Government Watch / Instagram / Politics

Democrats Unveil Plans To Raise Taxes, Breaking Biden’s Key Promise

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As Democrats struggle to pass their massive $3.5 trillion spending bill, many are criticizing the bill’s radical components. In addition to expanding the federal welfare system, imposing new extreme climate policies, and further expanding the increasingly politicized IRS, the bill would raise taxes on millions of Americans in order to pay for hundreds of billions in new spending.

Biden and his administration proposed their initial extreme tax hikes on April 28, 2021. The hikes include raising the top corporate income tax rate to 28% from 21%, doubling the long-term capital gains tax rate to 43.4% from 20%, and raising the top individual tax rate to 39.6% from 37%. Biden’s proposals would grow total federal tax revenues by approximately $3.6 trillion over the next ten years, making his proposed tax hike the largest nominal tax increase in American history and the largest percentage tax increase since 1968.

These tax increases would be detrimental to virtually all Americans. According to an estimate from the Tax Foundation, Biden’s proposals would decrease America’s GDP by 0.9%, decrease average wages by 0.8%, and eliminate at least 165,000 full-time jobs. This means that Biden’s tax hike would further setback his already lagging economy. In August, the U.S. economy added just 235,000 jobs instead of the forecasted 720,000, a miss of almost 500,000 jobs. Some industries, such as the retail and restaurant industries, lost 29,000 jobs and 42,000 jobs, respectively. According to the Bureau of Labor Statistics, there are currently 8.38 million Americans considered unemployed. Comparatively, there are estimated to be approximately 10.9 million job openings currently available in the U.S. This means that all or nearly all currently unemployed Americans could get a job but are simply choosing not to. This is likely due to the very welfare state that Biden and his Democrat allies are seeking to rapidly expand. This is a recipe for economic disaster.

As a result of the pushback received from Biden’s proposed tax hikes, House Democrats have released a slightly scaled-back version of tax increases. The most recent House Democrat proposal includes $2.1 trillion in tax increases through the next ten years, compared to Biden’s proposed $3.6 trillion in tax increases over the next ten years. Just as Biden initially proposed, the House Democrat proposal would raise the top individual income tax rate to 39.6% from 37%. However, the recent proposals from Congressional Democrats would also raise the top corporate income tax rate to 26.5% compared to Biden’s proposed 28%, raise the tax rate on long-term capital gains to 25% compared to Biden’s proposed 43.4%, create a new 3% surtax on income in excess of $5 million, double the federal excise tax on cigarettes to $2 per pack from $1.01 per pack, and would force drug manufacturers to comply with new artificial price controls by threatening them with an excise tax as high 1,900%. According to the Congressional Budget Office (CBO), the proposed drug price controls will block between 8 and 15 potentially life-saving drugs from being introduced into the market over the next ten years.

The House Means and Ways Committee approved the trimmed version of increased taxes on September 15, 2021, and the House Budget Committee passed the $3.5 trillion bill that is deceptively titled “The Build Back Better Act” on September 25, 2021. The bill now awaits a vote on the floor of the House of Representatives.

The negative economic effects of the Build Back Better Act would be even more severe than Biden’s initial proposals. According to a recent study conducted by the Texas Public Policy Foundation, the Build Back Better Act would kill a whopping 5.3 million jobs over the next ten years, reduce America’s GDP by $3.7 trillion over ten years, and reduce the income of Americans by $1.2 trillion throughout the next ten years.

In addition to crippling America’s economy, the tax increases proposed by Biden and Democrats in Congress violate one of Biden’s top pledges. Prior to the 2020 presidential election and after taking office, Biden and his administration have promised not to raise taxes on anyone earning less than $400,000 per year. To quote Biden back in October of 2020, “Let me be very clear: If you make under $400,000 you won’t pay a penny more in taxes under my administration.” White House press secretary Jen Psaki continued to promote Biden’s promise back in March when she said, “The President remains committed to his pledge from the campaign that nobody making under $400,000 a year will have their taxes increased.” Most recently, Biden repeated the promise back in May when he claimed, “Nobody making under 400,000 bucks would have their taxes raised, period, bingo.” However, Biden’s plan would do exactly what he pledged not to do by raising taxes on millions of low or middle-income earners.

