Who Will Bear the Tax Burden, Mr. President?
This is when you wish Joe Biden had a sharper economic mind.
by Justin Begley
September 24, 2021, 10:07 PM
As congressional Democrats push a $3.5 trillion social spending package, everyone is wondering: “How are we going to pay for that?” To President Joe Biden, the answer is simple: raise taxes.
Included in Biden’s proposed tax plans — erroneously named the American Families Plan — are hikes in personal income tax and capital gains tax rates. The plan would raise the top marginal income tax rate from 37 percent to 39.6 percent and reclassify long-term capital gains and qualified dividends as ordinary income for those with taxable income above $1 million, resulting in a top marginal tax rate of 43.4 percent, according to the Tax Foundation.
Despite the frustration (or excitement) that Americans have towards Biden’s income and wealth tax proposals in the midst of an economic recovery, Americans should be paying closer attention to his other proposals, the American Jobs Plan and the Made in America Tax Plan.
Should these tax plans pass when sent to the House and Senate, corporations would be taxed at a rate of 28 percent rather than the current rate of 21 percent. Further, large corporations that report high profits, but a lower level of taxable income would be subject to a 15 percent minimum tax on book income.
The Biden administration says that the minimum book tax will close the “loophole” that corporations use to pay lower or zero federal income taxes caused by “significant gaps in current tax law.”
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https://spectator.org/who-will-bear-the-tax-burden-mr-president/
