Opinion / Politics / Taxes

The Coming Biden/Harris $4 Trillion Tax Hike Plan?

Biden Harris China

Photo by Adam Schultz / Biden for President Creative Commons Licesnse

“Normally you don’t raise taxes in a recession, which is why we haven’t” former President Obama told Chuck Todd in an August 2009 interview as the economy slugged along towards recovery. Yet President Obama’s former Vice President is now promising to do just that, albeit without much attention from the media. According to five independent economic analyses, (the Urban-Brookings Tax Policy Center  (TPC),  the Tax Foundation , the Committee for a Responsible Federal Budget  (CRFB), the  American Enterprise Institute  (AEI) and the  American Enterprise Institute) the former Vice President Biden is proposing between $3-5 trillion in new taxes to fund his party’s wish list of spending proposals. The Biden tax hike plan, far more extreme than former Democratic Presidential nominee Hillary Clinton’s proposal put forth in 2016, has largely fallen under the radar in a year where the virus, unrest in cities, and the media’s invented scandals of the day have dominated cable news. At AMAC Action we’ve studied the details of the Democrats’ tax plan and evaluated the veracity of their claims to not raise taxes on most Americans. Below we lay out the major differences in the Trump vs. Biden proposals and let you decide for yourself which plan is more likely to lead to prosperity for America.

Individual Taxes

Current Law: In December of 2017 President Trump signed into law an across the board tax cut, lowering taxes for most Americans. Like most of the Trump tax cuts, these changes are set to expire in December of 2025. The top individual tax rate is currently 37%.

Joe Biden: “Nobody making under 400,000 bucks would have their taxes raised, period, bingo.” Joe Biden’s claim that no one making under $400,000 would see their taxes go up is false according to at least 5 independent economic models, but is being reported as true, or left alone altogether by the media. While it is true that his plan calls for keeping rates steady for the middle class and enacting new tax credits that may benefit many in the middle class, Biden’s proposal to raise the corporate tax and taxes on businesses would make middle-class workers across the board poorer. An August 2020 Tax Foundation analysis states: “while Biden’s tax plan would make the tax code more progressive, it would reduce after-tax incomes for filers across the income spectrum by reducing the incentive to work and invest in the United States.” The analysis shows that if enacted the Biden/Harris tax hikes would eliminate nearly 600,000 jobs. Even the Washington Post, whose fact-checkers are known for contorting themselves to help support Democratic claims, decided to leave Biden’s claim unrated. The Biden/Harris plan calls for raising the top individual rate from 37% to 39.6%.

President Trump: President Trump has called for a new “10% middle-class tax cut” while promising to extend all of the positive changes from the Tax Cuts and Jobs Act, keeping taxes low or reducing them further for most taxpayers.

Capital Gains Taxes

Current Law: President Trump’s Tax plan set the long term capital gains rate at 20% while retaining the Obama era 3.8% net investment income tax on high earners. Over 50 million Americans have some type of savings in a retirement plan or the market.

Joe Biden: Raise the top capital gains rate from 20% to 39.6% on high earners (tax capital gains as ordinary income).

President Trump: Index the current capital gains rate to inflation and further reduce the capital gains rate for all taxpayers.

The Death Tax

Current Law: President Trump’s Tax Plan nearly eliminated the estate tax by raising the current exemption to protect most family-owned businesses and farms. This less-burdensome death tax is set to expire in December 2025 if Congress does not vote to extend the current law.

Joe Biden: Hike the death tax by undoing the positive changes the President made in the Tax Cuts and Jobs Act. Eliminate “step-up in basis” on inherited assets. Force capital gains taxes to be paid at death on unrealized gains from inherited assets.

President Trump: Extend the current exemption and permanently repeal the death tax. The President believes that no one should have to visit the taxman and the grim reaper on the same day.

Deductions and Credits

Current Law: President Trump doubled the standard deduction to over $24,000 per couple simplifying taxes for nearly 30 million taxpayers, enacted a new 20% small business deduction, and enacted a more generous child tax credit of $2000 per child and $500 per dependent.

Joe Biden: Phase out a number of credits and deductions for individuals starting in the 28% bracket. Enact a number of new tax credits promoting green energy. Eliminate the 20% small business deduction for many privately owned businesses.

President Trump: Permanently extend the expanded standard deduction, child tax credit, and 20% small business deduction to help families and small businesses.