First, the increase in cigarette excise taxes to $2 per pack from $1.01 will disproportionately impact low-income-earning Americans. According to the CDC, nearly 60% of American smokers earn less than $25,760 per year. Since approximately 34 million Americans currently smoke cigarettes, this means that at least 20 million low-income Americans will immediately be impacted by the proposed tax increase, a clear violation of Biden’s pledge. Additionally, the corporate income tax increases proposed by Biden and Congressional Democrats would negatively impact up to 1.4 million small businesses. Since the majority of small businesses have less than $400,000 in annual revenue, hundreds of thousands of small businesses operating as C-corps and many small business owners that earn less than $400,000 each year will face higher tax rates, another apparent infringement of Biden’s promise.

The Democrat Party is currently in shambles as factions within the party continue to promote their own forms of tax increases. Due to opposition to corporate and individual tax increases from Senators Joe Manchin and Kyrsten Sinema, Democrats are now resurrecting their efforts to tax greenhouse gas emissions in the U.S., as well as tax imports based on environmental regulations in the country of production. This comes as Democrats in Congress struggle to come to a consensus and scramble to pass their agenda. It should be noted that a tax on greenhouse gas emissions or a tariff on imports based on environmental regulations in the country of production would also likely violate Biden’s pledge to not raise taxes on anyone making less than $400,000 annually.

Despite what Biden previously promised, Biden and Congressional Democrats intend to raise taxes on millions of Americans earning less than $400,000 per year. The solution to Biden’s radical proposals is not a scaled-back version of tax increases that will further slow the economy. In fact, Americans do not need or want any increased taxes at all. Instead, Americans want and deserve lower overall taxes and lower overall costs of living. Biden and his Democrat allies either do not understand this or simply do not care.

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jocko
1 month ago

TRUTH AND libs ARE POLAR OPPOSITES

Eduardo
1 month ago

Something wrong in this picture.
I have spent all my life e-a-r-n-i-n-g my life and saving every possible dollar until I retired. And now my full time job continues to be saving, as far as I can see, like every decent American. And now these good-for-nothing Communists are spending Trillions of dollars they are not going to feel…

Eddie Van Halen
1 month ago

( D ) communists / demo-crats have always had 4 tenets –
according to my elders –
TAX
SPEND
LIE
CONTROL

Enuf Said
1 month ago

Why is this an article worthy of the time to read it? Of course, Biden will try to get taxes raised. What other choice does this LYING POS have?

Karen
1 month ago

If we last long enough, we have to get the win in 2022. C’mon Reps, do something to stop this madman Biden. For me, I’m done.

Eddie Van Halen
1 month ago
Reply to  Karen

Karen, it’s a WH full of ( D ) communists that are making the calls and count Soros in as well.

Jim
1 month ago

Of course you listed what it would do to our economy and country. That probably put smiles on many democrats, sell outs and other experts on our night time talk shows. The republicans, that’s another sad story. Grow some my old party.

Hal
1 month ago

From what I have discerned, it appears that the Biden Puppet Show is hitting the Nation hard with INFLATION (a surreptitious way to raising taxes) and increasing in the normal ways. That facilitates the DemocRats to funnel some wealth to the partisans and partisan supporters of the DemocRat Party. This is a slightly undercover method of Communistic processing deliverance of Governance (i.e., extracting money and assets to support the continuance of Party Rule over the people … NOT via Constitutional Democracy …. made easier by rigging elections and the citizens allowing it to occur.(and without punishment or recourse).

Sara J Grosso
1 month ago
Reply to  Hal

Beautifully said

LLL
1 month ago

Another good article. AMAC is on the front line of the battle against Democrat politicians and policies.
This is all fine as a means to inform voters. However, it appears that AMAC and, for that matter, the entire Republican Party apparatus, have missed the essential lesson of the last presidential election.

The Democrat Party is a corrupt political enterprise bent on increasing power and accumulating personal wealth. They care about nothing and no one else. They have demonstrated that they are willing to do anything to “win,” including voter fraud; moreover, they are emboldened by their recent successes.

