President Joe Biden has talked about raising taxes almost from the minute he stepped into the White House. He said his goal was to lessen the burden on lower and middle-class families.
At the same time, he would target the wealthy — he’d demand richer citizens and corporations pay a lot more than they paid under the Donald Trump administration.
But his latest proposition might be a step too far.
American businesses have been concerned that Biden would make the corporate environment extremely difficult, and that could result in losing more jobs overseas.
While Trump dropped the corporate tax rate from 35 percent to 21 percent with his 2018 tax cut bill, Biden’s American Jobs Plan aims to reverse that trend.
However, beyond jacking the corporate tax again, Biden is also going after individual wealthy citizens.
And some economic experts and politicians are saying this could also cause problems; even certain Democrats don’t like the idea of doubling this particular tax rate.
Via The Daily Caller:
President Joe Biden’s administration is weighing nearly doubling the capital gains tax on wealthy Americans to 43.4%, Bloomberg News reported Thursday.
The plan would raise the gains tax to 39.6% for Americans making more than $1 million a year, and that would add upon an existing 3.8% tax on that bracket that supports Obamacare, according to Bloomberg.
On top of that, Biden wants to bring the corporate tax rate back up to 28 percent.
The combination of all these tax increases makes it feel like a more difficult business environment for American-based corporations, according to many. And double-taxing capital gains is a big deal, too.
But again, even some Democrats aren’t on board.
This includes Sen. Joe Manchin (D-WV), who says Biden’s bill simply shouldn’t pass as it stands. He said he supports a corporate tax increase to 25 percent, but 28 is too high.
As the bill exists today, it needs to be changed.
It’s more than just me. There’s six or seven other Democrats who feel very strongly about this.
We have to be competitive, and we’re not going to throw caution to the wind.
That appears to be the biggest hurdle Democrats and Biden face with these tax increases: it could make the U.S. less competitive in the global market.
Republicans push back against these proposed tax increases specifically for this reason.
And Biden’s infrastructure plan has been called a “Trojan Horse” by Senate Minority Leader Mitch McConnell. That’s because it includes “more borrowed money and massive tax increases.”
When you dramatically tax the wealthy and businesses, it sounds like a good idea on the surface — the majority of the country won’t feel the pain, after all.
But in the long run, Republicans argue that everyone will feel the pain. Businesses will be in a much tougher environment, and we can start to lose our edge in the global atmosphere.
These are things Trump was concerned about, but it seems Biden is more interested in simply adding more taxes to fix any problem.
- The Biden administration plans to nearly double the capital gains tax on wealthy Americans: up to 43.4 percent.
- Even Democrats like Joe Manchin say the bill “needs to be changed.”
- Republicans and economists argue that drastically increasing taxes on wealthy individuals and corporations will have long-lasting negative effects.
Source: The Daily Caller