Finance / Opinion / Politics

Oh, For the Love of Taxes!

biden

Photo by Adam Schultz

Taxes and the economy are top campaign issues that can sway voters blue or red. Democratic nominee Joe Biden has made big promises to the American public not to raise federal income taxes on earnings under $400,000. If elected, the former VP wants to increase taxes on wealthier individuals and corporations instead. However, many experts argue that Biden’s plan will stall or harm the American economy that is attempting to rebound amidst COVID-19. Bear these significant points in mind.

  • It generally takes a lot of energy, long working hours, and sacrifices to earn money. What does it do to the hard work ethic, entrepreneurial spirit, and the human psyche to have the federal government swoop in to take more of our earnings?
  • As people buy products and use services, they fuel the economy. By taking money out of earners’ pockets, they will be less likely to spend, invest, or reinvest in the U.S. economy. This will lead to job losses, business closures, and a decline of investments and new business ventures.
  • There aren’t that many super rich people to pay down the deficit. In some states, people who earn $400,000 are in the top 1% of income earners. Thus, the “middle class” will have to bear the burden for Biden’s plan to work, if not by raising federal tax then by other means such as payroll taxes or reducing deductions. Therefore, earners below the $400,000 threshold should also be concerned.
  • Closing economic gaps in jobs, wage, and wealth is a deeply socialist idea embraced by Biden that goes against principles of capitalism and lower taxes. Socialist countries do not fare well economically, whereas capitalism is proven successful. Socialists favor wealth redistribution and collective control, whereas capitalists seek less control and want you to keep more of what you earn to invest and build a robust economy.
  • In a FOX Business interview, Trump warned that Biden will attempt to bring about the “biggest tax increase in history.” Biden’s plan calls for restoring the top income tax rate to 39.6% and that’s just the beginning. Once taxes are raised on Americans, it will be difficult to reverse the change. It will be a slippery slope as the government will take more and more of your money.
  • Biden’s tax plan to raise the Corporate tax rate from 21% to 28% would increase the cost of making investments, leading to less capital formation, and resulting in fewer jobs and lower wages for Americans. This would make American companies less competitive worldwide.
  • Biden wants to use portions of tax money collected to increase and extend federal government programs. Yet, many established programs run by the federal government are difficult to maintain successfully or squander taxpayers’ money.
  • In addition to increasing federal income tax on wages $400,000 and above, Biden aims to impose yet another tax on them; a 12.4% Social Security payroll tax, assumed to be half paid by the employee, half paid by the employer. Furthermore, this can be modified to capture taxes from a larger group of people, mainly the middle class.
  • Biden says that people who earn over $400,000 need to “pay their fair share.” However, folks at that earning level aren’t necessarily “rich.” In most instances it takes years of hard work to achieve that income level. Look at a married couple who earn $400,000 per year in combined income. Currently, they pay $80,000 in federal income tax, with additional state, city, and local taxes of $29,000. Next, there is Social Security at $14,000 and Medicare taxes at $8,500. Note that these tax amounts do not include living expenses such as mortgage or rent, car payments, insurance, childcare, food and clothing, additional medical expenses, college debt, investments, and retirement savings, and so forth. Of that $400,000, taxes already make up a whopping $131,500. Is that not already their “fair share”? After all, the government is taking nearly 33% of their income before Biden’s tax plan to take more. Where will he draw the line?

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Lee McQuillen
1 year ago

I have a son who has sacrificed much in order to make good money – providing for good educations for his children as well as experiences to enhance their knowledge. He should not have to “give away” more of what he makes! His creativity should not be stifled by government regulation. Anyone who is willing to work hard should be able to reap the benefits thereof.

The OLD Warhorse
1 year ago

All the Dems like to use the term, “Pay their fair share”. It does have a nice ring to it. Hell, it even rhymes! Notice they never, ever, ever, tell you just who the “they” are that should pay “their” fair share, nor do they ever tell you just how much or what “share” of “their” income would be “fair”. See, when they say that, YOU are supposed to jump up and shout, “Yea, “THEY” need to “PAY”. But that’s because you are led to believe that “The Rich” are anybody that makes more than you do. But, what if YOU are “RICH”? Let’s say you are a cop and your wife is a teacher and you live in New York. Your combined income is at least $100k even at the entry level. In New York, that will not get you very far, BUT at the Federal Level, one size fits all, so YOU are rich!

Brenda Blunt
1 year ago

Capitalism is the only way to go. The USA needs to grow on so many ways along with her legal citizens!

Larry Walker
1 year ago

I wonder how Biden came up with the $400,000 threshold. Could it be because since it matches the presidential salary, if elected he wouldn’t have to pay the tax increase?

aluminum head
1 year ago

Jo(k)e Bye – then. If he debates – he loses. If Nancy does not let him debate – he loses.
Donald Trump – Ultimate debater – ultimate “COUNTER – PUNCHER.” Smart man / tough man.
We need that man in the WH for, oh hell, 8 more years.

Dino Deplorable
1 year ago

Biden and his questionable partner are about as reliable as a knats ass in the arctic circle.

