Biden releases job-killing tax hike proposals, economists warn about consequences
The Biden administration recently released the details of the American Families Plan that will raise taxes and add trillions in new spending.
President Joe Biden and the Democrats are set to embrace massive tax hikes on families and job creators while spending trillions of dollars on paid family leave and other liberal wish list items.
“The President’s proposal would change the game—by making sure the wealthiest Americans play by the same set of rules as all other Americans,” the White House explained.
“Alongside the American Families Plan, the President will be proposing a set of measures to make sure that the wealthiest Americans pay their share in taxes,” the White House said, while ensuring that no one making $400,000 per year or less will see their taxes go up.”
It reminds political observers of how the Obama-Biden White House repeatedly and falsely claimed that insurance premiums would decrease under Obamacare and people would be able to keep their doctors and health insurance plans.
Ryan Ellis, a conservative commentator and activist, listed a number of the new tax hikes in a Twitter thread.
“The top personal income tax rate is raised from 37 percent to 39.6 percent,” Ellis said. “This affects all taxable income north of about $550,000 for singles and about $650,000 for married couples.”
Ellis also identified a nearly doubling of the long-term capital gains tax rate from 23.4 percent to 43.4 percent for some taxpayers.
Biden’s plan “creates a second death tax on top of the existing one.”
“Assets held at death would be taxed on their built-in capital gains at 43.4 percent,” Ellis said. “There would be a $1 million-ish exemption, but this new death tax kicks in much earlier.”
Ahead of the release of the concrete details, the Foundation for Economic Education noted on Monday that economics have concluded that the capital gains tax increase could wreck the economy.
“[T]op free-market economists interviewed exclusively by FEE warn that the entire economy, not just the wealthy, would suffer from such a significant capital gains tax increase,” Brad Polumbo wrote.
Rumors of the tax hike already contributed to a decrease in stock market values.
“Stocks sold off sharply for a bit following a report that the Biden White House would support a significant hike in the capital gains tax rate to 39.6 percent,” Politico reported on April 23.
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