Numerous articles have been written that outline how a Biden administration would increase most, (if not all), of your taxes.
Biden has promised that households with combined income of more than $400,000 will not be levied an income tax increase. However, he will increase payroll taxes which costs businesses more and also increase corporate taxes. How will those companies offset the increased tax liability? You guessed it, they’ll cut labor and cut wages or they will increase the cost of the goods you purchase, effectively diminishing the buying power of your dollars – surprise, you will pay for those tax increases one way or another.
Biden plans to increase taxes on investment income. In an October 8, 2020 article titled, Taxes And The Economy If Joe Biden Is Elected President, Forbes said, “the greatest impact on economic growth comes from taxes on investment income. That’s because greater investment in productive capacity increases the value of labor. Although we sometimes think of capital and labor competing with one another, they are actually complements. The more you have of one, the more valuable the other.” So if there are additional taxes on investment income (and in Biden’s plan also on estate income and unrealized gains) then your value as a worker (what you will be paid) goes down, not up.
Bloomberg published an Opinion article on October 14, 2020, titled, Biden Would Smother the Economy by Raising Taxes. The author writes, “increasing the corporate rate would reduce U.S. competitiveness, productivity and wages over the longer term.” He makes the case that the Biden tax approach to increase the overall number of tax dollars coming into the government’s bank account is a wrong-headed approach for growing back an economy still suffering from lockdowns.
WSJ Editorial Board wrote an opinion on October 16, 2020 titled Biden’s Tax Whopper, which outlines the big fat lie that your taxes will decrease and will instead increase. The piece begins, “Joe Biden got a pass from the media for the myriad whoppers he told about his policies in Thursday night’s town hall. But one that we can’t let slide was his claim that he only intends to make people earning more than $400,000 “pay what they did in the Bush Administration—39.6%.”
Further, the article says that Biden “wants to extend the Social Security 12.4% payroll tax to income over $400,000. The current cap is $137,700. Half of the payroll tax is paid by the employer, but economists know it’s still a tax on labor income, which means workers. The top marginal rate would rise to 57% including 3.8% in Medicare taxes, and that’s before state taxes that run as high as 13.3% in California.” Ouch!
If the opinion writers featured in Forbes, Bloomberg, and WSJ are shouting about tax increases from a Biden administration, you know it must have some (if not complete) truth or those left-leaning publications wouldn’t have touched the subject.