The impending Tax Hike
The Biden Administration is planning a major tax increase. I'm not sure how many Americans voted for that, but they're going to get it. After all, they got that "covid relief" package that partially dealt with covid relief.
Supposedly, if we can still believe unnamed sources, t he tax increases will include:
Raising the corporate tax from 21 percent to 28 percent
Increasing the income tax rate on people making more than $400,000
Expanding the estate tax
Paring back tax preferences on pass-through businesses such as limited-liability companies
Setting up a higher capital gains tax rate for individuals making at least $1 million.
Some have reached out to the Biden administration for comment...
Thus far, there has been no response.
Some tax hikes are expected to be part of the forthcoming massive infrastructure packages that the administration hopes to get through congress (again using reconciliation).
Also tucked into that Covid relief package:
"Democrats are getting an early start on their tax-increase agenda.
They’ve tucked a trio of little-noticed tax hikes on the wealthy and big corporations into their coronavirus relief package that together are worth $60 billion.
One takes away deductions for publicly traded companies that pay top employees more than $1 million. Another provision cracks down on how multinational corporations do their taxes. A third targets how owners of unincorporated businesses account for their losses."
https://www.politico.com/news/2021/03/10/covid-relief-bill-tax-hikes-475051
The big test will come soon when Biden's handlers put their tax plan on the table for all to see.
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You may not have voted for it, but watch for it!
Yeah. If I were a billionaire I would really bitch about those hikes.
You think that will be it? That will be enough?
How can anyone answer those questions?
They are reasonable questions. I have no problem with taxing people who make over $400,000 a year, but if we are legitimately trying to pay for a $1.9 Trillion relief package and more Trillions to be spent on an infrastructure project, I question whether it will be enough. Sales taxes - like a gasoline tax are sneaky taxes on the middle class. They won't even be enough. Is it reasonable to believe that the middle class will be taxed?
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Well, good for you for being able to answer your own questions. I never studied economics, I'm not an economist and my knowledge of the American tax system is extremely limited, but I do believe that, as I said, if I were a billionaire any new taxes to be imposed would be bound to cost me, but somehow I think I would still be able to survive financially and be able to put good food on the table, have a decent roof over my head and be able to send my kids to college no matter how much Biden intends to reduce my net income.
That's because you're a decent, upstanding gentleman!!!!!!!!!!!!!!!!
You don't need to be an economist to know that taxing the rich is an easy political exercise, especially for the proxy who promised not to raise taxes on anyone earning less that $400,000 a year. Let's see how that goes.
The Trump tax cuts for individuals end in 2025. The tax cut for corporations is permanent.
If he made that promise, has he broken it?
Changes to the 2017 tax cut are all but certain.
"There are other parts of the Trump tax cuts, passed in 2017, that Biden would modify but not repeal completely. Trump cut the business tax rate from 35% to 21%. Biden would raise it, but only to 28%. There would also be a few new benefits, such as an earned-income tax credit for older workers without kids and a tax credit for child care expenses.
Will it stop there?
Not as yet.
A gas tax qualifies as breaking the promise, right?
The small tax break for middle-class individuals ends in 2025. Per Trump's tax plan so that is an increase based on his plan.
The increase in corporate taxes is well justified since that break and the break on the super rich ended up increasing the deficit.
Will it end there?
I have no idea and neither does anyone else.
No
You mean whenever a tax cut ends it equals a tax increase. I guess that is what is meant by tortured logic.
The increase in corporate taxes is well justified since that break and the break on the super rich ended up increasing the deficit.
You do know that corporate is not synonymous with individuals, wealthy or otherwise?
Nothing is permanent. Not anymore. This nation needs a restructuring. And ending Supply Side Economics is issue number one.
There aren't enough billionaires in the USA to pay for all the Dems largess and promises of free stuff. In the real world, corporations don't pay taxes, but simply pass their increased costs down the line, ultimately affecting the middle class and the poor.
gqp'ers are always telling others to do their homework for them!
In Vietnam among we Air Cavalry people there was a saying---"You can't ask if you don't know."
I can't believe you don't know what Supply Side Economics means. Your hero started it.
