Biden plans to increase taxes, cut child tax credit, discourage investments
Our country does not have a revenue problem, it has a spending problem: Rep. Jason Smith
House Ways & Means Committee chairman Jason Smith, R-Mo., reacts to the Iranian attack on Israel, the IRS' targeting of those who make $200,000 or less and foreign aid spending.
Joe Biden thinks he has the solution to stagnant growth and high inflation.
His plan? Biden wants to raise your taxes.
This might sound like a bad joke, but it’s reality. President Biden wants to raise taxes at a time when many Americans are struggling to put food on the table and fill up the tank.
President Biden listens to a question from reporters upon arrival at Seattle-Tacoma International Airport, in Washington, on May 10, 2024. (Mandel Ngan/AFP via Getty Images)
Biden wants to raise taxes in a multitude of ways that will harm hard-working families and destroy American innovation.
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For starters, he wants to let the Trump tax cuts expire. I’m not just saying that, that’s a promise Biden is making. He recently said in a speech, "It’s going to expire, and if I’m re-elected it’s going to stay expired." He then doubled down on that promise with a social media post echoing that statement.
Let’s be clear about what letting the 2017 Tax Cuts and Jobs Act expire will mean.
The child tax credit that was doubled under President Trump would be cut in half, reducing take-home pay for millions of working families. The standard deduction, utilized by over 90% of filers, would also be cut in half. Rates would go up on all taxpayers, and small businesses would see their tax rate increase to over 43%, making them uncompetitive against large corporations.
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If the Trump tax cuts are not extended, working Americans would face a record tax hike and the economy would suffer in the years to come. The average family of four making $75,000 will see their taxes increase by over $1,500 if Congress does not take action.
The 2017 tax bill overwhelmingly helped low- and middle-income Americans. As a result of the Trump tax cuts, Americans earning under $100,000 received an average tax cut of 16%.
Joe Biden wants to go further than letting the tax cuts expire, he plans to introduce new tax hikes of his own.
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Biden wants to cripple innovation with a historic capital gains tax hike. He is calling for raising the top capital gains tax rate from 28% to 44.6%.
As Americans for Tax Reform wrote: "The proposed Biden top capital gains tax rate is more than twice as high as China’s rate. China’s capital gains tax rate is 20%. Is it wise to have higher taxes than China? And with Biden’s combined federal-state capital gains rate of 59% in California, residents will face a rate nearly three times as high as China."
Such a dramatic increase in capital gains tax would cripple innovation as few would be willing to invest knowing that the government reaps half the reward.
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To summarize, the Biden tax plan is as follows – increase taxes on low-income families, cut the child tax credit in half, and discourage investments.
This reads like a plot to destroy the American economy, but, unfortunately, this is the platform of the Democratic Party nominee.
Biden justifies his plot to raise taxes with a boatload of lies about the Trump tax cuts. He repeatedly claims that they "overwhelmingly benefited the wealthy." That’s a lie.
An analysis of IRS data found that "most middle-income and working-class earners enjoyed a tax cut that was at least double the size of tax cuts received by households earning $1 million or more." As a matter of fact, the top 1% of filers actually saw their share of the tax burden increase after passage of the Trump tax cuts, contrary to what Biden and Democrats have claimed.
Biden’s demagogic lies about Republican tax policy will ironically lead to working-class families paying higher taxes. When you're voting this November, think about Tax Day on April 15, an annual event that Joe Biden wants to make even more painful.
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Republican Jason Smith represents Missouri's 8th Congressional District and is chairman of the House Ways and Means Committee.
