Opinion / Politics

Biden’s Budget Chokes Retirees, Main Street Businesses, and Federal Revenues with Investment Taxes

bidenIn addition to hitting lower and middle-income American families and small businesses with higher taxes, President Biden will be retroactively choking America’s investment infrastructure that’s vital to encouraging savings and funding for community projects and Main Street businesses.

President Biden’s forthcoming budget raises the tax rate on investment to 43.4% from 23.8% for certain “households,” according to a new report from the Wall Street Journal. Worse, it backdates the tax hike to April—meaning if you sold a family business in April 2021 or anytime thereafter, you will face the unlucky surprise of a tax bill that nearly doubled.

This retroactive tax hike will be particularly devastating for small business owners who reinvested all of their savings to build their businesses, and who were relying on the sale of that business for their retirement security.

KEY TAKEAWAYS:

The last thing we need is higher taxes that discourage investment and reduce financing options that small businesses rely on.

  • American families and small businesses are still recovering from the pandemic, and the April jobs report shows signs of our recovery slowing.
  • While President Biden claims he’s going after “millionaires,” his tax increases attack America’s investment infrastructure that small businesses rely on for investments, while reducing the wages of workers who aren’t wealthy.

Biden’s tax hike on investment actually REDUCES federal revenue.

  • The Tax Foundation finds it would shrink federal revenue by $124 billion over 10 years.
  • Penn Wharton estimates that raising the top capital-gains tax rate to 43.4% would shrink federal revenue by $33 billion over 10 years.

Experts are panning Biden’s plan to hike taxes on investments.

  • The Wall Street Journal editorial board described it as “the dumbest tax increase.”
  • The Left-leaning Tax Policy Center writes that the revenue from taxing long-term capital gains is maximized when the top rate is far below Biden’s proposal, and notes that the Congressional Budget Office and the Joint Committee on Taxation agree.
  • Larry Lindsey, a former Federal Reserve governor, said it’s “taxation purely as a form of punishment and is even willing to sacrifice revenue to carry it out.”

Reprinted with Permission from - Committee on Ways and Means

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter
and Download the AMAC News App

Sign Up Today Download

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter!

Sign Up Today
Read more articles by Outside Contributor
Subscribe
Notify of
14 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Troy
3 months ago

I am continuously disappointed when articles proclaim the stupidity of the Democrats. Their policies are intentionally destructive to the United States of America. It is always a mistake to underestimate your enemy and that is what is being done every time some author of an article says that they are stupid. The Democrats know exactly what they’re doing They are destroying the United States so they can continue with their “Great “Reset” and “build back better”. Their vision of the world is a world devoid of freedom. Conservatives had better pull their heads out of the sand and take the gloves off.

Jim Jolly
3 months ago

I guess if you keep telling the American public that you are stupid them after a while they become stupid. NO Democrats we are not stupid and hopefully it will backfire on your organization.

Jim Jolly
3 months ago

Evidently I have been censored because when I say anything that mentions the Presidents wrong doings I get my message removed upon entering my name and email address

Paul
3 months ago

Barack Obama is still the worst President in seventy-one years, but no fear His Excellency Joey Biden has three more years to surpass Obama as the worst president in American history.

Leonard Taylor
3 months ago

Talk about a Manchurian Candidate. This idiot is doing his best 2 ruin this country

Bill on the Hill
3 months ago

This half past dead 78 year old man, suffering from ( 2 ) aneurysms, one on each side of his head & otherwise known as sub-arachnoid hemorrhage has survived ( 2 ) brain surgeries as a result of this brain disorder… One has to ask a question: Is it any wonder why he constantly stutters & completely forgets himself in the middle of a sentence? This condition was obvious long before the STOLEN ELECTION whilst his ” handlers ” kept Biden in his basement & for quite obvious reasons…
With respect to the storyline here, Joseph Robinette Biden is a total & complete disaster & he is hellbent on destroying this nation with these ludicrous tax laws that will completely UPEND everything President Trump did to MAGA with more favorable tax rates, tax incentives to bring companies back home, lower corporate tax rates to create investments within our own country, lower the average taxpayers tax burden with each & every paycheck earned, the end result being a strong booming economy, lowest unemployment rate in ( 50 ) years for ALL people of ALL colors. Economic OPPORTUNITY ZONES in most the major minority cities run by the Democrats that turned those cities into the shitholes they had become…We finally had a president that represented We The People, ALL people regardless of race or gender…President Trump is a ” populist president ” this has been STOLEN from each & everyone of us, all Americans, both parties…
God Bless America,
Bill on the Hill… :~)

Troy Stinson
3 months ago

I’d like to ask you a question sounds to me you may have an answer if it’s possible.How do we get President fraudulent appointed Biden out of office when it obviously won’t happen with Democratically controlled government all 3 branches basically ?

Max
3 months ago
Reply to  Troy Stinson

There is a way that was used starting in 1776 against the British—- REVOLUTION. Our forefathers wrote what to do in the Declaration of Independence, the Constitution and the Bill of Rights that when the Federal Government got too crazy, we have the right to bear arms through militias to get rid of tyranny. How many of us had the education of great civic teachers who taught us about our rights?

Bill on the Hill
3 months ago
Reply to  Max

I did growing up in the ’50’s & ’60’s starting in elementary school & into high school. I was taught American history & we chose which part of that American history to write our essays on… I chose The Great Civil War in my freshman year…I read & understood Lincoln’s Gettysburg Address front to back & I had it memorized without the need of notes, over time I came to understand it’s true meaning by repeatedly reading it all the way through. This is precisely what has been missing from our schools long before the current imbecile stole the presidency. Civic education is sorely needed again & President Trump was moving in this direction with his 1776 Commission to be distributed to ALL of our schools across America, until that is Comatose Joe canceled it & force feeding our nation into WOKENESS, cancel culture, CRT, & the 1619 Project that now replaces the 1776 Commission…
Bill on the Hill… :~)

Bill
3 months ago

It‘s really no surprise that comrade Biden has such a strong constituency among the dead. He‘s one of them for all intents and purposes.

Rich
3 months ago

Why do you call it a budget? They don’t have no stinking budget! They have a big black hole full of imaginary money. We would call it taxes. They call it free! Everything is now free. At least to SOME people.

Max
3 months ago

As usual, the Democrats with the Media told the American people many false truths and we’re going to start paying the Piper. This is the start of the collapse of the middle class.. Those who are not working will continue to get a free ride until the economy collapses and only the rich will remain. Taxes always go up when the LEFT WING Democrats take control and the mislead people are stupid enough to believe their lies.

Trebor
3 months ago
Reply to  Max

I hope those who voted for him are HAPPY!!!!!

Todd Jaffe
3 months ago
Reply to  Trebor

They are. They are still living on the government teat, and those of us working are becoming more afraid to go outside and have less money to do anything anyway.

14
0
Would love your thoughts, please comment.x
()
x