Due to the Coronavirus pandemic, the Trump administration delayed Tax Day for three months – moving the deadline to file taxes from April 15 to July 15.
Now that it is Tax Day, it is worth noting that a President Joe Biden will raise taxes across the board on American families and businesses.
In total, Biden has called for at least $4 trillion in new or higher taxes including income tax increases, business tax increases, and capital gains tax increases.
Biden has repeatedly called for repealing the Tax Cuts and Jobs Act (TCJA), which will increase taxes on Americans at every income level.
While the Biden and others on the left falsely claim that the Trump tax cuts only benefited “the rich,” the TCJA led to strong tax reduction for American families.
By repealing the TCJA, Biden will increase taxes on American families earning the median annual income of $73,000 by over $2,000. A single parent with one child making $41,000 would see a $1,300 tax increase each year.
The twenty-two million American families that take the child tax credit will see it cut in half from $2,000 to $1,000. 4.5 million households that have seen relief from the Alternative Minimum Tax will once again face this onerous burden.
Biden also says he will bring back the Obamacare individual mandate tax penalty, which was zeroed out in the TCJA.
Before it was repealed, the individual mandate was one of the most regressive taxes in the code and forced individuals to purchase government approved health insurance or pay a tax totaling almost $700 for an individual and $2,000 for a family. In 2017, the Obamacare individual mandate tax hit 4,654,990 households and 75 percent of those paying the mandate had annual income of less than $50,000.
Biden also wants to increase taxes on businesses – his plan calls for raising the corporate rate back up to 28 percent or 35 percent – which would make the U.S. rate higher than China.
He also proposes several new taxes on businesses including a 15 percent minimum tax and repealing the 20 percent “small business” deduction enacted by the TCJA.
Increasing taxes on small and large businesses will harm American workers and make the U.S. a less competitive place to do business.
Biden also proposes doubling the capital gains tax to over 40 percent, a tax increase that would further harm economic growth, reduce investment, and threaten the creation of new jobs and wage growth.
As the pandemic runs its course, Biden’s tax hikes will threaten our economy’s ability to recover from the nationwide lockdown.
Coronavirus took a sledgehammer to one of the strongest economies in American history. The February 2020 jobs report recorded 19 months of consecutive annual average wage growth of 3 percent or more. The unemployment rate was 3.5 percent – a 50-year low, and labor force participation rate was 63.4 percent, a 7 year high.
Prior to the pandemic, the tax cuts and other economic policies had led to strong economic growth and wage growth. This economic growth was not limited to any one demographic – unemployment for African-Americans, Asians, Hispanics, and other key groups was at or near record lows.
While the pandemic cut these economic gains short, Job Biden is proposing to increase taxes on American businesses and families at a time that the economy is struggling.
Moving forward, we need policies that will help businesses and workers get back on their feet, not stifling tax increases that will inhibit growth and keep wages down.