Joe Biden's $3.8 trillion tax hike
It may be a little difficult to remember but...there's a presidnetial race underway and presumptive Democratic nominee Joe Biden has put forward a wide-ranging tax proposal. The headline numbers: it would raises taxes up to $3.8 trillion over a decade. But what's under the hood? The Tax Foundation too a close look. Here's what they found:
Former Vice President Joe Biden’s tax plan has three major components: imposing a “donut hole” payroll tax on earnings over $400,000, repealing the TCJA’s income tax cuts for taxpayers with taxable income above $400,000, and increasing the corporate income tax rate to 28 percent. This plan would shrink the size of the economy by 1.51 percent due to higher marginal tax rates on labor and capital.
This plan would raise about $3.8 trillion revenue over the next decade on a conventional basis, and $3.2 trillion after accounting for the reduction in the size of the U.S. economy. The plan would lead to lower after-tax income for all income levels, but especially for taxpayers in the top 1 percent.
The last thing the U.S. economy needs are tax plans placing even greater strain on a system that is currently struggling:
Biden’s tax plan would reduce the economy’s size by 1.51 percent in the long run. The plan would shrink the capital stock by 3.23 percent and reduce the overall wage rate by 0.98 percent, leading to 585,000 fewer full-time equivalent jobs.
Raising taxes to destroy jobs and shrink the economy. That's a recipe for disaster.
You can read the entire Tax Foundation analysis here.