Democrat presidential candidates Joe Biden and Kamala Harris both promised to repeal the Tax Cuts and Jobs Act while making campaign stops in New Hampshire this week, a move that would impose massive tax increases on New Hampshire households and businesses.
“When I’m president, if God Willing I am, we’re going to reverse those Trump tax cuts,” Biden said Monday in Manchester.
“On day one, we gonna repeal that tax bill,” Harris said on Wednesday in Nashua.
Their promise to repeal the tax cuts is a promise to raise taxes. Repeal of the tax cuts would hit New Hampshire hard. If Biden or Harris repeal the tax cuts:
- New Hampshire households would lose their tax cut — a 25.2 percent tax cut on average, according to data reported by H&R Block.
- New Hampshire residents would be forced to pay the highly regressive Obamacare individual mandate tax. In 2016, 24,350 New Hampshire residents paid the tax totaling $17,392,000. 76 percent of people that paid the individual mandate tax made less than $50,000 a year, and 33 percent made less than $25,000 a year.
- 91,000 New Hampshire households who claim the Child Tax Credit would see their credit slashed in half from $2,000 to $1,000.
- 476,000 New Hampshire households who claim the standard deduction would see it slashed in half. (The TCJA nearly doubled the standard deduction from $6,300 to $12,000 for an individual and from $12,600 to $24,000 for a family.)
From a nationwide perspective, if Biden and Harris repeal the Tax Cuts and Jobs Act, the following would happen:
- A family of four earning the median income of $73,000 would see a $2,000 tax increase.
- A single parent (with one child) making $41,000 would see a $1,300 tax increase.
- Millions of low and middle income households would be stuck paying the Obamacare individual mandate tax.
- Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
- Small employers will face a tax increase due to the repeal of the 20% deduction for small business income.
- The USA would have the highest corporate income tax rate in the developed world.
- Taxes would rise in every state and every congressional district.
- The Death Tax would ensnare more families and businesses.
- The AMT would snap back to hit millions of households.
- Millions of households would see their child tax credit cut in half.
- Millions of households would see their standard deduction cut in half, adding to their tax complexity as they are forced to itemize their deductions and deal with the shoebox full of receipts on top of the refrigerator.
As noted by the New York Times, thanks to the GOP tax cuts, “Most people got a tax cut.” The NYT also stated: “To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law to brand it as a broad middle-class tax increase.”
The Washington Post also stated: “Most Americans received a tax cut.”