Opinion / Politics / Taxes

The Coming Biden/Harris $4 Trillion Tax Hike Plan?

Biden Harris China

Photo by Adam Schultz / Biden for President Creative Commons Licesnse

“Normally you don’t raise taxes in a recession, which is why we haven’t” former President Obama told Chuck Todd in an August 2009 interview as the economy slugged along towards recovery. Yet President Obama’s former Vice President is now promising to do just that, albeit without much attention from the media. According to five independent economic analyses, (the Urban-Brookings Tax Policy Center  (TPC),  the Tax Foundation , the Committee for a Responsible Federal Budget  (CRFB), the  American Enterprise Institute  (AEI) and the  American Enterprise Institute) the former Vice President Biden is proposing between $3-5 trillion in new taxes to fund his party’s wish list of spending proposals. The Biden tax hike plan, far more extreme than former Democratic Presidential nominee Hillary Clinton’s proposal put forth in 2016, has largely fallen under the radar in a year where the virus, unrest in cities, and the media’s invented scandals of the day have dominated cable news. At AMAC Action we’ve studied the details of the Democrats’ tax plan and evaluated the veracity of their claims to not raise taxes on most Americans. Below we lay out the major differences in the Trump vs. Biden proposals and let you decide for yourself which plan is more likely to lead to prosperity for America.

Individual Taxes

Current Law: In December of 2017 President Trump signed into law an across the board tax cut, lowering taxes for most Americans. Like most of the Trump tax cuts, these changes are set to expire in December of 2025. The top individual tax rate is currently 37%.

Joe Biden: “Nobody making under 400,000 bucks would have their taxes raised, period, bingo.” Joe Biden’s claim that no one making under $400,000 would see their taxes go up is false according to at least 5 independent economic models, but is being reported as true, or left alone altogether by the media. While it is true that his plan calls for keeping rates steady for the middle class and enacting new tax credits that may benefit many in the middle class, Biden’s proposal to raise the corporate tax and taxes on businesses would make middle-class workers across the board poorer. An August 2020 Tax Foundation analysis states: “while Biden’s tax plan would make the tax code more progressive, it would reduce after-tax incomes for filers across the income spectrum by reducing the incentive to work and invest in the United States.” The analysis shows that if enacted the Biden/Harris tax hikes would eliminate nearly 600,000 jobs. Even the Washington Post, whose fact-checkers are known for contorting themselves to help support Democratic claims, decided to leave Biden’s claim unrated. The Biden/Harris plan calls for raising the top individual rate from 37% to 39.6%.

President Trump: President Trump has called for a new “10% middle-class tax cut” while promising to extend all of the positive changes from the Tax Cuts and Jobs Act, keeping taxes low or reducing them further for most taxpayers.

Capital Gains Taxes

Current Law: President Trump’s Tax plan set the long term capital gains rate at 20% while retaining the Obama era 3.8% net investment income tax on high earners. Over 50 million Americans have some type of savings in a retirement plan or the market.

Joe Biden: Raise the top capital gains rate from 20% to 39.6% on high earners (tax capital gains as ordinary income).

President Trump: Index the current capital gains rate to inflation and further reduce the capital gains rate for all taxpayers.

The Death Tax

Current Law: President Trump’s Tax Plan nearly eliminated the estate tax by raising the current exemption to protect most family-owned businesses and farms. This less-burdensome death tax is set to expire in December 2025 if Congress does not vote to extend the current law.

Joe Biden: Hike the death tax by undoing the positive changes the President made in the Tax Cuts and Jobs Act. Eliminate “step-up in basis” on inherited assets. Force capital gains taxes to be paid at death on unrealized gains from inherited assets.

President Trump: Extend the current exemption and permanently repeal the death tax. The President believes that no one should have to visit the taxman and the grim reaper on the same day.

Deductions and Credits

Current Law: President Trump doubled the standard deduction to over $24,000 per couple simplifying taxes for nearly 30 million taxpayers, enacted a new 20% small business deduction, and enacted a more generous child tax credit of $2000 per child and $500 per dependent.

Joe Biden: Phase out a number of credits and deductions for individuals starting in the 28% bracket. Enact a number of new tax credits promoting green energy. Eliminate the 20% small business deduction for many privately owned businesses.

President Trump: Permanently extend the expanded standard deduction, child tax credit, and 20% small business deduction to help families and small businesses.

In comparing the proposals between President Trump and Joe Biden there is a consistent theme: Joe Biden is likely to hike your taxes while President Trump will keep them low or reduce them even further. As the Presidential campaigns head into the final stretch, look for Biden to continue to claim his plan won’t affect anyone but the wealthy. Armed with the facts you can now fact check Biden/Harris for yourself. President Trump understands, and several independent economic studies confirm, that you simply cannot raise taxes on businesses, as Joe Biden hopes to do, without affecting workers and the economy as a whole. Even President Obama publicly rejected the idea of raising taxes during a recession but Biden/Harris will have no choice if they are to fund a transformational Democratic agenda on climate, education, health care, and social justice. Our AMAC Action team will continue to cut through the rhetoric, keeping you informed on the reality of what Democrats are proposing. Please continue to stay engaged through the home stretch of this election season as we work to keep you informed and stand ready to protect your pocketbook, your small business, and the economy.