In comparing the proposals between President Trump and Joe Biden there is a consistent theme: Joe Biden is likely to hike your taxes while President Trump will keep them low or reduce them even further. As the Presidential campaigns head into the final stretch, look for Biden to continue to claim his plan won’t affect anyone but the wealthy. Armed with the facts you can now fact check Biden/Harris for yourself. President Trump understands, and several independent economic studies confirm, that you simply cannot raise taxes on businesses, as Joe Biden hopes to do, without affecting workers and the economy as a whole. Even President Obama publicly rejected the idea of raising taxes during a recession but Biden/Harris will have no choice if they are to fund a transformational Democratic agenda on climate, education, health care, and social justice. Our AMAC Action team will continue to cut through the rhetoric, keeping you informed on the reality of what Democrats are proposing. Please continue to stay engaged through the home stretch of this election season as we work to keep you informed and stand ready to protect your pocketbook, your small business, and the economy.

Written by Palmer Schoening

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Stan d. Upnow
8 months ago

Understand that ANYTHING that they put out for public consumption is a watered-down & sanitized version of their actual agenda. They are ALL Progressive-Socialists; get it? SOCIALISTS(aka, proto-Communists). They will destroy entire private industries with the goal of nationalizing them. They have stated that goal in the past.

Duane
8 months ago

Only fiduciary derelict morons would propose something like this. WE ARE ALREADY BROKE! How about a plan to get SOLVENT! Idiots.

Duke
8 months ago

Well… let’s see Biden is raising taxes on corporations…. it’s laughable. What do businesses do when their costs go up?…..YEP RAISE PRICES…. so who pays in the end…WE DO…..Biden is all smoke and mirrors. NY gave corporations 10 years of big tax breaks to move to NY. Now everyone wants to know why these corporations aren’t paying ANY TAXES… they forget. They can ask their governor why…. NOTHING IS FREE… don’t let Biden lie to you…. 47 years and he’s still making promises and only thing that he and his family have done is get rich off you and me.

Last edited 8 months ago by Duke
Thetruth
8 months ago

Biden is lying liike every commercial he puts out. He learned well from Obamanation of Desolation(lie,lie,lie). If he would be cheated in, which is a very good possibility, he’ll say I meant $4,000.

PYT
8 months ago

How can anyone vote for a Democrat/Socialist party that legally supports a womans right to murder the unborn. If a party does not support or defend the sancity of life they have lost all credibility. Gov. law vs. God’s law. Demcorat Party a Godless party based on their words and actions. Goal is to replace God with a false God called Government. If we ever forget we are a nation under God, then we will be a nation gone under. LIFE, liberty and the pursuit of happiness. Tax increase would be just the tip of the iceberg with a “radical” change in this country. Our freedom and success determined by a Socialist Government punishing success and rewarding failure. 4 trillion tax hike says it all. 2020 choice is to either empower the Government or empower the people. Not a time to be silent. Hopefully America is awake!

Garye
9 months ago

Here we go again people, it’s the same democrat lies and failed policy for the last 50 years!
Hidin biden has been guilty of it for 47 if them.
When will half of America wake the heck up????

JohnH
9 months ago

Is there any discussions to stop increasing the National Debt ? How can you have tax cuts that are paid with borrowed dollars???

Linda M
9 months ago
Reply to  JohnH

Whenever a tax cut is proposed these are the same people who say, “Where is that money coming from?”. Ah, but to spend requires no logic.

Steve
9 months ago

Good grief people. WHY, WHY does Trump interview Woodward and Stepanopolous ???? Its like running toward someone holding a knife.
I thought Woodward was in his grave. Why revive this cadaver ?? Major disappointment. Foolish move to say the least. Trump’s handlers
need to wake up. Is Trump going to let Obama interview him next ?

El Ey
9 months ago
Reply to  Steve

Steve, I think that President Trump is so smart to “run toward someone holding a knife” because he gets a taste or sample of what’s to come during the debates or town halls. President Trump will be so well prepared.

Danny Estridge
9 months ago

Starting to wonder when the Democrats will start taxing non-taxable income like VA comp or worker’s comp due to injury? I live off of what they give me now. In a heartbeat I’d like to be able to work, but can’t. Instead of slowly screwing me even more, why not just put a bullet in my head. Bullets are less the a dollar per round versus them taxing more of what I don’t have. I, even today have 2 places where I can stay if I lose everything, just getting to old to hunt, have to figure oout a way how to lure food to me. Providing I still might have a gun. Just saying.

