"Joe Biden" by Gage Skidmore is licensed under CC BY-SA 2.0. https://flic.kr/p/2gY4zT7

Norquist: “Biden’s tax hikes will raise the cost of goods and services for everyone.”

The White House today touted small business tax increases which will be included in President Biden’s budget to be formally unveiled on Thursday March 9.

Americans for Tax Reform president Grover Norquist said:

“Biden’s tax increases will hit small and medium-sized businesses hard. The Biden tax hikes will raise the cost of goods and services for everyone, and make American workers and businesses less competitive internationally and vs. China.”

Biden wants to raise Medicare taxes by 31% — from 3.8% to 5.0% — while aggressively widening the net of taxable income. As noted by the Wall Street Journal, “these taxes don’t have an income cap and effectively create a new top tax bracket.”

Biden on Thursday will also likely propose a hike to the top marginal income tax rate to 39.6% from the current 37% rate.

As noted by WSJ, this would saddle the U.S. with the highest marginal income tax rate in decades:

If Mr. Biden again proposes raising the top marginal income tax to 39.6% from 37%, he would be seeking a combined top federal tax rate of 44.6%, higher than at any point since the mid-1980s. If that became law, the combined marginal tax rate on top earners would exceed 50% in many states.  

Stay tuned to ATR.org for updates on the Biden tax increases as they are released later this week.