Democrat candidate Joe Biden has repeatedly pledged that he will “absolutely” not raise taxes on any American who earns less than $400,000. However, policy analyst Taylor LaJoie at the Tax Foundation, observed, “We and other analysts across the political spectrum concluded that the tax increases proposed by the Biden-Harris campaign…would to some extent fall on the middle class.”
LeJoie points out that there is a huge difference between who writes the check to the IRS “and who ultimately bears the economic burden of the tax.” When Joe Biden continually claims that he will only raise taxes on earners whose incomes are over $400,000, the implication is that his tax plan will target only those taxpayers.
But deeper economic analysis tracks Biden tax increases downstream and beyond the wealthy person or corporation writing the check. In fact, as one economist points out “it is simply not economically possible to segregate the impacts (of taxes) on the high-income from everyone else.”
A raise in the corporate and business tax can mean lower pay for employees across the board. For example, the American Enterprise Institute found that a mere one percent increase in the corporate tax rate correlates to a 0.5% decline in real wages. Also, in 2007, the nonpartisan Congressional Budget Office provided a more damaging perspective: workers carry the burden of corporate taxes and typically bear 70% of those costs.
Then there are the under-reported changes the Biden tax plan that could result in higher direct tax increases for everyone. The Biden plan does away with deductible traditional contributions for retirement plans—401(k)s, IRAs, and others.
While details at this point are ambiguous, they involve taxing income twice. Only after-tax contributions can be stashed away in retirement accounts. When the funds are later withdrawn, they are taxed again.
The plan tries to offset the double taxation with a refundable tax credit for each dollar contributed. The scheme would also lower the tax benefit of most traditional retirement accounts for people earning above $80,250. That is, in fact, a tax increase.
Biden’s retirement plan changes hit higher earners with the intention of leveling the playing field of tax deferrals. His unintended targets could be everyone — the employers included. Reducing the tax benefits that higher earners receive could increase the likelihood of businesses abandoning those retirement packages altogether.
Employers who pay their share of 401(k) plans have to offer the same benefit to everyone. Under the Democrat plan, business owners would see their own tax benefit eroded. Some bosses—particularly on the higher earning end – may lack the incentive to continue offering retirement accounts if their tax benefit is slashed.
The CEO of the American Retirement Association, Brian Graff, starkly observed, “If you take the tax deduction away and reduce the tax benefit, without also addressing the nondiscrimination rules (of retirement plans), you’ve blown up the bargain.”
Then there is the troubling news that Biden supports a financial transaction tax on middle-class Americans proposed by Sen. Bernie Sanders. This is where the federal government charges a fee to 401(k) accounts each time a transaction occurs.
Lying Joe says no one earning under $400k will get an increase. More left wing lies!!
The Democrats promise to “give everything away”…..but those giveaways have to be paid for by others who are working & paying for them. Just a traditional Democratic tactic to promise people without futures the world. President Trumps moves to reduce corporate tax was to enable our companies to increase manufacturing in the USA, to have the resources to pay employees more money, hire more employees and improve our local communities, states and nation! It is just common business sense!! But, then again, the Democrats in charge of the Democratic Party are all a bunch of criminals.
FOOT IN THE MOUTH BIDEN IS THE MOST PROLIFIC LIAR SINCE OBAMINATION SAID IF YOU WANT TO KEEP YOUR HEALTH CARE YOU CAN !!! HOW DO YOU SLEEP AT NIGHT LOOKING INTO THE EYES OF THE POOR AND WORKING CLASS PEOPLE AND LIE AND STEAL AND SELL OUT AMERICA FOR MONEY WHEN YOU ARE ALREADY A MULTI MILLIONAIRE ??? SCUM FLOATS AND WE NEED TO FLUSH THIS PILE OF LYING SCUM DOWN THE TOILET !!! WISH WE COULD SEND HIM AND HIS ENTIRE FAMILY TO CHINA FOR THE REST OF THEIR MISERABLE LIVES, AS A MATTER LETS SEND THE ENTIRE NEW COMMUNIST PARTY THERE WITH THEM !!!! VIETNAM VET 67-68
they certainly are and stupid if they think people will fall for their lying. I AM74 YEARS OLD…THERE IS NO FREE LUNCH TO BE HAD ,NEITHER FREE TUITION, HOUSING, HEALTH CARE…SORRY TO DISAPPOINT YOU YOUNG PEOPLE. MY DAD WAS A PA COAL MINER, I PAID FOR MY DEGREE, NO PELL GRANTS JUST WORKING AND ATTENDING CLASSES…HARD WORK PAYS OFF. i WRITE THIS BEING A DEMOCRAT FOR OVER 35 YEARS. THE DEMOCRATIC PARTY TODAY WOULD HAVE ALL MY RELATIVES ROTATING IN THEIR GRAVES. WAKE UP AMERICA BEFORE IT IS TOO LATE…
I AM 74 YEARS OLD, WHAT TOOK YOU SO LONG TO REALIZE THAT THE DEMO-COMMIE PARTY CHANGED RIGHT AFTER THE KENNEDY, ROBERT F. , WAS MURDERED ???? JOHNSON WAS A CROOK AND RACIST AS WAS THE ENTIRE DEMO-RAT PARTY, VOTED AGAINST EVERY CIVIL RIGHTS BILL AND KEEP THE BLACK PEOPLE UNEDUCATED AND IN POVERTY !! I ALSO BLAME THE BLACK PEOPLE FOR THIS BY THEIR CONTINUAL VOTING FOR DEMO-RATS WHO NEVER HELPED THEM JUST TALKED A GREAT TALK !! NOW TRUMP HAS DONE WHAT THE DEMO-RATS NEVER DID. WE ARE LOOKING AT WHAT RONALD REAGAN SAID THAT WE ARE ONLY A GENERATION AWAY FROM LOSING OUR CONSTITUTIONAL REPUBLIC, AND LOOK AT WHAT THE POOR BRAINWASHED COLLEGE STUDENT ARE SAYING ABOUT AMERICA AND OUR CONSTITUTION !! VOTE DEMO-RAT VOTE FOR COMMUNISM !!!! VIETNAM VET 67-68
any one that beleive that bull deserve what happens to them.he want’s to take everything he can from all of us we will be like all the other country and have to beg for our freedom.because they will own us.that’s what we will have if the dem’s go in office
Democrat candidate Joe Biden has repeatedly pledged that he will “absolutely” not raise taxes on any American who earns less than $400,000.
The Harris/Biden admin are total and complete asinine LIARS, the majority of raised taxes will be from the middleclass and poor people. Look back in history every democrat raised the taxes were raised on the middleclass and poor, rich democrats quit paying taxes under the Clinton/Obama admin.
The last cut in the corporate tax did not result in higher pay or more jobs. Most of the money was spent on stock buy backs. Of that tax cut 87% went to one percenters and corporations. Oh I’m sorry I’m confusing you with the facts.