The presumptive Democratic party candidate for president, Joe Biden, has put forward a plan that would reverse Trump-era economic prosperity, raise taxes, increase unemployment, and plunge the country into a modern-day depression.
“I’m going to get rid of the bulk of Trump’s $2 trillion tax cuts, and a lot of you may not like that, but I’m going to close loopholes like capital gains and stepped-up basis,” Biden reportedly said.
Biden’s proposals show his increased move farther to the left and play into the seething hatred his left-wing string-pullers such as Vermont Sen. Bernie Sanders and New York Rep. Alexandria Ocasio-Cortez have for upper class Americans. In fact, his proposal would negatively impact working families and add upwards of $4 trillion in new taxes.
A recent Wall Street Journal analysis of the far-left agenda highlights that the Democrat’s plan panders to wealthy San Francisco and New York City residents while leveling debilitating taxes on ordinary citizens. The so-called capital gains and stepped-up “loopholes” Biden speaks to was increased by President Trump and Republicans to ensure family farms and fishing outfits were no longer stung by crushing taxes when parents pass away. Under the Democrat’s proposal, the top new rate would spike to 39.6 percent.
“That’s almost double the current top rate of 23.8 percent, including the ObamaCare surtax. Capital gains haven’t been taxed as heavily as Mr. Biden proposes since the bad old 1970s,” the Wall Street Journal reports.
Adding insult to injury, Biden plans to repeal the stepped-up death tax.
“This could mean slapping capital-gains taxes on the dearly departed. Or the property received by heirs would arrive with taxable capital gains hidden inside, and no adjustment for inflation,” the Wall Street Journal states. “Mr. Biden hasn’t said what he’d do to the estate tax, currently set at 40 percent, above an individual exemption of about $11.6 million. But his new pal Bernie Sanders wants to lower the exemption to $3.5 million and lift rates up to 77 percent.”
It’s been widely reported that the so-called Biden-Sanders Unity Task Force is run by the Vermont socialist and his far-left cronies. Following through on this policy would result in families losing farms just to pay the taxes when parents and loved ones die.
In terms of working Americans, Biden’s proposals would result in tax increases to every single tax bracket. Low-income families would suffer an increased burden equal to those in the 80-90 percent earning brackets and pay more than the top 95- to 99-percenters. That means less money in your weekly paycheck the Tax Cuts and Jobs Act of 2017 helped working families keep. But everyday Americans may not need to worry about jobs because other elements of the Biden plan would create massive unemployment.
Payroll taxes would increase to include a 12.4 percent Social Security fee without limits. Such increases have historically led to large employers cutting workforces. Doubling-down on hitting big employers, the “progressive” agenda calls for raising corporate rates to 28 percent, which would be 7 points higher than the competition in the EU. Levies against foreign earning would double from 10.5 to 21 percent. The Trump administration fought to lower these fees to incentivize multinational corporations to invest in American businesses. The move returned billions of taxable income and drove unemployment to historic lows.
These actions are a perfect storm for ushering in another Great Depression as businesses try to pull themselves out of the economic disruption caused by the pandemic. They are also tailor-made for China to reassert itself as the number one economy, much like it did during Biden’s first stint in the White House.