‘Nonymous
1 year ago

6 months after this election, I won’t even remember this twit’s name!

Sharon
1 year ago

It seems can’t agree with others here. Why is this limited to vote on others comments. This circus puppet needs to stay home with is unreality life.
More double dipping from government or does vice president retirement pay end. He tries many ways to double dip while making others unable to buy medicines and groceries.

Marie
1 year ago

BS…..Biden and the Democrats are the victims of thought reform. They won’t think and can’t think or listen. They have all lost their minds. Joe Biden is not running for President. Kamala Harris is. Be very, very careful and stick with the devil you know. President Trump has already proven himself and if he’s done it once, he can do it twice. Don’t be influenced by the BIG LIE of Marxism. It has never worked and never will. It is a hideous power grab that makes slaves of all people. Slaves to evil governments.

John A. Fallon
1 year ago

When will we ask the right questions about the IRS? Like how much doe’s it cost tax payers for salaries, retirements, paper products,buiding maintenance and whatever else they spend our money on. We could greatly reduce government with reduction of force STARTING WITH THE IRS (democrat attack dog) we would have billions to spend on more important things like implementing an educational system, GOD KNOWS WE DESPERATELY NEED ONE!

toprudder
1 year ago

The Dummycrats talk a lot about “income equality.” But, the middle class is disappearing, leaving us with just the upper class and the lower class. As evidence that the middle class is disappearing, I offer a look at the brands of automobiles that have been discontinued. Plymouth, Pontiac, Oldsmobile, Desoto, Saturn, Mercury, Edsel. All of these were cars marketed to the middle class buyers. I admit there has been some foreign brands that have infilled the market, but that is another condemnation for not taking better care of our domestic, U.S. industries.

Bill Brown
1 year ago

Choose you sources of News.  Reject all Mainstream Media, National and Local!  We are being brainwashed!!  SUE THEM when they lie and defame!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Bill Brown
1 year ago

When Trump/Pence wins this November, the Democrats will start riots everywhere they can!!  Be a Counter-Revolutionary!!!  Be ready to defend your Family and your Neighborhood!!!!  Stand-up for America!!!!!

RonB
1 year ago

If Biden raises taxes he won’t remember he did it and will raise taxes again. This will be a double disaster for Americans. What else could be expected from a senile frail radical socialist. Special thanks to comrade Bernie for helping Biden with his economic disaster plan.

Chuck
1 year ago

We love our uncle. Just not Joe.

Bill Brown
1 year ago

Pelosi says we are unAmerican if we do not want to give the Government more money!! We say the Government has too much money already and the Communist Dems are spending our hard earned money trying to destroy our Country!!! Stand-up for America!!  Remove Every Democrat!!!!!

JohnH
1 year ago

Listened to Trump last night, he said will plant flag on Mars in next four years. I do not want see any tax money go towards this goal until the Government actually starts working on the $25 Trillion US debt. Do not leave this for the next generation to deal with or ???

Press ONE for English
1 year ago
Reply to  JohnH

EXCELLENT point but worth elaborating on. This whole space boondoggle is and has always been nothing but a money pit. If private businesses want to invest in space, let ’em. But tax dollars? No way, unless maybe for defense strategies. Let’s take care of our problems here on earth before we start venturing afield to spread the misery.

JohnH
1 year ago

Someday, the WH needs to start balancing Fed Budget & paying down debt. Covid-19 & stimulus package will tack on $Trillions this year, & have not heard anything from Trump except he will do more tax cuts if elected. What Economic courses am I missing?

Press ONE for English
1 year ago
Reply to  JohnH

You are right, of course, but you are missing an important factor. Trump is not a king. He’s a cog in a machine. A key cog, yes, but still. There is no appetite on either side of the aisle to do what you are proposing. They have shown that they will fight tooth and nail to nurture The Machine and stymie Trump. That, plus the reality he has to get himself re-elected. That severely constrains his range of options until after the election. No one since Reagan has done more for the average American than the Orange Man. And if not Trump, who? Trump is far from perfect in many ways. But he’s not only the best choice this November, he is the ONLY choice, and I will enthusiastically be casting my vote for him.

John A. Fallon
1 year ago

Tax rates are MEANINGLESS, We have to get rid of the excessive tax write-offs that enable the rich to “HIDE” most of thier income, when somebody starts to talk about a flat tax of ten percent why is it ALWAYS the rich that fight against it? Because it would at least DOUBLE the amount of taxes they pay, I think the rich should pay a thirty percent flat tax at least to make up for all thier “CHEATING!!

Press ONE for English
1 year ago
Reply to  John A. Fallon

I agreed with you right up to the point where you advocated a discriminatory tax against “the rich”. Yes they are cheating and yes it is wrong but you don’t fix one wrong with another one.

Steve w Harmon
1 year ago

Good old Dims, you can ALWAYS count on them to use the politics of envy. People that go along with that philosophy should be asked if they have EVER received a paycheck from a poor person. Smh, so many “Gimmee, gimmee” idiots in My America today. #2Or3Or4TermTrump

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