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Breaking: Biden’s Tax Hikes Could Mean 60% Effective Rates

Posted on Wednesday, May 5, 2021
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by AMAC Action
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taxWashington, DC – The Tax Foundation, a leading non-partisan economic think tank, has calculated that President Biden’s proposed taxes would increase taxes on wealth to over 61%. President Biden has proposed a number of tax hikes aimed at bringing in more revenue for Democratic spending proposals. The Tax Foundation and other independent economists have shown how these proposals could kill up to a million jobs in the US economy. The previous administration’s low tax and regulatory policies led to a thriving economy, record-low unemployment for women and minorities, and soaring markets, even against the headwinds of imposing heavy tariffs. The Tax Cuts and Jobs Act, enacted in December of 2017, lowered taxes across the board on individuals and businesses. The Biden administration has proposed going the opposite direction in creating a new death tax through capital gains due at death, raising the capital gains rate over 40% for some households, raising the corporate tax rate, and changing “step-up in basis,” which helps businesses continue through multiple generations.

The table below lays out how the Biden administration’s proposed tax hikes could mean a 61% effective tax for some taxpayers.

https://taxfoundation.org/joe-biden-estate-tax-wealth-tax/

Congress is now gearing up to consider both the administration’s American Families Plan and American Jobs Plan, which includes nearly $4 trillion in new spending financed by a number of tax increases. If all of these tax increases became law, family-owned and operated, businesses will face a much heavier tax burden when attempting to pass to the next generation of ownership. Inventory heavy businesses, farmers, and ranchers who have the entire value of their business tied up in land and equipment will likely not have enough cash on hand to pay 61% of their businesses to the government at death, causing more consolidation of family businesses into larger multinational firms – the exact opposite of the intended effect of the death tax. AMAC Action will continue to keep you updated on the latest news and economic statistics on the administration’s policy proposals.

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Stephen
Stephen
3 years ago

Insane and stupid beyond all belief

Robert
Robert
3 years ago

The Party that Hates America wants to bring us to our knees. Let us stand up together to SAY NO!!

Rick
Rick
3 years ago

Voting in this Administration will ultimately destroy life as we know it in America!! The liberals have elected a person and his personnel that believe they can tax the country into prosperity. A fantasy to say the least!!

Tim
Tim
3 years ago

There’s half of the population that thinks this is a great idea. Be afraid, very afraid.

Danni
Danni
3 years ago

It’s time for a tax revolt. This is ridiculously stupid. NO, BUT HELL NO!!

Danni
Danni
3 years ago

YEAH, and another thing. Is pelosi going to give up 60% of her 100 million. Probably not!! They, the democraps will exempt themselves. Once again, do as we say, not as we do!!!!

Stephen Russell
Stephen Russell
3 years ago

Lead to Great Depression 2 later?

Charmine
Charmine
3 years ago

All this because the socialists in power in our country can’t control their spending habits. God Help Us All.

Tim Thompson
Tim Thompson
3 years ago

The great lesson to be learned here is that Democrats influenced by communist-socialists want every person in the United States to be the same, poor, dependent on the government. They have kept interest rates at zero for the past 12 years effecting retirements causing the elderly to dip into their savings instead of the ability to make some decent interest like past generations who saved and made personal wealth on those dollars they saved. We now are seeing the government tax us beyond belief so they are causing family’s to barely survive with for instance excessive blue state taxation and real estate that can be barely afforded. All in all the Democrats are a destructive party who seem to hate our history of exceptionalism. For those who voted for Democrats you are responsible for this mess. Trump had it going our way in making America great again after Obama’s destructive and lying administration. Nice job.

Oren
Oren
3 years ago

Remember what happened in France when they got smart and taxed the “rich” a couple of years ago? Most of them packed up and left France. So much for that planned rape job. Plan on the same here. You think Rosie and her crowd will leave?

Mary
Mary
3 years ago

The rich will not pay a dine. They will figure out how to get around the taxes to keep their money. The taxes will destroy small businesses and the middle class. Many jobs will go over seas again. The rich will get richer and the poor will get poorer! Inflation and depression will destroy America. China will take over the US.

Max
Max
3 years ago

It is time to get rid of the IRS and do a National tax percentage where everyone shares the burden. Where it has been pointed out, the RICH will find a way out and the small business and the middle class will be taxed out of existence. This is what happened to the Roman empire and this country is on the same path.

BlaznSS
BlaznSS
3 years ago

I think taking the lifetime salaries away from them would be fair. Also they should NOT be able to give themselves pay raises.I did 37 yrs in the govt and I only got about 70% of the average of my 3 high years.. Then only get a measly COLA in January…. only to have it eaten up by Healthcare costs… Some years I’ve actually brought home less than the year before due to rising Healthcare. The system is BROKEN. It has been for years. Taxibg corporations will NOT work. They’ll only pass that money onto us.

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