Posted on 03/17/2021 10:58:29 AM PDT by RC one
President Joe Biden said in an interview broadcast Wednesday that he plans to raise taxes on Americans making more than $400,000 a year as his post-stimulus legislative plans come into focus.
"Anybody making more than $400,000 will see a small to a significant tax increase," he told ABC News. "If you make less than $400,000, you won't see one single penny in additional federal tax."
Speaking with NBC News, two administration officials earlier confirmed that Biden and his top aides are discussing the framework to increase taxes on Americans making more than $400,000 and on large corporations.
The officials stressed that the full scope of the package has not yet been finalized. Tax increases could be passed to help finance future Biden initiatives, such as a major infrastructure plan.
During the campaign, Biden pledged to at least partially roll back elements of former President Donald Trump's tax cuts. A White House official told NBC News that Biden's campaign proposals serve as a starting point for such a package.
They include:
-Increasing corporate tax rate to 28 percent (The Trump tax cuts slashed it from 35 percent to 21 percent).
-Restoring the top individual income tax rate to 39.6 percent. (Trump's tax plan cut this rate to 37 percent.)
-Taxing investment income for millionaires at the top income tax rate.
-Imposing a minimum 15 percent tax on "book income" for large companies like Amazon that currently pay little or no taxes.
-A mix of tax penalties and new minimum taxes on foreign earnings of U.S. companies, including those that offshore American jobs.
-Tax credits for caregiving and first-time homebuyers.
"If you notice the criticism of the Covid relief package from my Republican friends, is they say it spends too much money and it gives too many tax breaks," Biden told ABC News. "All these tax breaks go to the bottom 60 percent of the population. And guess what? They need it. The $1,400 check, (the) Child Care Tax Credit. They don't like it because in fact, their idea of a tax cut is to give the Trump tax cut, where 83 percent went to the top 1 percent of people in America."
Yet, with a 50-50 split in the Senate and a slim Democratic majority in the House, passage of a tax increase could be a struggle. Like the stimulus bill, it is likely to be advanced through the budget reconciliation process that requires just a 51-vote majority in the Senate — the same process utilized by Republicans to pass Trump's tax agenda and recently by Democrats to pass Biden's Covid-19 stimulus package.
Democrats are largely supportive of raising taxes. Sen. Ron Wyden, D-Ore., chairman of the Finance Committee, plans to unveil two tax hike proposals next week. One would overhaul multinational corporate taxes and the other would treat capitol gains like income, a tax structure that currently benefits the wealthy.
"Rebuilding our economy so it works for all Americans, not just mega-corporations and billionaires, starts with fixing our broken tax code and requiring they pay their fair share," Wyden said in a statement.
The tax hikes are expected to help pay for a large infrastructure bill that Democrats are beginning to formulate.
Still, a tax increase is certain to face fierce opposition from Republican lawmakers who argue, in part, any increase in rates could cause businesses to move overseas and could hurt the economy in the long run.
"I think the Trojan horse will be called infrastructure but inside the Trojan horse will be all the tax increases," Senate Minority Leader Mitch McConnell, R-Ky., said. "They want to raise taxes across the board."
By one estimate, the president's tax proposals as outlined could raise more than $2 trillion in revenue over the next decade.
"Oh, I may not get (Republican support), but I'll get the Democratic votes for a tax increase," Biden said. "If we just took the tax rate back to what it was when Bush was president, top rate paid 39.6 percent in federal taxes, that would raise $230 billion. Yet they're complaining because I'm providing a tax credit for child care? For the poor, for the middle class?"
Sounds about right
I’m not a tax attorney or CPA, but I have learned enough about the tax code to know that tax increases like this end up not effecting these folks all that much,’if at all.
They go to their CPAs, have them pour through the tax code and find every imaginable tax break they can in those 70,000 pages and, VOILA, they no longer make $400k and they’re not effected by the tax increase.