With a complicit media and a hands-off court, Democrats will be able to steal elections with impunity. Republicans will not “win” future national elections without a proactive, comprehensive, creative strategy to stop the cheating. A few, already-red states passing voter ID laws is superfluous. Republicans will have great polls and great rallies but still be outsmarted and lose. And then, after the damage is done, we will again be treated to the GOP’s hapless whining, which the press will report as the pathetic antics of sore losers.

AMAC could help by prioritizing the election integrity issue, because this issue overrides all others. Unfortunately, I see no sense of urgency and no innovative tactics coming from the National Republican Party to combat what’s so obviously coming their way. It’s difficult to be enthusiastic or optimistic about the prospects for an apparently clueless organization with so little sense of self-preservation.

Andy Mangione
1 month ago
Reply to  LLL

Hi LLL. AMAC has prioritized the election integrity issue. Our members told us back in December, 2020 that we should and we have. We have been instrumental in getting election integrity legislation passed in Kentucky, Florida, Arizona and Texas. Our members were instrumental in getting election integrity legislation passed in the state legislature of both Michigan and Pennsylvania, although the Democrat governors of those states vetoed the bills. I suggest you visit the home page of our website and review the 2021 AMAC Action Advocacy Mid-Year Report. It details the work we’ve done on election integrity as well as other priority issues for our membership. Thank you!

nick patriot
1 month ago
Reply to  Andy Mangione

Just so your made aware, The Commiecrats in the peoples republic of Pennsylvania where I live and vote are already blasting the airwaves with mail in, mail order ballot info for the November election. Guess there will be no use again of standing out in long lines for 90 minutes in the cold. Did it last time. Will not this time. The commiecrats will win mail in ballot elections FOREVER! The Rino’s will do NOTHING!

Veteran
1 month ago

A Democrat breaks a promise? This is my shocked face – not! A party that has no problem with cheating millions of Americans out of their votes by fraud and is hell bent on ruining, and destroying our country, and abandoning and marooning hundreds overseas, as well killing uncounted citizens with experimental drugs, and them “breaking their promises” to not raise taxes (as if there ever was a Democrat who did any such thing) is the least of a surprise? It would have been nice if the author would have noted that the President is incapable of carrying out his duties, or that Obama is carrying out an unconstitutional third term by proxy, or that our “Speaker of the House” was according to her and General Milley’s statements planning and insurrection against the last President of the United States while he was still in office. Yet, we are paying no attention to the organized crime syndicate behind the curtain, no matter how much smoke and fire there is. It seems we’re not in the U.S. anymore Toto!

Sara J Grosso
1 month ago
Reply to  Veteran

Beautifully said!

Victor Bruce
1 month ago

Are we Republicans going to let biden ruin our country? We elected you to stand up and fight for us. With the impending inflation and rising prices and taxes, our retirement savings will be almost worthless. It will be hard to find a job at 72 years old. Pro is the opposite of con, is that why our government is Congress?

HocasPocas
1 month ago
Reply to  Victor Bruce

I didn’t vote for the jackass

Richard Hennessy
1 month ago

Of course Democrats want to raise taxes on middle class citizens–that’s what they DO!

Garye
1 month ago

Another example of the dishonest,corrupt Democrat party and the joebama,commie Harris clown show!
Where are all the losers who voted for these anti American traitors???
Oh wait, only some ignorant fools voted for them,their majority was from cheating in Our elections!
As always – don’t believe ANYTHING democrats say, it’s ALL self serving LIES!

johnh
1 month ago

Congress needs to raise payroll taxes for Social Security & Medicare to keep them solvent. They keep kicking this problem down the road to the next administration instead of action. Trump said he would roll this into General Fund if he won 2020 election & he never did explain why — but I suspect it is because the Fed Govt owes this fund a lot of money & interest on this. People that make $400K per year could care less , but the middle & lower class count on this for their retirement.

Garye
1 month ago
Reply to  johnh

No John, Congress needs to STOP spending and reduce taxes!
It’s OUR money!
I say STOP paying these career politicians all together if they stay longer than two terms!
Without a way to enrich themselves,they’ll leave.

Sara J Grosso
1 month ago
Reply to  Garye

Good Idea. But no one will enforce it.

PaulE
1 month ago
Reply to  johnh

This has all been explained to you a number of times already on this site. Are you dense or do you just keep repeating yourself so you can bash Trump? My guess it is the latter. You constantly reference talking points or ideas pitched from CNN or MSNBC. Neither network known for deep thinkers or accurate news reporting. Perhaps you should spend more time with the like minded at AARP.

Sara J Grosso
1 month ago
Reply to  johnh

We do NOT need any raise in ANY freaking taxes.

HocasPocas
1 month ago
Reply to  johnh

Have to have workers in order to get taxes

Allen Kline
1 month ago

I am retired eleven years and this last 18 months have been getting increasingly difficult financially. This week my 1/2 pound of sandwich meat went up 50 cents. I am driving less due to the price of gas. The proposed tax increases, plus the new initiative of IRS against conservatives threaten to make poor. Of course it is what Biden wants, to make us dependant on him so he has control on what we do, just as Hitler did 80 years ago. We are headed toward China dominating everything we do, as they use Biden, who is in their back pocket.

Sara J Grosso
1 month ago
Reply to  Allen Kline

Our family agrees with you!

johnh
1 month ago

The cigarette tax is scary to me & Biden might decide to put additional $1-2 tax on gallon of gasoline as another way to push his electric car agenda. He does not have a clue that all Americans cannot afford to buy a new electric car & I know many people that still own their gas powered autos for over +20 years.

Garye
1 month ago
Reply to  johnh

Throw them out!

Eduardo
1 month ago
Reply to  Garye

Did you guys see the Clint Eastwood movie, “Hang’m High”?

PaulE
1 month ago
Reply to  johnh

Biden is also supporting a mileage tax as well. Democrats have one over-arching goal: To confiscate, through taxation and regulation, all the money in the hands of the citizens and put it their bank accounts. Everything else about equity, equality of outcomes, social justice and the rest of that nonsense is just a smoke screen to mask the huge transfer of wealth from the masses to the very few at the top of government. In case you didn’t know, that is exactly what most socialist regimes are really all about. Why do you think people like Putin, Xi and all the other socialist leaders are all incredibly wealthy? Maybe you shouldn’t have voted for Joe Biden, if you’re concerned about being taxed into poverty.

Elena
1 month ago
Reply to  PaulE

The mileage tax would do me in. I live in an itty bitty town. You drive in one side and can see the other. I drive 45 mi. to work and 45 mi. back home. That’s 90 mi. a day … for work only. There are no good jobs in my town. Most folk here are retired.

Sara J Grosso
1 month ago
Reply to  PaulE

Excellent!!

Eduardo
1 month ago
Reply to  johnh

Yes, he does have a clue. That will be th new way of travel, 100 miles around your house. That’s the real purpose.

johnh
1 month ago

It was my understanding that Trump tax cuts were good thru year 2025 & he did this without going thru Congress or not?? Now Biden wants to raise taxes that Trump cut. How does the top Corp tax to 28% and the top Individual tax of 39.6% compare to what it was before Trump tax cuts?? The Capital Gains tax increase to 43.4% seems huge. Is Biden saying all individuals making under 400,000 per year will not see a tax increase ???

Garye
1 month ago
Reply to  johnh

biden and the democrats LIE

PaulE
1 month ago
Reply to  johnh

Here’s an idea JohnH, why don’t you stop watching CNN or MSNBC all day. Also stop believing anything coming out of Joe Biden’s mouth. He lies constantly, as does everyone in his administration. You clearly have no clue about what is going on, yet you make ludicrous assumptions constantly. Try going on-line and reading the actual congressional legislation on the .gov sites. Educate yourself, so you understand everything that the Democrats are proposing to do.

