President Biden is reportedly planning the first major hike in federal taxes in almost 30 years to fund the economic program set to follow the recently approved $1.9 trillion pandemic stimulus package. The planned increases reportedly include: raising the corporate tax from 21 percent to 28 percent; increasing the income tax rate on people making more than $400,000; expanding the estate tax; paring back tax preferences on pass-through businesses such as limited-liability companies; and setting up a higher capital gains tax rate for individuals making at least $1 million. As Bloomberg notes, an independent analysis of the Biden campaign's tax plan conducted by the Tax Policy Center found that it would raise around $2.1 trillion over 10 years.[TheHill] Biden seems to be keeping more campaign pledges such as the no income tax increase on individuals making under $400,000 per year. He also seems to be targeting the trump tax “cuts” that primarily benefit the very wealthy and phase out completely for the middle class by 2025 which was a “day one” pledge. $2.1T will pay for a little over one of the three stimulus packages within the last year. Hopefully we will see some cuts in the more bloated areas soon coupled with elimination of many of the tax loopholes. Some are concerned about the corporate tax rate increase but looking at Amazon, Delta, Chevron, GM and hundreds of other corporations that already have a negative tax rate (due to write offs/deductions) does this rate really impact these companies? Too far? Not far enough?
And what happened after Bill Clinton's 1993 tax increase. Clinton came into office on a STRONG uptick in the economy which had recovered from a recession. Although there was strong revenue growth already he decided to raise tax rates. So what happened? 1990 1,032.0 4.1% <- Democrats tax increase agreed to by Bush for spending cuts the Dems never passed 1991 1,055.0 2.2% 1992 1,091.2 3.4% 1993 1,154.3 5.8% <- Clinton tax increase signed AUGUST 1993 however "Taxpayers who owed additional 1993 taxes due to the OBRA93 tax rate increases were given the option of deferring payment of two-thirds of the tax that was in excess of the tax that would have been owed at the 31 percent rate. Half of the deferral taxes were to be paid in 1995 and the remaining half in 1996 [2]. http://www.irs.gov/pub/irs-soi/93inintrts.pdf 1994 1,258.6 9.0% 1995 1,351.8 7.4% <- Even with the differed tax revenues now due revenue growth slow 1996 1,453.1 7.5% 1997 1,579.2 8.7% -> Gingrich/Kasich tax rate cuts 1998 1,721.7 9.0% 1999 1,827.5 6.1% 2000 2,025.2 10.8% 2001 1,991.1 -2% 2002 1,853.1 -7% 2003 1,782.3 -4% Bush tax rate cuts begin implimentation 2004 1,880.1 5% Bush tax rate cuts fully implimented 2005 2,153.6 15% 2006 2,406.9 12% 2007 2,568.0 7% <- Dems take back the Congress 2008 2,524.0 -2% 2009 2,105.0 -17% 2010 2,162.7 3% 2011 2,303.5 7% <- Republicans take back the house 2012 2,445.0 6% 2013 2,775.1 13% 2014 3,021.5 9% Obama Capital Gains tax increase and surcharge 2015 3,249.9 8% OMB Historical Tables Biden has been doing and is announcing more plans that are exactly the OPPOSITE of what needs to be done just as his failed recovery after the 2008/9 recession. I could not believe he was actually citing it today when he was announcing Gene Sperling, the failed economist of that recovery, being selected by Biden to head the recovery. Oh THAT'S what we need a repeat of the worst recovery in modern history by their own goalpost.
A democrat President raising tax's and that's news? It was already predicted last year over and over.. The next thing you will hear is CONFLICT someplace in the middle east.. One thing history has taught some of us is, Dems love them some tax money and War'n
The biggest ruse there is with the DNC, "Raise Min wage" and and increase subsidies allotments IE: child poverty allowance and then "Raise Tax's"! It's the age old DNC Ponzi scheme!!!!
Due to tax "equity", increased taxes will only apply to white people. It makes no difference if that statement makes any sense at all. These are liberals. Logic doesn't count. Only feelings do.
Why is $400,000 bad? You understand we have a progressive income tax system like most of the world, yes?
Just know that as you point to those with more, demanding they pay more, it won't be long until people are pointing at you. I already pay more than 50% of my hard earned dollar to the government. How much is enough?
Will not result in paying down a dime of our $30 trillion National Debt, we're gonna need a lot more to do any good. Close all the loopholes for the wealthy and corporations.
I make most of my money through capital gains and dividends. I believe both should be taxed as regular income but the right keeps demanding I keep my money. As to how much is enough, somewhere after we start paying down our debts, do something about our crumbling infrastructure and implement a national public option. I also hope we start seeing some cuts to some bloated government programs but I doubt that will ever happen. It is interesting that so many Americans pay more in taxes by percentage of their income than “socialist” nations but we receive so much less.
Believe me Biden isn't planning anything, not even what he's going to wear tomorrow. All these political statements are coming from Obama and Valerie Jarret.
So you admit we get a bad deal and support more of the same? BTW, No one can demand you keep more money. You can pay as much as you like.
No that is not the question the question is what policies should be adopted to keep the recovery going................can't deal with that our something?
You understand we already have one of the most progressive tax systems in the world, yes? You understand as I posted the facts, tax rate increases do not translate into revenue increases in fact just the opposite tends to occur. So what exactly is your tax policy goal, to raise the most revenue with the least impact on the economy or simply to take more of what the highest earners earn so they don't have it?
I dunno if thats where their coming from... but ya, Biden aint planning nothing. He just reads scripts and signs things.
Why? And be specific. They are entirely different forms of income. You dare say "paying down our debts" when you support this massive increase to our debt the Democrats are adding? When you support tax policies to lower tax revenues?
I agree we get a bad deal but what do you expect when we have two parties that are “let us show you how bad we can make government” and “we are the most naïve people available”? I know I could pay more, but why would I when my neighbor isn’t and just bought a new boat — I am going to get a boat instead.
Why what? Why do I believe they should be taxed as regular income? Because they are... I receive dividends from my companies so I pay less in taxes (if they were taxed the same I wouldn’t take a dividend). Cap gains are on a few properties we flip but make sure occupancy guidelines are met so we bypass the income tax issue — that and the market. I don’t support it. I didn’t support the last two either.
You make a strong argument for less government. Maybe spending cuts should be the focus; not tax increases. You deserve that boat!
$210 billion a year is Pelosi's fun money. They will never pay for the stimulus. They'll just allow inflation to make it go away.
I'm sure you have heard this TO MANY TIMES.. But if you feel so strongly about your over abundant income, then simply give it back to the IRS! I'm sure you'll be tickled pink how they spend it
My wifes S-corp with her being the only employee would see a tax raise. Thanks... I swear what is it with Progressives not understanding that Corporation is far more complex then the giants like Amazon.