April 30, 2024
Biden Does not Understand Taxes
By Warren Beatty
Biden is again on a tax-raising rampage. He proposes to increase income taxes by nearly $5 trillion for corporations. Increasing the corporate income tax rate to 28% (from 21%) will be a great driver of negative effects on the U.S. economy, reducing long-run GDP by 0.9%, the capital stock by 1.7%, wages by 0.8%, and full-time jobs by 192,000. Additionally, Biden's new tax proposals include increasing the recently enacted corporate alternative minimum tax rate from 15% to 21% and denying business deductions for employee compensation above $1 million.
Biden proposes an increase of the corporate income tax that's a higher tax rate than in communist China, France, and the U.K., each at 25%. Add to that rate the average state corporate income tax of 4% and the average combined rate will be 32%, the second-highest corporate income tax rate (just below Colombia) in the developed world.
As the late, great Paul Harvey used to say, "Corporations don't pay taxes." Households bear the burden of corporate income tax increases in the form of higher prices and/or slower wage growth.
Biden repeatedly said he wouldn't raise taxes on anyone earning less than $400,000, but has now proposed to raise taxes on almost everyone. He says he's going to let Trump's Tax Cuts and Jobs Act (TCJA) expire, which will be a massive middle-class income tax hike because it was a massive middle-class tax cut. Wealthy people saw their taxes reduced, but the TJIA actually transferred a larger portion of the tax burden onto the wealthy.
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https://www.americanthinker.com/articles/2024/04/biden_does_not_understand_taxes.html
