Joe Biden has broken numerous campaign promises since assuming office in January. From fracking to the filibuster, it’s now a given that the cognitively-declining president lied straight to the American people in an effort to quell their concerns about his radical Left policies. So it comes as no surprise that yet another promise is set to be broken, this one having the largest affect on the average American worker or small business owner: taxes. While repeatedly vowing to keep taxes low for working class Americans, it seems that Sleepy Joe told another lie. How else will he pay for his trillion-dollar spending initiatives if not with taxpayer money?
A recent non-partisan analysis from the Tax Policy Center explored the effect Joe Biden’s policies will have on the average American household. It found that over 60% of families in the United States will see an increase in their tax rates in order to fund the current administration’s spending measures.
“For those looking to see if Biden kept his promise to not raise taxes for those making $400,000 or less, the answer is: no, not entirely,” an economist at the Tax Policy Center said.
“In addition to increases in the corporate tax rate, most households will pay more in 2022 — including 3/4 of middle-class households. Though just a slight increase, middle-class Americans can expect to pay about $300 more in taxes in the upcoming year. However, most of the revenue raised for Biden’s policies will stem from higher corporate taxes.”
Biden promised American families making less than $400,000 that a tax increase is off the table, but the analysis shows that is just a bold-faced lie. A majority of American households will see at least some tax increase as a result of Joe’s spending initiatives. Roughly three-quarters of households earning between $75,000 and $100,000 would see their burden rise about $440, while 69% of those making between $100,000 and $200,000 would see an increase of $830 on average.
The tax bill increases exponentially with income, according to the non-partisan analysis. A majority of households (83.7%) in the $200,000-$500,000 bracket will likely see an approximate increase of $2,040 in 2022. The highest burden falls on those making above $500,000, who many tax experts have warned against targeting as they already add more to the IRS coffer than anyone else. Nearly 100% of those Americans who make between $500,000 and $1 million per year will see an average increase of $8,810 in their taxes. For those making over $1 million, the increase is astronomical, averaging over $260,000 added to your tax bill.
Biden has vowed to make it more difficult to do business in the United States by promising a corporate hike from 21% to 28% and the capital gains rate increase 21% to 39.6%. Targeting wealthy Americans, the president proposed a top income bracket increase to 37%.
While the Biden administration has not explicitly called for a tax increase for those making under $400,000, the analysis found that middle and low-income Americans will be saddled with a heavier burden as an indirect consequence of lower compensation. As businesses are forced to pay more, income rates decrease and unemployment skyrockets. Additionally, with Biden’s proposed increase in the capital gains tax rate, American households will see less revenue from their investments.
However, some Americans might get a reprieve as a result of Trump-era tax credits, and any additional credits in Biden’s plan. The Former President’s child tax credit will remain in Biden’s budget, which will lessen the tax burden on some middle and low-income Americans.
Biden has referred to his massive spending increase as a “once-in-generation investment” as he calls for taxpayers to foot the bill for his trillion-dollar proposals. His administration hopes to radically ramp up spending on education, child care, and paid family leave.
Additionally, Biden is currently in negotiations on an “infrastructure” bill with Senate Republicans that actually spends little on infrastructure and more on the Democrats Far-Left wish list. Republicans have successfully brought the price tag down on the bill, but no concrete agreement has yet to be secured.
Author: Nolan Sheridan