President Biden’s top economic advisor, White House National Economic Council Director Lael Brainard, vowed on Friday that Democrats would raise taxes “overall” in 2025 if Biden is reelected.
“We should use the 2025 tax debate as an opportunity to raise revenue overall,” Brainard stated in her prepared remarks on Friday.
Brainard’s announcement of Biden’s intent to raise taxes overall was no accident. Brainard’s prepared remarks come on the heels of Biden’s own repeated statements last month to let the 2017 Trump tax cuts fully expire, a clear violation of his pledge to not raise taxes on anyone earning less than $400,000.
“By the way that tax cut of his expires in the next year. Well let me tell you something: It’s going to stay expired and dead forever if I’m re-elected.” – President Biden on April, 24th
This means all income levels would end up paying higher taxes under Biden’s watch, a blatant violation of the Biden pledge to ensure that every American making less than $400,000 a year does not see a single penny of tax increase.
In contrast to the tax-hiking Biden, former President Donald Trump has made clear he will make TCJA permanent and then cut taxes more.
Brainard Vows Corporate Rate Hike on Businesses
Brainard went on to vow that in 2025 Biden will raise taxes on businesses by undoing the President Trump’s corporate tax rate cut from the 2017 Republican tax cuts.
“The President’s Budget would scale back the TCJA’s corporate rate cut by bringing it to 28%—only halfway back to the previous 35% rate,” Brainard stated.
Biden’s plan to hike the corporate rate to 28%, up from the Trump rate of 21%, would have disastrous consequences for the economy including killing jobs, lowering wages for workers, and slowing economic growth.
A recent analysis from the Tax Foundation on Biden’s proposed budget found that Biden’s 28% corporate rate was the largest driver of negative economic effects in the entire Biden budget.
Here it is straight from Tax Foundation’s analysis:
“Raising the corporate income tax rate to 28 percent is the largest driver of the negative effects, reducing long-run GDP by 0.9 percent, the capital stock by 1.7 percent, wages by 0.8 percent, and full-time equivalent jobs by 192,000.”
Economic research overwhelmingly confirms that workers bear the burden of corporate tax hikes, with most studies concluding that 70% of the economic cost of the corporate tax falls on labor.
Biden is excited to raise taxes on the American people. Overall, his 2025 budget calls for $5 trillion in tax hikes over a decade. Biden’s 28% corporate tax rate would be higher than communist China.