Here’s what will happen if Biden and Harris repeal the Tax Cuts and Jobs Act
Kamala Harris wants a full repeal of the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump in 2017. Repeal of the tax cuts would result in a $2,000 annual tax increase for a median income family of four.
As reported by Bloomberg News:
Senator Kamala Harris said she’d seek to repeal all of President Donald Trump’s 2017 tax overhaul, including its breaks for wealthy earners, corporations and the middle class.
“Get rid of the whole thing,” the California Democrat and presidential contender said after a campaign event in Detroit.
Even Barack Obama has warned against raising taxes in an economic downturn. If Democrats repeal the tax cuts, as they have said countless times, Americans will face steep tax hikes just as the country starts to recover from the coronavirus:
- A family of four earning the median income of $73,000 would see a $2,000 tax increase each year.
- A single parent (with one child) making $41,000 would see a $1,300 tax increase each year.
- Every household who claims the child tax credit will see their child tax credit cut in half.
- Millions of low and middle-income households would be stuck paying the Obamacare individual mandate tax of $695 – $2,085. This tax was zeroed out as part of the Tax Cuts and Jobs Act. Biden has vowed to re-impose this tax.
- The USA would have the highest corporate income tax rate in the developed world, higher than China (25 percent), the United Kingdom (19 percent), Canada (26.8 percent), and Ireland (12.5 percent).
- Small employers will face tax increases due to the increase in marginal income tax rates and the repeal of the TCJA 20% deduction for small business income.
- The Opportunity Zone program would be abolished. Opportunity Zones were created as part of the TCJA are already helping economically distressed areas across the country.
- Taxes would rise in every state and every congressional district.
- The Death Tax would ensnare more families and businesses.
- Utility bills would go up in all 50 states as a direct result of the corporate income tax increase.
- The AMT would snap back to hit millions of households.
- 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.
Even left-leaning media outlets have acknowledged the fact that the Trump tax cuts have helped middle income households:
- New York Times: “Most people got a tax cut.”
- Washington Post: “Most Americans received a tax cut.”
- CNN’s Jake Tapper: “The facts are, most Americans got a tax cut.”
- H&R Block: “The vast majority of people did get a tax cut.”
- CNN’s Tapper also stated: “In fact, estimates from both sides of the political spectrum show that the majority of people in the United States of America did receive a tax cut.”
- FactCheck.org: “Most people got some kind of tax cut in 2018 as a result of the law.”
- FactCheck.org also stated: “The vast majority (82 percent) of middle-income earners — those with income between about $49,000 and $86,000 — received a tax cut that averaged about $1,050.
Americans for Tax Reform has compiled over 1,200 examples of how the Tax Cuts and Jobs Act has helped businesses and households in all 50 states.
On tax policy, Biden has a history of lying to the American people. He lied when he ran for Vice President in 2008 when he repeatedly said he would not support any form of any tax that imposed even “one single penny” of tax increase on anyone making less than $250,000. Biden shattered that promise upon taking office.
To stay up-to-date on Biden’s tax hikes, visit ATR.Org/HighTaxJoe