So, the money has to be made up somewhere and the threshold gets lowered until it hits the working middle class who can’t take advantage of the tax code the same way.
Good luck on getting your refund, if you are expecting one.
IRS is tied up with sending out welfare, I mean stimulus checks. Mine has been there for four weeks with no sign anything has happened to it as of this AM. When I inquired, the comment was wait at least six weeks from filing. So, if no action over the next two week, I stop withholding this year till I get my money.
If you make less than $400,000, you won't see one single penny in additional federal tax. Oh, brother. Anyone who believes this is too stupid to live. Note that little throw-away line about making capital gains count as income. Just a little minor tweak. "Only affects the wealthy." Better think twice about that one.
This is the one that hits retirees pretty hard. Anyone who has invested all their working lives to retirement based on the stock market is going to feel this doubling of the tax penalty as they sell assets to feed themselves and put a roof over their head.
Then there are the people who lost their jobs and have to dip into their retirement investments. Consider this the tax penalty for selecting an occupation that becomes surplus during the pandemic.
Cat food, anyone?
A tax hike, even one on those making over $400K, is going to be painful across the board. Those who don't believe that a tide lifts all boats are going to learn that the opposite is true too. This is what happens when stupid people vote.
When I was an employee, I added up what I was being taxed at and came up to 70%. That’s insane, but hey, “free” healthcare. It’s all a joke and we’re the punchline.
By the way, the healthcare in Canada sucks great big hairy donkey... I’ll let you finish the rest.
Odd how you use the lower case "r" for Republicans but capitalize the "D" in Democrat...
So Biden is going to punish hardworking Americans who earned advanced degrees and worked hard in their careers only to be penalized for being Middle Class?
Feet. And I’m sticking to that..........
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.
Patriots also need to clue their state lawmakers to the idea that the so-called “federal” funding that state lawmakers regularly beg the feds for is arguably stolen state revenues.
The feds steal state revenues by means of unconstitutional federal taxes, taxes that Congress’s cannot justify under its constitutional Article I, Section 8-limited powers.
If state lawmakers work to put a stop to unconstitutional federal taxes then they will ultimately find new revenues for their state imo.
I must admit the so-called "President" Biden fooled me. I thought he would resign for "physical/mental health reasons" by the end of February. But it now seems Biden's in this for the long haul until at least ... May, 2021. Impressive.
Sleepy Joe, after your exhausting announcement, you may now go back to sleep for a "small to significant" amount of time.
Z-z-z-z-z-z .......
Biden can’t wait to spend other people’s money!
Taxing those with higher incomes means those individuals (owning businesses) will be increasing the costs of the services or products for in their business.
Translation:
This passed along tax increase is ALWAYS a tax on the middle class and the poor.
Yup, that's it exactly. Meanwhile funneling even more money to deadbeats who don't pay anything while squirting out kids, thus making the tax system even more biased in favor of the welfare class than it already is.
I got my refund exactly 1 month after I filed.
Let’s see Hunter’s tax returns.
I remember Clinton raised taxes on the rich. The world was coming to and end...or not.
Quantitative easing under Obama was going to cause hyperinflation....or not..
Seems to me prognostication on economic matters is really good...
I wish I was getting a refund. I ended up owing $3,200. Once I send them my check, they’ll probably have money to pay you what they owe you.
In case you didn’t notice from the tenor of my post, the republican party is going to have to earn that upper case R from me. But, as I said, they haven’t in the past 25 years so I have my doubts that they ever will. What great victory have they scored for conservatives? How many illegal immigrants are in this country? How many abortions have been performed in the past 25 years? What happened to National Concealed Carry Reciprocity? The Hearing Protection Act? How about leftist indoctrination in the public schools? The radical homosexual agenda? The only touchdown they ever scored was the only touchdown they were ever interested in scoring-tax cuts for the millionaires. Once they had that, they quit the field. AFAIC, they said FU to me so I say FU to them. I want them to suffer. I hope these tax hikes are just the beginning.
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