President Donald Trump resurrected the American Dream by cutting taxes, reworking trade deals, and bringing back job opportunities. If Joe Biden wins the White House based on the Dec. 14 Electoral College vote, his tax policy could make America poor, again.
The Biden tax plan bears a striking resemblance to debilitating policies of the Obama years. That’s no accident. The Obama-Biden administration were staunch advocates of raising taxes on those they targeted as “the rich.” From 2009 through 2016, that included any household that earned $250,000. Many of those families were small and mid-sized business owners who created jobs and earned enough to fund retirement and pay for their children’s in-state college tuition.
During the Obama-Biden years, the median household income was just over $57,000 in 2009. When the pair turned the reins over to Trump, they had managed to move the chains to just over $60,000 — about $3,000.
Since then, President Trump and the GOP enacted the Tax Cuts & Jobs Act that shot family incomes to over $68,000 in 2019. That’s $8,000 in three years with 2020 gains yet to be tallied. In terms of unemployment, it’s well known that Trump and the GOP helped drive the rate to its lowest in more than 50 years before the pandemic hit. Since the country was forced to shutter the economy, unemployment has already been cut in half. Those accomplishments are unprecedented and about to be undone if a pair of Georgia runoff races give Democrats 50 U.S. Senate seats, and Biden ascends to the White House.
A recent analysis by the Wall Street Journal culled information from the liberal-leaning Tax Policy Center to highlight what a Biden wish list would look like. His published policy plan would be to target “rich people” whose family income exceeds $400,000. Again, many are business owners who employ blue-collar Americans and helped drive unemployment down. These are critical findings that working families should be concerned about.
- Higher Income Taxes: Rates would spike to pre-2018 levels, and taxpayers earning at or above $400,000 would pay approximately 3 percent more.
- Capital Gains Tax Hikes: Rates on dividends would surge from 23.8 percent to nearly 40 percent.
- Social Security Taxes: Biden would impose a Social Security-related tax of 12.4 percent on people who have other revenue sources after retirement age. Seniors currently incur no additional taxes until income reaches $142,000.
- Reduce Pass-Through Deduction: Business owners who use the convenient 199A pass-thru deduction created in 2017 that allows them to offset business losses by as much as 20 percent would lose some, if not all, of the deduction. The 199A deduction helped create jobs by minimizing business losses and offsetting investment.
Biden likes to tell Democrat audiences he will reverse the Tax Cuts and Jobs Act that spurred economic growth and benefited blue-collar Americans and business owners alike. He then tells moderates he won’t kill deductions that help them pay the mortgage and create opportunity for their children.
If Democrats control both chambers of Congress and the White House, as they did before 2010, they will wage an economic war on working families. That’s how Americans were shackled with Obamacare that forced blue-collar families to buy useless policies or pay a tax fine. If Biden and the Democrats get carte blanche power, they will make America poor and dependent all over again.