Bill Brown
9 months ago

Know what your Children are being taught in School!  It is your RIGHT and DUTY to KNOW!!  Join the Trump Movement – The American Revolution Version 2!!!  Become a Counter-Revolutionary!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Bill Brown
9 months ago

When the Communist “Reign of Terror” going-on now in Democrat controlled cities becomes nationwide after a Trump/Pence Victory, we will not be able to avoid defending ourselves and our Country against the rioting and bloodshed!  We must be ready to “Take-up Arms and FIGHT!!”  Join the Trump Movement – The American Revolution Version 2!!!  Become a Counter-Revolutionary!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Bill Brown
9 months ago

Join the Trump Movement – The American Revolution Version 2!!!  Become a Counter-Revolutionary!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Bill Brown
9 months ago

IF YOU LOVE YOUR CHILDREN, find an alternative to Public Education.  It destroys individual thinking!!  Charter and Parochial Schools can be OK but Home Education is best although it may require lifestyle changes.  EACH OF US MUST CHOOSE!  “IF YOU LOVE YOUR CHILDREN…”

Bill Brown
9 months ago

Winston Churchill: “The greatest proof against Democracy is a 5 minute conversation with the average voter.”  In America, the greatest proof against Democracy is that millions of average voters will vote for a Party that openly states that they will rise our taxes by 4 Trillion Dollars!!  Our founders’ greatest fear was “The Tyranny of the majority!!  Join the Trump Movement – The American Revolution Version 2!!!  Become a Counter-Revolutionary!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Bill Brown
9 months ago

Keep the Trump Movement growing!  It is the rebirth of the American Revolution!!  Become a Counter-Revolutionary!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Bill Brown
9 months ago

The Dems/Communists are now calling it the Harris Administration!  The “little girl on the bus” could not earn the Presidency so she is having the “mean white man” “hand it to her”!!  Join the Trump Movement – The American Revolution Version 2!!!  Become a Counter-Revolutionary!!!  Stand-up for America!!!!  Remove Every Democrat!!!!!

Walter
9 months ago

Make no mistake. The $4T tax increase is a low figure. And if you think the middle class will not see a tax increase your mistaken. That amount of money won’t even begin to address the Dems Green New Deal. The middle class will all but disappear. Sounds gloomy, huh! I can’t even imagine how Bloomberg is donating $100M in Florida -you think he is buying votes and that he will not get anything in return-think again. Shouldn’t there be an equal limit that can be donated to each applicable politician. Speaking of mail in votes, they can’t even get it right in CO-you know the Dems are counting on this to get illegals counted for them-what a scam! K. Harris who downplayed Biden during the initial run off now speaks as if he can do no wrong-I guess whatever which way the wind blows. Can you imagine if she is President-she can’t even make up her mind. President Trump is still getting things done that America has long needed doing without the help of the useless Democrats. As for me, I will vote for Trump, keep building the wall, remove the illegals and moving forward. I am a proud white American Veteran and will never take a knee during our National Anthem, I will stand Proud. I am all for fairness but I will not appease 15% of the USA population especially BLM population. Nowadays, I will remain locked and loaded and I will stay the course of the Red White and Blue. Just my thoughts.

Carol Jean
9 months ago

For 2018 I paid an ADDITIONAL $350 in federal taxes, as compared with 2017 rates. This was due to combining the standard deduction and personal exemption. If they had not been combined, I could have filed itemized deductions. I was not one of the “most Americans” who got a tax cut. My gross income was under $40000.

Jesse Tiede
9 months ago

The Liberal Progressive Socialist Democrats say they only want to TAX THE “RICH”! If every penny was confiscated from the “Rich”, it would be much less than $2 Trillion. That still leaves a $3-5 Trillion short. Humm, I wonder who will pay for THAT? Well, you can only go to the well so many times before it dries up. Just look at all the manufacturing, and other businesses that moved overseas to avoid Democrat backed taxes! Do you think they won’t leave, AGAIN, if the Democrats push more taxes? Ok, so THAT source is gone, so, where else will they find the money to fund these Communistic ideas of FREE Medical, and FREE college? If you’re thinking it’s US, the “Middle Class”, who WORKS and pays the bills, you are correct! So, with Free college, free medical, free food, free rent, free money for NOT WORKING, just how long will it be until EVERYBODY is getting the free stuff, and NOBODY is working to pay for it? Hummmm, America, what a (Socialist) country…

Brenda Blunt
9 months ago

Biden and Harris ARE idiots. They have NO concept of what the regular legal American citizen goes through or endures.

Bill Brown
9 months ago
Reply to  Brenda Blunt

The real IDIOTS are those who will vote for a Dem with dementia and a failed Communist!!

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