If Democrat Senate candidates Raphael Warnock and Jon Ossoff win their runoff elections on January 5th 2021, they will rubber stamp the Biden-Harris agenda to raise taxes on families and businesses in Georgia and across the country.
Biden has promised to impose $4 trillion in new or higher taxes on the American people.
Under this plan, Georgia families and individuals will face a top tax rate of 55.09 percent. Georgia small businesses that operate as pass-through entities and pay taxes through the individual code would also face this new top rate.
The breakdown is below:
Biden top federal rate: 39.6 percent
Georgia top rate: 5.75 percent
Medicare payroll tax: 1.45 percent
Biden new payroll tax: 6.2 percent
Pease limitation: 1.188 percent
Additional Medicare tax: .9 percent
Biden would repeal the Republican Tax Cuts and Jobs Act (TCJA), which would raise the top marginal tax rate to 39.6 percent. A typical family of four with annual income of $73,000 will see a $2,000 tax hike.
Biden has also proposed implementing a new, 12.4 percent payroll tax on Americans earning above $400,000. This tax would be split evenly between employers and employees, resulting in a 6.2 percent tax hike on Americans. This new tax would not be indexed to inflation, meaning it would eventually hit all Americans.
Additionally, Biden would restore the Pease limitation, a provision that limits a filer’s itemized deduction by 3% of the amount that the filer’s AGI exceeds a certain threshold. The limitation can strip away up to 80% of the value of a taxpayer’s itemized deductions, an effective additional 1.188 percent tax when the top marginal rate is 39.6 percent. Biden would also cap itemized deductions at 28 percent.
While Ossoff and Warnock would support these tax increases on Georgians, Republican Senators Kelly Loeffler and David Perdue will hold firm against the Biden plan of higher taxes on families and businesses.