President Joe Biden spoke to a joint session of Congress Wednesday, touting tax increases from two initiatives as a way of “guaranteeing fairness and justice.”
“We’re creating hundreds of thousands of jobs. We’re delivering real results people can see and feel in their own lives. Opening the doors of opportunity. Guaranteeing fairness and justice,” Biden said of the items that he would invoice to many of his wealthy donors.
Biden’s first of two proposals to raise taxes stem from the American Jobs Plan, dubbed an “infrastructure” plan, which is intended to purchase items beyond what is traditionally considered infrastructure, such as paid leave, child care, caregiving, housing, kitchens for healthier school lunches, corporate tax hikes, eldercare, and research and development to address the warming of the globe.
Accordingly, the keynote tax increase in the proposal is a seven percent corporate tax increase from 21 percent to 28 percent, a rate that is three percent higher than American businesses pay to Communist China.
Other tax alterations reported in the “infrastructure” plan include:
- Raising the corporate tax rate to 28 percent from 21 percent;
- Raising taxes on those making more than $400,000 a year;
- Repealing tax cuts for income earned by American companies exporting goods and services abroad;
- Expanding the global minimum tax to 21 percent;
- Repealing the tax code to limit corporate transactions in which a U.S. company moves its headquarters abroad by becoming a subsidiary of a foreign acquirer;
- Shifting the tax burden in energy sector from fossil fuels to clean energy in the form of subsidies.
Biden also spoke about his “human infrastructure,” or American Families, plan to increase social welfare services. Those items include $109 billion for free college tuition for Dreamers, free two-year community college for all, free universal pre-K, free aid for minority-serving institutions, a free family leave program, and an expansion of the Child Tax Credit.
Little-reported but significant is Biden’s initiative to expand the death tax to include unrealized gains as sold and thus taxable with an exemption of $1 million a person.
The taxes reported to partially pay for such items include the following:
- Raising the top income-tax rate to 39.6 percent from 37 percent;
- Raising the capital gains and dividends tax to 39.6 percent from 20 percent for households making more than $1 million;
- Raising the payroll and investment taxes each by 3.8 percent — the top rates on wages and the death tax would reach 43.4 percent from 23.8 percent;
- Using the previous 3.8 percent increase to expand over other types of income currently uncovered like active income from S corporations making over $400,000;
- Adjusting the death tax to include unrealized gains as sold and thus taxable with an exemption of $1 million a person;
- Limiting the ability for real estate to be exchanged without reporting capital-gains income by capping that break at $500,000.
Both plans, combined with the partisan $1.9 trillion coronavirus package in March, stamp $6 trillion in proposed spending for Biden in his first 100 days as president.
The massive spending and tax increases associated with the plans contradict what Biden promised during his presidential campaign: bipartisan leadership. In Biden’s first 100 days, Democrats have introduced the following radical initiatives: Packing the courts, amnesty, reparations, federalized elections, D.C. statehood, and banning the Electoral College.
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