Back to Low Growth. The impact of Joe Biden’s tax plan would be less income across the spectrum and a sluggish economy.

City Journal ^ | August 25, 2020 | Noah Williams

[karpov]

As the U.S. struggles to emerge from the Covid-19-induced recession, Joe Biden is running for president on a pledge to return the country to economic policies responsible for the slowest economic recovery since World War II. Biden’s plans include “reversing some of Trump’s tax cuts for corporations and imposing common-sense tax reforms that finally make sure the wealthiest Americans pay their fair share.” This means a big increase in effective tax rates on capital and on individuals with incomes above $400,000, as well as partially reversing the corporate tax cut that was a centerpiece of the 2017 Tax Cuts and Jobs Act (TCJA).

But Biden’s tax increases go far beyond simply undoing some of the TCJA, the net result of which was a $1.5 trillion tax cut. Biden would hike taxes by roughly $4 trillion, divided about equally between individuals and firms. This move would likely produce a reversal of outcomes: while the TCJA has added to GDP growth by 0.5 percentage points to 1 percentage point since 2018, the Biden tax plan would probably reduce growth by at least that much.

In fact, the effects of Biden’s proposed tax increases may be even larger—and affect a much broader share of the population—than previous evaluations suggest, owing to their “tax incidence” consequences. Tax incidence refers to who bears the burden of a tax, which may be different from whom the tax is imposed on. For example, taxes levied on producers can be passed on to consumers through higher prices.

The Biden plan’s significant increase in taxes on high incomes would also fall on businesses, leading to lower wages for workers, less investment, and lower growth.

[Mouton]

Don’t overlook another of his “ideas” i.e. to get rid of the 401 plans. IOW, getting rid of means merging them into social security. If any of these clowns get anywhere near the whitehouse, IMMEDIATELY, sell off all your 401 assets, even if paying a penalty and put the money into something solid to ride out the total collapse of the stock market.

[spokeshave]

Convert the IRA to a Roth

[Mouton]

Roth is an IRA! They will convert them all to the SS fraud. That is the plan. YOU cannot be trusted to plan your retirement albeit the SS was NEVER a retirement plan, just a safety net.