I meant exactly what I said. If you have a problem with it, that's on you.
Of course, do you. I didn't equate corporate with the individual. I stated that the corporate tax cut and the cut on the super-rich added to the deficit.
If you don't like the way it's worded it's not my problem.
Where does your seed say anything about paying for the relief package Vic?
Oh and WHY should they have to pay for the Infrastructure bill?
Why couldn't Biden's Treasury just make shit up like Trump's did so they can pretend that it pays for itself?
Let's see...
Nope. No tax hike for me.
The axiom that "Dems have never seen a tax they didn't like" is mostly true. This is where I often part with the Dems. They could be a little more judicious where they find their revenue. I don't see an issue with taxing the 1% more, but not everyone that owns a corporate pass through is rich either. They should do it by income here like the personal income brackets. I've also seen Dems like Buttigieg start talking about a milage tax. Once they figure the how, you'll get that on top of the gas tax.
Not so sure that it's a dem thing with the mileage tax. As the US goes more and more to electric autos/trucks the less gas will be purchased and that means less in taxes. To keep the roads maintained the money has to come from somewhere.
True, but as far as I've heard only Dems are talking about it. The only state I know that has one right now is OR and that one is opt-in with a GPS tracking device installed on the cars. Perhaps the feds will requires states to collect during plate tabs updates with an odometer reading?
I drive very little anyway. It's a mile to work and during nice days in the summer I use the scooter. LOL!
The other situation that seems to be gaining steam is the private roads which of course are toll roads.
A nice summer day where you live is a Tuesday afternoon in August.
Very true, the gas tax is what pays for just about all road construction/repairs. Gotta replace it with something. I think it was Audi that recently announced by like 2030 their entire lineup will be electric vehicles.
So has GM, Ford and Volvo.
If the ultra rich have to pay more in taxes does this mean they will have to find part time jobs to make up for it?
Increasing corporate taxes works the same way as tariffs. Consumers provide the money to pay corporate taxes and tariffs. Increasing corporate taxes is Democrats' favorite way to tax the poor. But corporate taxes won't do anything to address disparities because Democrats will also lower tariffs; that's just another race to move jobs offshore.
Estate taxes really does tax money that has already been taxed. That's a backhanded way to claw back revenue lost through tax loopholes. Dead people don't donate to Democrats so the estate is no longer of political value. Although dead people do vote for Democrats.
The only way to increase government revenue while addressing disparities is by making the income tax progressive. The current overall Federal tax code works like a flat tax; everyone is paying the same rate of tax. But there have been so many loopholes added to curry favor from political donors that the real tax rates has become regressive. The biggest obstacle for returning the overall Federal tax code to a progressive system of taxation will be trying to convince Congressional politicians to increase their own taxes.
Replacing wealthy individuals with a wealthy government wont' really accomplish much. Democrats are still promising supply-side trickle down economics. Democrats' record on trickling down public money isn't any better than the record of fat cat financiers trickling down private money. Politicians have been growing richer alongside their private sector counterparts. Keep in mind that most of the politicians are lawyers; they've been professionally trained to screw the public for their own benefit.
Will it be enough? That depends upon Democrats' populist politics. Joe Biden's proposals are populism on steroids. Democrats are promising globalist populism instead of nationalist populism; as if Democrats can buy votes offshore where they are sending jobs. Imposing political correctness is a cheap political activity; creating a bureaucracy to enforce political correctness becomes expensive. But that kind of public spending is nothing more than political smoke and mirrors that consumes taxes without allowing money to trickle down. That's Democrats' way of making poverty respectable and keeping their reliable voting base on the plantation.
Go ahead and raise taxes on corporations and those in my position, won’teffect me one si gel bot.
It would take 238 hours for a minimum wage worker in my state to make what Bezos made every second in 2020.
Please don't tell me that the rich cannot afford to pay more in taxes.
Of course they can. What gets me is the complaints about prices will rise as the cost to them will trickle down.
Hate to break the news to some but prices rose with the tax cuts.
They must have risen with Trump's tariff war as well, and at a time when people could least afford the increases.