By Chris Black
It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.
We’re 2 months into Biden’s regime and it’s already payback time. According to mainstream sources, the Biden administration is trying to finance a “New Deal” of sorts by raising taxes on middle class Americans, as well as repealing Trump’s tax cuts.
Basically, Team Biden is looking to help fund the so-called COVID package (1.9 trillion in last round of stimulus, of which not 10 percent was actually COVID relief for the people) by raising both corporate tax and personal rates. The end goal of the first major federal tax hike since the nineties is to fund Biden’s economic plan tackling climate, infrastructure and education.
Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source. While it’s been increasingly clear that tax hikes will be a component – Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates – key advisers are now making preparations for a package of measures.
With each tax break and credit having its own lobbying constituency to back it, tinkering with rates is fraught with political risk. That helps explain why Bill Clinton’s signature 1993 overhaul stands out from the modest modifications done since.
It looks like the tax hikes are going to take effect in 2022, and according to Bloomberg, the new revenue streams for the federal government should raise $2.1 trillion in 10 years. However, the Democrats must convince 10 Republican Senators to back the respective bill to avoid a filibuster, and that’s highly unlikely.
Biden plans to raise corporate tax from 21 percent to 28 percent, and the income tax on individuals earning over $400k/year, expand the estate tax reach, and higher capital gains for individuals earning over $1 million/annually.
However, if you take into account the fact that the federal government borrows 80 percent of the budget, why bother with hiking taxes? The answer is pretty simple though: to destroy small businesses and the middle class, duh!
More precisely, the tax code is punishment for wrong behavior. Who voted for Trump?
Basically, Democrats know how to do four things:
– increase debt to spend money they don’t have to buy votes
– steal most of the money they spend
– raise taxes to suffocate prosperity
– lie about all of it
When you have a system where 50% of the filers pay zero taxes and in fact receive earned income credits proves we have a broken system. There aren’t enough millionaires and billionaires to pay this ridiculous tax. Besides they will just move to a location with a more favorable tax structure. So then who is left holding the bag?
Can you say the middle class?
In 2018, Amazon posted income of more than $11 billion, but the company paid $0 in federal taxes. In fact, thanks to tax credits and deductions, Amazon actually received a federal tax refund of $129 million.
Rich people don’t pay more taxes. They pay accountants, lawyers, and lobbyists. The total amount of taxes paid by “the rich” increased after the Trump tax cut was implemented. This tax cut did more to narrow “wealth inequality” than anything the left can come up with.
Biden’s plan will backfire (perhaps according to plan). The rich will pay less, the rest of us will somehow pay more, and America will continue to be destroyed as capital finds a more welcome environment elsewhere in the world.
At this point we have to give up on the idea that someone actually cares about fiscal responsibility and simply focus on placing as many obstacles as we can to avoid a full blown dead people on the street depression.