Written by Palmer Schoening

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Paul W
10 days ago

There isn’t one single reason, at all, to elect ANY demoncrat this November…if the future of a great America is what you’re seeking. Absolutely NONE. Their platform is devoid of ANYTHING that’s positive for this country and We the People.

Shoe
10 days ago

Liberals always say they want to “tax the rich” and “ corporations”. They never tax their limousine liberal buddies and corporate taxes affect the 401K and IRAs of the middle class. This will be a tax aimed at destroying the middle class (the elite liberals hate the middle class as being “unmanageable”.

Myrna
10 days ago

Brit Hume reported recently that he thinks President Trump is losing the support of seniors. Not in my house! He might think AARP is representative of senior votes. I hope Amac will inform him that there are plenty of seniors who still care the most about what the next administration will do–not what they say.

Steven Meisels
10 days ago

Sad to say this info is not out there for all to see. I can see where seniors will be very vulnerable with the Biden tax plan.h

Rick J.
10 days ago

A tax increase will be just the beginning. These two clowns will make a big mess out of the country,
real quick. All the good president Trump has accomplished, will be wiped out in a matter of months.

kathi
10 days ago

I find it remarkable that polls show Biden ahead of Trump with seniors! Democrats have always enriched their liberal elite friends while attempting to destroy the middle class. Biden is out with a narrative that Trump will end Social Security! Seniors , don’t let Hiden Biden fool you. He’s done it before and will do it again. Read about him.

James J Stone
10 days ago

the problem will never be fixed until government stops spending needlesly. if we ran our homes like the government we would be in bankruptcy in an hour

GKP
10 days ago

Biden and his willie brown squeeze are both complete losers and a tax hike now would really hurt seniors with a restricted income//Wake up America and dump these liberal loonies and vote for the TRUMPSTER/ Everybody will gain if he serves another 4 years=Whites/Blacks/Yellows/Tans/PolkaDots/and all Dogs will be better off///

Don Tucker
10 days ago

Democrats always drone on about everyone should pay their fair share. This is why I support a flat-tax instead of a progressive tax system. Do away with are deductions and loopholes, except for the standard deduction. Allow businesses and individuals to make decisions based on what is good sense and not on the tax code. Eliminate the IRS annual tax filing/return and tax accountants. The federal government should be able to get by with a 15% flat tax enacted by constitutional amendment. Then, everyone would have skin in the game and be paying their fair share.

David B.
10 days ago

The “Harris” Administration(Biden just a figurehead) resents, if not hates all traditional Americans, and will make it painful to live in this great Country if by chance they get elected. Civil war to follow.

Stephen Russell
10 days ago

Only coming if they win election.

Brenda Blunt
10 days ago

Biden and Harris ARE idiots. They have NO concept of what the regular legal American citizen goes through or endures.

Jack
10 days ago

Business and corporations do not pay these tax increases out of their profit. They increase the price of their goods and services so the taxes are paid by the consumer. If it didn’t work that way there would be no businesses. Just more of the same old BS for ignorant people to vote for thinking someone else is going to pay the bills and they get a free ride. Democrat propaganda. Smoke and mirrors.

Gordon
10 days ago

Have you ever heard about trickle down effects. We will be paying for their lies forever. Enough said

Walter
10 days ago

Make no mistake. The $4T tax increase is a low figure. And if you think the middle class will not see a tax increase your mistaken. That amount of money won’t even begin to address the Dems Green New Deal. The middle class will all but disappear. Sounds gloomy, huh! I can’t even imagine how Bloomberg is donating $100M in Florida -you think he is buying votes and that he will not get anything in return-think again. Shouldn’t there be an equal limit that can be donated to each applicable politician. Speaking of mail in votes, they can’t even get… Read more »

Art A
10 days ago

The MSN hides all of the negatives. TAX THE RICH AND BUSINESSES. Sooner or later this trickles down to Joe Bagodonuts. This Hiden Biden group needs a couple of boxcars of cash to pay for their promises. Joe B has no idea that sooner or later the stolen cash(some from him),after expenses,is causing him to pay more for goods. What a way to promise all of these goodies. YOU GO HO AND JO!
MAGA/KAF/KAG 2020

‘Nonymous
10 days ago

The coming Biden-Harris tax hike? Was there an election that I missed?

John A. Fallon
10 days ago

Tax rates are meaningless, the problem has always been the excessive tax writeoffs the wealthy take advantage of, paying taxes on ten percent or LESS of thier true income while “hiden” money in off shore accounts and other tax dodges, a straight ten percent tax for individuals, businesses, corporations would level the playing field and put more money in the pockets of working people AND greatly increase tax revenues for government, win-win for everybody, I see no legitimate reason why ANYBODY rich or poor could not be happy taking home NINETY PERCENT OF THIER INCOME, plus the added bonus of… Read more »

Phil Hammersley
10 days ago

To paraphrase the late Senator Everett Dirksen: “A trillion here, a trillion there. Pretty soon we’re talking about real money.” Creepy Joe cannot finance all of his Marxist proposals and exclude anyone. ALL taxpayers will pay more-much more. Did you hear Kamala talking about the “Harris Administration?” Does she know something we don’t?

Ed J
10 days ago

Welcome to the latest and greatest Demshevik “Grand Theft Tax Plan!” As some have already noted, ALL taxes eventually come from people. It is a simple economic fact that businesses and corporations do not pay taxes but will simply pass through whatever taxes they are assessed by raising the cost of the products and services “We The People” consume.

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