August 30th, 2021
NOT RICH? YOU’LL STILL PAY MORE IF BIDEN HAS HIS WAY!
According to Reason magazine, 60 Percent of taxpayers will pay more, and as many as 75 percent of middle income households face a tax increase under Joe Biden’s proposed tax-hike plan.
Eric Boehm, writing in Reason, referred to a study by The Tax Policy Center (TPC), a think tank based in Washington, D.C., which states that “Three-quarters of households earning between $75,000 and $100,000 annually would face higher taxes under Biden’s budget—with an average tax increase of $440.”
The study notes that “The tricky thing is that those higher taxes would be somewhat hidden for most individuals and households because they would be the result of higher corporate taxes.”
Biden has called for raising the corporate income tax to 28 percent, up from the current level of 21 percent. His budget also calls for raising the top marginal income tax bracket—which applies to individuals earning over $452,000 and couples earning over $509,000—to 39.6 percent, up from the current level of 37 percent.
That means, for example, a worker earning $80,000 annually would not see the government extract a larger share of her income via payroll taxes, which fund Social Security and health care entitlements, or via income taxes. But the higher taxes that Biden has proposed on corporations would, under the TPC analysis, be passed along to shareholders and workers in the form of lower investment earnings and compensation, respectively. As a result, many middle- and low-income individuals and households could end up with a larger tax burden even without seeing their taxes hiked directly.
“Uncle Joe Biden duped voters by pledging not to raise taxes on American families earning less than $400,000 annually,” said Jim Tobin, economist and president of Taxpayer Education Foundation (TEF). “Now we know that more than 60 percent of taxpayers will face a higher burden under Biden’s first budget plan.”
Boehm concludes, “Instead of promising that it’s possible for America to deal with its current fiscal mess and massively expand the size of government by merely taxing the rich, Biden should be honest about what he’s proposing. A more expensive government means higher taxes on almost everyone.”