ago

It is time to get rid of the IRS and do a National tax percentage where everyone shares the burden. Where it has been pointed out, the RICH will find a way out and the small business and the middle class will be taxed out of existence. This is what happened to the Roman empire and this country is on the same path.

Mary
2 months ago

The rich will not pay a dine. They will figure out how to get around the taxes to keep their money. The taxes will destroy small businesses and the middle class. Many jobs will go over seas again. The rich will get richer and the poor will get poorer! Inflation and depression will destroy America. China will take over the US.

Ruth A Lance
2 months ago
Reply to  Mary

There are many tax loop holes that only the richer Americans can claim. Therefore, they won’t be paying the amounts that Biden envisions. The right way is to not raise taxes but get rid of these tax loop holes.

Lee S McQuillen
2 months ago
Reply to  Ruth A Lance

Frankly, the best way to deal with this is to leave Trump’s tax programs alone and stop spending so much! Handouts are way out of line and are not watched to be sure there’s no “errors” as well. Pork programs need to go away. Let’s concentrate on the good of the entire country, not their own little worlds.

Oren
2 months ago

Remember what happened in France when they got smart and taxed the “rich” a couple of years ago? Most of them packed up and left France. So much for that planned rape job. Plan on the same here. You think Rosie and her crowd will leave?

Ruth A Lance
2 months ago
Reply to  Oren

Hopefully

Tim Thompson
2 months ago

The great lesson to be learned here is that Democrats influenced by communist-socialists want every person in the United States to be the same, poor, dependent on the government. They have kept interest rates at zero for the past 12 years effecting retirements causing the elderly to dip into their savings instead of the ability to make some decent interest like past generations who saved and made personal wealth on those dollars they saved. We now are seeing the government tax us beyond belief so they are causing family’s to barely survive with for instance excessive blue state taxation and real estate that can be barely afforded. All in all the Democrats are a destructive party who seem to hate our history of exceptionalism. For those who voted for Democrats you are responsible for this mess. Trump had it going our way in making America great again after Obama’s destructive and lying administration. Nice job.

Carol
2 months ago
Reply to  Tim Thompson

Amen Tim! We will become the next Venezuela with Democrats getting away with all this! God is watching all this and these leftist will one day be held accountable for all the lives that are lost and those that are destroyed because leftist greed, arrogance, and pride!

Old Silk
2 months ago
Reply to  Tim Thompson

True, except that President Trump could have and should have stopped the steal in real time. I am still quite annoyed with him over his ordering that it merely be watched. Things do not necessarily happen the same way twice, so just making sure we all got out and voted in huge numbers was not the answer as it was in 2016, especially when it was satellite driven and the space force was created by 2020.

Charmine
2 months ago

All this because the socialists in power in our country can’t control their spending habits. God Help Us All.

Stephen Russell
2 months ago

Lead to Great Depression 2 later?

Danni
2 months ago

YEAH, and another thing. Is pelosi going to give up 60% of her 100 million. Probably not!! They, the democraps will exempt themselves. Once again, do as we say, not as we do!!!!

Patty L
2 months ago
Reply to  Danni

Term limits would help!!!!!

Harold
2 months ago
Reply to  Patty L

Yep

Danni
2 months ago

It’s time for a tax revolt. This is ridiculously stupid. NO, BUT HELL NO!!

Victoria Johnson
2 months ago
Reply to  Danni

They’ll just bring back, or come up with another, ‘Lois Lerner’ to thwart any of your efforts to revolt. I’m sure they’ve cultivated many in the wings to undertake the job. Good luck.

Tim
2 months ago

There’s half of the population that thinks this is a great idea. Be afraid, very afraid.

Rick
2 months ago

Voting in this Administration will ultimately destroy life as we know it in America!! The liberals have elected a person and his personnel that believe they can tax the country into prosperity. A fantasy to say the least!!

Robert
2 months ago

The Party that Hates America wants to bring us to our knees. Let us stand up together to SAY NO!!

Victoria Johnson
2 months ago
Reply to  Robert

Okay. I’m saying “no”. Now what?

Stephen
2 months ago

Insane and stupid beyond all belief

Roger
2 months ago
Reply to  Stephen

Insanity…..

Victoria Johnson
2 months ago
Reply to  Stephen

Not “beyond belief” at all. This has always been the Dems SOP – standard operating procedure.

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