Sara J Grosso
1 month ago
Reply to  johnh

You are beyond crazy if you believe that. I can tell you this: Gas prices were UNDER 2.00 a gal. when Trump was President. Unemployment was the lowest it had been in 30 years when Trump was President. We were NOT dependent on oil from other countries for the first time in 50 years when Trump was President. We were self sufficient with our own oil from our own country when Trump was President. Big businesses were coming BACK from other countries when Trump was President. China for the first time in 30+ years started paying US money when they hadn’t paid us one red cent in all those years, when Trump was President. Illegal immigrants had to go through a process to enter our country and all illegals that were criminals, gang related, drug related were sent back and a damn wall was built when Trump was President. Small businesses flourished because most of the red tape was eliminated when Trump was President. The police were honored when Trump was President. Our Veterans were honored and were getting care that they deserved when Trump was President. We could find groceries on our stores shelves when Trump was President. We could AFFORD to buy our groceries when Trump was President. Our taxes went DOWN when Trump was President. Our prices for drugs went down when Trump was President. (my eppie pen went from 400.00 to 10.00 for 2 of them for instance). I could go on, but I think you got my drift. biden/harris and most democrats are killing this country all for the name of socialism. If you voted for those morons, you are deserving of what you get. But most of us voted for Trump and we DO NOT DESERVE OUR COUNTRY GOING TO HELL IN A HANDBASKET.

HocasPocas
1 month ago
Reply to  johnh

Biden says whatever you want to hear

Hal
1 month ago

The Hidin’ Biden DemocCrats have to raise taxes to cover for the money they are serreptiously using to fatten their own partisan purses and continue their choke hold on the News Media. It take much money (otherwise known as bribes) to get political cover from the News Media and other self serving DemocRat connected persons to keep the public fooled. Was it the Pirate Jean Lafitte that commented when asked many decades back that commented that the American political system would work well until the politicians learned how to brdibe the people with theiar own Money? It looks like the DemocRats have polished this technique to a fine gleam.

Myrna
1 month ago

We are not surprised that Joe Biden promised whatever he thought it would take and is doing whatever his people want. He makes up things. It is as though he thinks there is no tomorrow.
Maybe for him it’s true.

HocasPocas
1 month ago
Reply to  Myrna

Yeah and his 3.5T socialist agenda isn’t going to cost anything. I have ocean front property in Arizona too, you know.

KAJ
1 month ago

Wow I’m shocked. Where is our real elected President. Get rid of the cheating, demoRat liars.

sick of the stupid
1 month ago

Sounds like everyone below this message is missing “The Big Bad Orange Man”
Now, hopefully the dopes who voted for or better still stole the election for Biden and his do nothing about the border VP Harris are killing us with new taxes, out of control spending and stagflation welcome to the 70″s. Maybe they are finally realizing what they had before a businessman who new how to run all the areas of our country with toughness, fairness and his American First policies. His Energy policies kept us Independent with low gas prices and full production, lower taxes spurred investment making the country wealthy, full employment was attained in every demographic and had Trump had a supply line that was opened for us to do business. Biden is doing nothing but punishing his own people and those who didn’t vote for him and is being lead by a group of radical communists who want to do nothing but control what we think, the news we get, who to see, when we can see them etc. etc. Then lets not forget the Pull out of Afghanistan and leaving 80 Billion in weapons for our enemies to have and tear apart and pick up our secrets.
So much for the mean tweets, I’LL TAKE THOSE ANYDAY COMPAIRED TO THIS NIGHTMARE ALL OVER AGAIN WELCOME TO THE JIMMY CARTER PRESIDENCY ALL OVER AGAIN. YOU YOUNG PEOPLE ARE FOOLS SUPPORTING THE DEMOCRATIC PARTY.

Ed J
1 month ago

At least Jimmy Carter was an honorable and truthful Christian man, regardless of his ineffectual policies. Today, we do NOT have honorable and truthful politicians — just the likes of Vertical Corpse Joe, VP Indian Princess Spread Eagle, Cruella Piglosi, Marx and Lenin Acolytes Bernie and Warren, Satan’s eunuchs – Schiff, Nadler, and Schumer (for starters). Add to the list all the other Demsheviks with a 4 Pinocchio rating [Pinocchios – Washington Post’s award rating for a liar caught in a lie (range is 1 to 4 Pinocchios depending on the magnitude of the untruth)] which is most of them.

HocasPocas
1 month ago

Trump wasn’t mean, he was straight forward about what was going on. Maybe these sissies need to quit worrying about who’s feelings are being hurt and get a backbone and suck it up buttercup. I would rather Trump tell me the truth no matter how it hurts than have some talking head telling me what they think I should be hearing

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