Author Topic: This week in Bidenomics: Tax hikes hit the radar  (Read 276 times)

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Online catfish1957

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This week in Bidenomics: Tax hikes hit the radar
« on: March 19, 2021, 06:17:53 pm »


https://finance.yahoo.com/news/this-week-in-bidenomics-tax-hikes-hit-the-radar-180231864.html

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Joe Biden wasn’t shy about proposing tax hikes as a presidential candidate in 2020. He told voters and campaign contributors he planned to undo some of the 2017 Trump tax cuts, even though “a lot of you may not like that.” His website detailed various taxes he would raise to pay for new programs.

Washington forgot about that while President Biden and his fellow Democrats were rolling out the $1.9 trillion American Relief Plan. But with that out of the way, Biden’s proposed tax hikes are getting attention again, and they’ll be a key focus of investors for the next several months.

Biden told ABC’s George Stephanopoulos on March 16 that anybody making more than $400,000 will see a “small to significant tax increase.” The White House later clarified that: the income threshold for tax hikes is $400,000 per household, not per individual. So if two spouses each earn $400,000, for household income of $800,000, their taxes are going up. If they each earn $200,000, for a household income of $400,000, they’d be safe from Biden’s tax hikes, in theory.

None of this is new, but we’re moving from what Biden said as a candidate to what he might actually do as president. And that’s likely to be a big difference. Congress is beginning to draft infrastructure and green-energy legislation, which will include tax hikes to pay for some of the new spending. Here are the major tax hikes on the table, with some handicapping on whether Democrats with very narrow margins in both houses of Congress could actually vote them in.

Raising the top individual income tax rate. The Trump tax cuts of 2017 dropped the top rate from 39.6% to 37%. Biden wants to put it back to 39.6%, which seems plausible. The top marginal rate kicks in at incomes of around $518,000, and wealthy Americans didn’t really need the tax cut in the first place. They’ve benefited the most from soaring stock and real-estate values, and there’s solid support for raising taxes on “the rich.”


Raising capital-gains taxes for those earning more than $1 million. Biden would tax income from capital gains at the same rate as labor income for high earners, which would essentially boost this tax from 23.8% to 37%, or 39.6% if Biden raises the top rate. There could be political support for this, too, with one caveat: Senate Majority Leader Chuck Schumer of New York is a stealthy friend of Big Finance, a dominant industry in his hometown and his top source of campaign funding. If higher capital-gains rates would harm Wall Street, Schumer could block this move.

Higher estate taxes. Biden would lower the taxable threshold from $7 million to $3.5 million. Doable.

A higher business tax. Trump cut the corporate rate from 35% to 21%. Biden wants to raise it to 28%. Republicans will fulminate, but Congress could probably pass a compromise of 24% or 26%. Roaring stock prices of the last year make it hard to argue against tapping businesses for more of a contribution toward funding infrastructure that would benefit them anyway. A higher tax on corporate income could also be offset by new tax breaks for investments in domestic manufacturing or green energy.

A minimum business tax of 15%. This would apply to large companies that report positive net income but use various tax breaks to lower their taxable income, in some cases avoiding taxes altogether. It’s a populist idea, but not necessarily a good one, since it would basically block companies from using legal tax incentives already on the books. Better to repeal those incentives than to lard up the tax code with complex provisions that cancel each other out.

A wealth tax. This isn’t Biden’s idea. Senators Elizabeth Warren, Bernie Sanders and others want an annual “ultra-millionaire tax" on wealth of more than $50 million, so there could be some pressure to put this in Democratic legislation. But a wealth tax would be hard to enforce and it might be unconstitutional. And some Democrats oppose it, which means it has little to no chance of becoming law.

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Some ugly details of what awaits the public from this deep dive into socialism.  Sad fact is that Pedo Joe was up front and truthful that he intended to significantly raise taxes to fund his idiotic agenda. We have debated to death the fact whether this election was stolen or not.  But in any case, this is the sad reality of what irresponsible fiscal management of a nation's economy will wrought. 

In our past, the electorate responded negatively to this type of shenanigans.  But now in 2021, so much of the country now resides in the "slug entitlement class" so that this shit will start and continue into perpetuity. I am sorry...  There is no pretty end to this story
I display the Confederate Battle Flag in honor of my great great great grandfathers who spilled blood at Wilson's Creek and Shiloh.  5 others served in the WBTS with honor too.

Offline IsailedawayfromFR

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Re: This week in Bidenomics: Tax hikes hit the radar
« Reply #1 on: March 19, 2021, 11:50:36 pm »
Once the new tax kitty gets opened, watch for increases in capital gains taxes and business taxes.

And for sure big gasoline taxes will be included. Likely graduating up to an extra fifty cents per gallon.

No real justification for any of these other than some vague reference to 'improving infrastructure'.

This is all about gaining more power over people and providing targeted exemptions for the well-heeled.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington