Taxes

Here's How Biden's Proposed Tax Increases Will Affect You

It seems some are just waking up to the size and scope of the president's federal tax plan.

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"The largest federal tax increase since 1942," is how The New York Times, in a front-page news article, is describing President Joe Biden's plan for the American economy.

The Times doesn't specify precisely how it is measuring the size of the tax increase—in terms of nominal or real dollars raised or as a percentage of gross domestic product. Whatever the yardstick, it is newsworthy.

One thing that made me chuckle is that it's only now—months after the inauguration—that the Times is waking up to the scale of Biden's tax increase plans and sharing the news with its readership at the top of its Sunday front page. This is so even though Biden was fairly open about the details of the plan during the campaign.

Some voices had even been warning about it in advance of the election.

"Read Joe Biden's Lips: New Taxes" was the headline on a July 2020 Wall Street Journal editorial.

"He has pledged a $4 trillion tax hike on almost all American families, which would totally collapse our rapidly improving economy," President Trump said in August 2020 at the Republican National Convention.

"Biden's plan to double the capital gains tax" was the headline over one blog post I wrote on the topic back in October 2020.

Why has reaction, at least so far, been relatively muted?

The pandemic, the Black Lives Matter protests, and the January 6 political violence all distracted from the tax issue.

The radical nature of the Democratic primary field—Sen. Elizabeth Warren (D–Mass.) and Sen. Bernie Sanders (I–Vt.) both favored a wealth tax—made Biden's tax increases, while vast, seem more moderate by comparison.

And while Biden's tax plans add up to a hefty hit overall, some of the pieces themselves seem incremental.

He'd increase the top corporate rate to 28 percent. That's more than the current 21 percent, but still less than the 35 percent that applied between 1993 and 2017.

He'd increase the top individual income tax rate to 39.6 percent. That's up from the current 37 percent, but it's a rate that applied from 1993 to 2000 and again from 2013 to 2017, so it's not exactly unknown ground.

The two most extreme aspects of the Biden tax plan each have political pitches behind them that are at least plausible. The 12.4 percent payroll tax for Social Security's Old-Age, Survivors, and Disability Insurance is capped for 2021 on a wage base of $142,800. Biden would apply the tax to income above $400,000. That, not the increase to 39.6 percent from 37 percent, would be the real hit to high-income earners in the Biden plan. The combined effect—39.6 percent plus 12.4 percent—would be that at the margin, the federal government would take 52 percent, or more than half, of dollars earned over $400,000. There's an additional Medicare tax of 3.8 percent, which would take the top federal marginal tax rate up to 55.8 percent.

To my mind, it's just on its face unjust for the federal government to take more than half of what anyone earns.

The political explanation of this by the Democrats, though, is the combination of "bring back the top individual rates that we had under Clinton and Obama, when you all did pretty well" and "it's unfair for Warren Buffett to pay a lower tax rate than his secretary," which is partially a function of the current cap on the base for the Social Security payroll tax.

The other big piece of the Biden tax increase is a plan to bring the capital gains tax rate up to the earned income tax rate. Biden campaigned on that: "I think it's about time we start rewarding work in this country, not wealth," he said. "I think it's time working families get a break and the super wealthy and big corporations pay their fair share. They're still going to be doing just fine." Toward the end of the Reagan years, 1988 to 1990, the top capital gains rate, 28 percent, and the top income tax rate, 28 percent, were one and the same, so this idea, too, isn't entirely unprecedented.

Opponents of a capital gains rate increase point out that it's partly a tax on inflation, as the government finds a way to tax homeowners or stock owners on the government's own failure to maintain a currency that is a stable store of value. They also argue that it's double taxation, as money that produces capital gains has often already been taxed once as income at either the corporate or individual level. Such taxes punish risk-taking and investment, and discourage capital formation.

The arguments about taxation are familiar at this point from being carted out each time a new presidential administration arrives and seeks to reset the rates.

Democrats argue that spending funded by the taxes will contribute to more vigorous and widely distributed growth, reducing inequality.

Republicans argue that the money is spent more wisely by individuals or firms than by politicians, that there is an injustice in a majority ganging up to take away money from hardworking people who have created value, and that the increased taxes will reduce incentives and slow growth.

The debate may feel stale, but as a political matter, it is unresolved. The recent pattern has been that Democrats overreach and raise taxes to the point where Republicans get annoyed and lower taxes. Then the cycle repeats again.

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  1. More imperative than ever to win the House back in ’22. Maybe the Senate but who knows. The populace is fickle and mail in ballots will be harvested hard.

    1. The Dems are just handing control back to the Repubs.
      Tax hikes are never popular.

      1. They are popular when they think other people are paying them.

        1. And when they can print votes up at will with no blowback.

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      2. Biden tax hikes will give way to DeSantis tax cuts

      3. That’s why they love the corporate tax. Fools don’t realize they pay it through higher costs, lower wages, and fewer jobs, or no jobs if the tax encourages business to leave the country entirely.

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    2. Don’t count your chickens. The GOP base may not be too eager to get outta bed and vote for a party that has been backstabbing them repeatedly.

      1. It’s more imperative an ever. Particularly in the primaries. We desperately need to weed out trash like Liz Cheney, Mitt Romney, etc..

        1. An important tactic in criminal analysis is to ask “Cui Bono?” or “Who Benefits?”
          Mark Thrust’s approach benefits the Democrats by splintering the Republicans.
          Assuming he’s not stupid, we have to consider who he may be working for.
          (Or just remember Reagan’s Eleventh commandment;
          “Thou shalt not speak ill of a fellow Republican.”)
          There’s no mechanism on these boards for verifying that people are who they pretend to be.

          1. They’re RINOs. Primarying them improves the party. But hey, if you want to support the next generation of Collins, Murkowski, Romney, Cheney, etc., you have fun with that.

      2. State your facts. Exactly what backstabbing has been going on?
        Examples please!
        If you mean the promise to not raise taxes on anyone making over $400,000 you are confused on the party!

        1. State your facts. Exactly what backstabbing has been going on?
          Examples please!
          If you mean the promise to not raise taxes on anyone making under $400,000 you are confused on the party!

      3. The American People may not be too eagar to get outta bed and vote for the party that caused the insurrection on January 6th either.

        I mean, come on, when you label all the responsible Republicans as stabbing you in the back … for what exactly?

        1. The people who believe what happened on the 6th was an insurrection are not going to vote republican anyway

          1. And, that, right there, is how you drive people away from the Republican party.

            Congratulations.

            I will never understand why so many people who I agreed with on so many issues all of a sudden decided to sell their souls and their ideals to a loser degenerate megalomaniac.

          2. What exactly else would you call it? They stormed the congress in an attempt to disrupt proceedings. I suppose you think CHAZ was not an insurrection either then? If you want to be consistent here …

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    5. Here’s How Biden’s Proposed Tax Increases Will Affect You It seems some are just waking up to the size and scope of the president’s federal tax plan……………MORE DETAIL.

  2. “Democrats argue that spending funded by the taxes will contribute to more vigorous and widely distributed growth, reducing inequality”

    Shouldn’t be a surprise to anyone; that is what they have campaigned on. As for the “46.6%” of Americans who pay no taxes, they are no doubt reliable Democrats and have no problem with others paying for it.

    1. With high tax rates, wealth becomes concentrated in the hands of politicians who use it to buy votes and to support a large union of government workers with generous benefits and pensions.

      With low tax rates, wealth becomes concentrated in the hands of people who create wealth by producing goods and services people value.

      You do the math on which one leads to more vigorous and widely distributed growth. Inequality I will grant them, but inequality is not a problem, it’s a sign that people still have some remaining economic freedom.

    2. What they don’t tell you is that for every $1 “you” are getting, the connected are getting $10.

      Obviously we need to do more, inequality is spiraling out of control!

  3. Somebody’s got to pay for the tens of billions in infrastructure spending Joe’s proposing with his 3 trillion dollar infrastructure spending plan.

    1. ISWYDT

      More slush funds, funding Lefty shits like WK and their full time jobs posting on the internet, as well as Govt Union pensions

    2. They’ll spend 3 trillion on infrastructure eventually, after the project budgets have ballooned to 40 trillion

    3. pretty sure these are shovel ready projects

  4. The combined effect—39.6 percent plus 12.4 percent—would be that at the margin, the federal government would take 52 percent, or more than half, of dollars earned over $400,000. There’s an additional Medicare tax of 3.8 percent, which would take the top federal marginal tax rate up to 55.8 percent.

    Ok, so, does this officially count as my “fair share”? We’re renegotiating down the road, aren’t we?

    1. No. They always want MORE.

  5. Republicans argue that the money is spent more wisely by individuals or firms than by politicians

    You mean “than by Democrats”. It’s fine for Republican politicians to spend spend spend.

    1. It’s not fine but, of course, Republicans would have to spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend spend and then set their increases on spending on autopilot for a couple decades, then write the spending off the books as essential spending that can’t be cut, and then spend spend spend more to catch up.

      1. BS, don’t trust either party to spend less.

        1. I don’t think a GOP majority congress would push massive spending packages in top of the already bloated budget.

        2. Trust has got nothing to do with it. The programs attributed to progressives at both the state and national level last longer, grow larger, and tend to morph from “nice things the government should do” to “essential spending” or “defining role of government” while conservative or GOP programs don’t or even do the opposite. Medicare and SS spending out strip defense spending 10X and are “mandatory” and this is before the ACA gets tossed on top. When it comes time to cut budgets, Medicare and SS are virtually untouchable.

          You can not trust both sides while objectively recognizing that one side is worse and pretending both sides are equally bad when it’s not true just guarantees you get voted off the island first.

  6. One thing that made me chuckle is that it’s only now—months after the inauguration—that the Times is waking up to the scale of Biden’s tax increase plans and sharing the news with its readership at the top of its Sunday front page.

    I mean reason waited until just a couple weeks before that….

  7. Also left put is corporate taxes increasing costs of goods to consumers. Think Eric would have taken this one on by now. And that pesky mileage and VAT taxes already being discussed for infrastructure.

    1. Don’t forget Financial Transaction taxes and eliminating the 401k to AGI for 6 figure earners. Holding local government hostage to “fair” housing (means section 8) on transportation grants. And then there’s Bloomberg’s federal public housing projects.

  8. If only there had been some way to avoid this back in November, . . .

    1. After Biden gets done telling minorities to use the internet (his words), he will help reason editors look up campaign websites.

      1. As long as they have the record player on for the children.

    2. Ken is 91% correct on this issue.

    3. It cracks me up that Bill Maher is now talking about taxing, spending, riots, looting and critical race theory. I went back and watched an interview with Crenshaw in the first months of Covid. Crenshaw had to keep interrupting to talk on Trumps Covid policy versus Democrats policy. Maher was obsessed (like Reason) with Trumps tweets and “what Trump said”. He could not talk about policy because the OCD was on tweets.

      1. Maher is a lightweight. He does ok on his own show, or in a friendly venue with other lightweights. When he’s around people who actually know anything, he falls apart.

      2. Maher is and has been a tool of the left and only keeps his show if he tows the party line. Now that Trump has been ousted both he and the NYT can go back to trying to appear somewhat “balanced”. It’s just a charade. If nothing else, Trump’s presidency pulled back the curtain on our popular “news” media and exposed them for the left-controlled propaganda outlets they really are.

  9. To my mind, it’s just on its face unjust for the federal government to take more than half of what anyone earns.

    “Your mind — you didn’t build that.”

  10. By “some” you mean the majority of Reason staff, right?

  11. I don’t know, the only potentially surprising thing is that Biden seems determined to keep his campaign promise to be the ultimate authoritarian. I suppose it’s possible that some are surprised given how many past presidents didn’t even bother trying and barely paid lip service to campaign promises. Let’s face it, you pay what ‘the whole’ votes for.

  12. I attended a corp. board meeting today. The CEO said that a proposed increase of 33% in the corp. tax rate has already led a lot of the company’s customers to hold up new capex plans until they see how the proposed tax shakes out. If it goes through, he predicted a stock market swoon that would take down employees’ 401k funds – even if one was making, say, $50,000 per year – which would be tantamount to a tax increase on anyone with savings.

    1. Adding 2 trillion to the national debt for an unneeded stimulus was already a tax increase via inflation on anyone who has any savings. What makes it worse is that the Fed is keeping interest rates artificially low so anyone with savings is forced into the overpriced stock or real estate markets if they try to keep up with inflation.

        1. I just bought some real estate.

          1. Did you quit ShopRite?

  13. “The pandemic, the Black Lives Matter protests, and the January 6 political violence all distracted from the tax issue.”

    More likely, the fascist cabal of democrats and coastal elite corporate officers told the compliant press to cool it until after the election.

    1. Democracy needed to be fortified.

      1. Like a fine wine.

    2. Didn’t you find it cute that the 20 minute protest in the Capitol was given the word violence while the 2 billion dollar BLM riots were not?

      1. The prog media has to be dismantled.

  14. “it’s unfair for Warren Buffett to pay a lower tax rate than his secretary,”

    This too is a blatant lie.
    They pay the same tax rates on the same type of income.
    You have to be a fascist weasel to compare a wage income tax rate to a capital gains tax rate, and completely ignore the total dollars paid.

    1. I love how people making $400K are being taxed according to Warren Buffet’s ($97 billion net worth) preferences.

      As if there’s no distance between the two.

      1. It’s hilarious to see democrats shill to curb stomp a filthy .01%ers competition.

    2. My answer to that is I agree, and both the capital gains rate and the top income tax rate should be reduced to 20% (or less). If it was good enough for the Egyptian Pharaohs, it should be enough to run the government of a free country.

  15. 55% marginal rate? 5 for me and 4 for thee?

    Let me quote the great poet George Harrison:
    “should 5 percent appear too small….
    be thankful I don’t take it all…
    cuz I’m the Taxman…. yeah, the Taxman….”

    1. It’s getting like the old Bugs Bunny cartoon:
      1 for you, 1 for me.
      2 for you, 1, 2 for me…

  16. On Wednesday in Pittsburgh, Biden will reveal his plans for trillions of dollars of new spending for infrastructure and other projects. His devotees in the national media will whoop up his proposals as the greatest thing since the New Deal, or at least since Biden’s American Rescue Plan Act a couple weeks ago.

    Once Biden fires the starting gun, a deluge of experts will descend upon cable news shows to tout the vast benefits of the proposed “investment.” There will be a barrage of econometric formulas that irrefutably prove, via 10 or 15 shaky or squirrely assumptions, that vastly increasing federal spending will multiply prosperity across the land.

    James Bovard tells it like it is. However good a proposal looks in theory, realize that the proposal is going to be implemented by politicians who only care about votes and idiots who believe central planning is superior to the free market. It never ends well.

    When the U.S. peanut program was launched in the 1930s, the federal government gave favored farmers licenses to grow peanuts and outlawed anyone else from entering the business. To maximize its controls, the USDA used aerial photography to determine if farmers planted a few more square feet than they were allotted. In 2002, Congress spent $4 billion to buy out the peanut license owners and end the program. Problem solved, right? Nope – congressmen still needed campaign contributions. In 2014, Congress created a new program that guaranteed payments far above market prices. The cost of peanut subsidies quickly approached a billion dollars a year, nearly equaling the farm value of all the peanuts grown in the U.S. Farmers dumped surplus peanuts on USDA, which dumped them on Haiti, sowing chaos in local markets. But that wasn’t a problem because Haitian peanut farmers can’t vote in U.S. elections (at least not yet).

  17. Yes, but at least he’s not mean tweeting.

  18. Social security and medicare are almost half the national budget. They are bankrupting the country and must be abolished. Increasing taxes for them is a good way to bring attention to the issue. I definitely think balancing the budget is the most important priority. It’s not fair to burden the next generation with the debt for our profligate spending. So I support these tax increases.

    What’s surprising to me is that kids today aren’t demanding an end to these programs even though they will never see a penny from them. I think it’s a winning issue for a nationalist party to challenge the woke progs, though they have to have a difficult talk with grammy and gramps.

    1. Granny and gramps paid in. To not pay them is theft.

      1. Except they didn’t. It was a pyramid scheme. And all the money was spent on stuff they approved and voted for.

        These programs must be abolished. Make up with your kids. Maybe they don’t hate you as much as you fear and won’t leave you to starve alone in the streets.

        1. Look, a promise was made – we’re going to steal your money and give it to your Grandpa and in return, when you get old we’ll steal your grandkids money and give it to you. Deal?

          Social Security money was never invested, it was spent as soon as it came in and pretending otherwise doesn’t change the fact that it was always a scam. You got scammed out of your money but pretending it wasn’t a scam allows you to scam your grandkids the same way you were scammed with a clear conscience. But scamming your grandkids doesn’t make you an innocent victim here, it just makes you complicit in the scam.

          1. The SS surplus was invested in special US government bonds. It’s sad that people say that it was “spent”. It’s no different than if you or I buy a savings bond or T Bill.

      2. Maybe. Maybe not. There is absolutely no correlation between what one pays in Medicare taxes and what one receives in benefits. If you never paid a cent in Medicare taxes you get the same benefit as everyone else.

    2. Social security is a pyramid scheme of the worst kind. Bernie Madoff wasn’t as bad, because those screwed CHOSE to trust him. I’m in my early 40s and have 0 expectation of seeing a dime of what I’m paying in, let alone getting what I paid in. I think it’s unfair to say anyone got scammed though. It’s more like they got robbed. Nobody under the age of 85 ever had the option of opting out, they were forced to “participate” under threat of violence like every single government “benefit”.
      But yes, the only thing we’re arguing right now is who is the one who’s gonna get screwed. If we cancel or severely diminish social security, the current elderly who paid in their whole working lives will get screwed. If we massively increase taxes to pay for it, current workers will get screwed by getting current level of payout for considerably higher taxes due to decades of fiscal irresponsibility and demographic/population growth trends. If we cut it further down the line out of necessity like the Greek collapse a decade ago, those workers currently paying in will get screwed. If we borrow more, eventually the bill will come due and our lenders will demand higher interest and taxes will go sky high. If we print the money to pay for it, everyone will get screwed with inflation. Printing money is the most likely outcome as it requires no backbone from elected officials whatsoever and the largely financially illiterate electorate will wrongfully blame the resulting sky high inflation on corporate greed.
      Ayn Rand warned and foresaw this about 60 years ago on her thoughts on social security specifically and the erection of the welfare state in general.

      1. Right so get on your hands and knees and beg your grandparents/parents to end these programs and release you from their death grip.

        1. Unfortunately my parents are Californian, Democrat voting socialists and actively collecting social security, so fat chance of that.

      2. Yet Ms. Rand had no problem taking advantage of the U.S. social safety net once she landed on our shores. She spoke with forked tongue, too.

        1. That doesn’t make her a hypocrite. She was FORCED to pay into it like everyone else, so she might as well collect. If she had the option to opt out and participated or voted for candidates who supported it, that would be hypocritical.
          When I’m old, I’ll take it too (assuming it still exists). And I took unemployment insurance last year when the government’s covid tyranny killed my job. It’s simply getting some of your money back that was confiscated from you without asking your consent. These programs shouldn’t exist, or at least be voluntary but choosing to collect after being FORCED to fund them is not hypocritical.

        2. Ayn Rand moved to the United States in 1926 — 40 years before Medicare started. Of all the dumbass ‘facts’ left-wingers spout about her, this one is probably the dumbest.

  19. BAHAHAHA! Can’t wait until all the 6 figure work at homes figure out they will take a big hit to the wallet from the guy they voted for.

  20. With the Fed note being able to raise rates when inflation hits with all the money printing the only way to sop up the money supply is with taxes…they elites have put themselves in a bad place..they can’t stop deficit spending to infinity but they can’t have the Fed raise rates hence the interest payments go through the roof and crowd out the “goodies.”….get used to very high taxes and easy money for a long time. And the elites will get richer and the media will defend bringing out keynsian economist morons who say “more more more”…

  21. “To my mind, it’s just on its face unjust for the federal government to take more than half of what anyone earns.”

    That’s an interesting principle you pulled straight from your ass.

    To my mind, it’s on its face unjust to lie and say that tax cuts for gazillionaires are some kind of benefit to regular people.

    If you’re so rich that you can afford whole media sectors that exist solely to do your tactical financial planning, you’re too rich. Sorry Reason, you’ll have to ask for subscriptions if the Koch brother can no longer afford you. Good luck competing in the actual marketplace.

    1. Why are you pretending these policies only affect gazillionaires?

      Is $400k/year really beyond your imagination for a normal person?

      1. Household, not person. And Tony freely admits to believing he shouldn’t have to work if he doesn’t want to.

        1. I’m talking about normal people.

          1. A family with two professionals can easily earn over $400K and be spending between $50K to $100K (after tax dollars) for child care and schooling

            1. Fucking crazy. Put the kid in public school and bank that money in an investment account on his/her behalf. I’d be pissed if my parents had wasted so much money on private school.

              1. Why would you be pissed that you actually got an education?

              2. One place people waste money on are expensive big name universities when you can get the same or better education at a good state university.

                With public vs private it is not necessarily better education in private schools. There are many variables. The parents making that money might be better off moving to a top rated school district.

                One thing is that public schools pay teachers more with better benefits so they tend to have the more experienced teachers and more with masters degrees.

                1. Public schools also tend to have more child molesters teaching because it’s almost impossible to fire unionized public employees.

              3. “…I’d be pissed if my parents had wasted so much money on private school…”

                That explains a LOT, like why you’re spending the third year in 6th grade.

              4. Public schools are still closed in many areas of CA.

                1. Except for children illegally in this country – they get in-person instruction.

              5. That was my plan, before I actually had kids. Unfortunately, public schools tend to offer a one-size-fits-all approach to education. If you have a child who falls outside a certain set of parameters, public school is a misery and the better option is to look for something private that can address your child’s needs.

                It’s really easy to raise theoretical children. Actual children are a different story. Best thing is not to be too quick to pass judgement on others’ choices unless or until you’ve faced their trials.

      2. Tony is a brain dead progtarded faggot collectivist drone. So yes, it’s beyond him. He just believes what they tell him to.

    2. I would educate you on the fact that the tax cuts went to more than just the one percent, or the fact that federal revenue went up, but you wouldn’t listen anyways.

    3. If you’re so rich that you can afford whole media sectors that exist solely to do your tactical financial planning, you’re too rich.

      Typical leftist thinking. Sorry, you’ve done too well, so we who haven’t get to take most of what you’ve earned. That’ll learn ya!

    4. “Arguing with anonymous strangers on the Internet is a sucker’s game because they almost always turn out to be—or to be indistinguishable from—self-righteous sixteen-year-olds possessing infinite amounts of free time.”

      Neal Stephenson

    5. Tony, so it’s ok that the government benefits more from your own work than you do? seriously? That’s what the 50% mark is, you know.
      If by tax cuts for gazillionaires you’re referring to the Trump tax cuts: I’m not a 1%er, I’m about a 15%er last I checked and it lowered my tax bill by a few thousands. Generally, those making less than me got a tax cut too as long as they were paying any income tax at all. The Trump tax cuts only benefiting the rich is clearly a lie if you actually look at the numbers. Second, the Trump tax cuts clearly helped in producing a vibrant economy which helps everyone (although they were irresponsible by not cutting spending with it and adding to the deficit).
      Those people that exist solely to do your tactical financial planning actually only exist because we have an insane, patchwork, completely unjust, unequal treatment under law, overly complicated tax code. When you support a loophole free flat tax, fair tax, poll tax or anything of the like you have a right to complain about armies of accountants, but not until then.
      Regarding those making over $400k now having to pay social security taxes on additional income: I hate that you are forced into social security against your will, but one thing they got right is your benefit is tied into how much you paid in. They capped the social security taxes above $140k because you don’t get any more benefit above this level of salary. That actually makes sense if you believe how much you pay in taxes should be proportional to how much benefits you receive (and if you don’t believe that, you’re a pro theft communist). This aspect of the new proposal is nothing but further theft, class warfare and punishment of productivity baked into the tax code.

      1. I don’t understand what you mean when you say government benefits. What’s government? Is this revenue going into the pockets of politicians?

        Obviously, you need a clever approach to how the money is spent, too. Taxing poor people to pay for security on oil fields is probably inefficient in a whole lot of ways. Taxing the excess wealth of the rich to pay for the basic needs of the poor, that sounds like one of the best investments imaginable.

        We have a lot of things to pay for. We have to save the species from climate change. We have to continue making it a more perfect union. We tried doing nothing but cutting taxes. Do you enjoy living in a backward shithole or might you need to bite the bullet and start investing in the 21st century?

        Penny punching rightwingers don’t have the first clue about how anything works. They just want their loot now and expect someone else to pay for their roads and bridges. It’s not honest, and it’s not sustainable.

        1. Everything you said is bullshit. You’re just another covetous prog. No one owes you because they have more.

          You should GTFO. Go to some socialist country where they buy into your Marxist garbage.

        2. Government benefits: social security, medicare, medicaid, section 8, SNAP, unemployment insurance, etc… When the government takes money from one group, gives it to another (while simultaneously buying votes with other people’s money) but actually produces nothing yet takes a cut for it’s huge inefficient, administrative overhead.
          Of course it’s going to the politicians (and the army of bureaucrats). Do you think it’s a coincidence that Washington DC is the richest area in the US despite producing absolutely nothing except red tape?
          Taxing poor people? They don’t pay federal income tax, next to no property taxes, no capital gains/dividend and consume massive amounts of government welfare benefits. They pay payroll taxes on a low amount of income and some sales taxes, that’s it. The rich consume next to no benefits and pay almost all taxes. Look it up and get your facts straight.
          And you don’t need any approach on how to spend the money, because the money is not yours to spend, you anti private property commie filth.
          Climate change? How many decades of failed apocalyptic predictions, coastal cities aren’t underwater, there’s still snow on the mountains, weather natural disasters aren’t more frequent or stronger, warming turned out way way way lower than predictions, etc… does it take to convince you it’s at best way overstated if not an outright power grab sham?
          Yeah, Trump cut taxes and it lead to the strongest economy in half a century (till the leftist governors and mayors decided to shut down the economy in a coordinated fashion over a not very dangerous strain of the cold).
          Backwards 3rd world shithole? Have you been anywhere outside the US? Even relatively wealthy western Europe doesn’t even compare to the standards of living in the US. If you’re in say California or New York, my apologies, yes, it is a 3rd world shithole but most of the USA isn’t.
          Invest in the 21st century? Is that code for go back to centrally planned communism that failed miserably and devolved into humanitarian disasters and despotism in dozens of different countries in the 20th century?
          FYI, roads and bridges are a drop in the bucket compared to overall government spending. Biden’s proposal is a leftist slush fund with only about a 3rd earmarked for infrastructure (which will almost inevitably turn out to be infamously not shovel ready either, like Obama’s).
          Provide some stats, facts, historical evidence, logical arguments or anything of substance to back up your claims, but don’t just make shit up.

        3. Sorry, I misread your question about benefits. Yes, by definition if the government takes more than 50% of your income as taxes they benefit more than you for your own work that they had no hand in whatsoever. Of course they benefit. Every tax dollar taken from you is a dollar they get to spend on something they want that doesn’t benefit you and is totally different than what you’d spend it on if you got to keep that dollar. Nobody in their right mind gives the government money without the threat of violence for not paying taxes.
          Some assholes (such as yourself) are fine with other people getting robbed by the government (as long as it’s not you) because you’re a selfish, amoral jackass and a bitter class warrior. When the government takes 60% of your income or 10s if not 100s of thousands of dollars from you every year, get back to me about your thoughts on high levels of taxation. Until then, your opinion is biased and thus invalid because you have no skin in the game.

  22. Here are all the facts Biden got wrong in his first press conference:
    https://www.factcheck.org/2021/03/factchecking-bidens-first-press-conference/

    Remember when this was called “lying” about two months ago?

  23. “”The largest federal tax increase since 1942,” is how The New York Times, in a front-page news article, is describing President Joe Biden’s plan for the American economy.”

    And they consider that a good thing.

  24. “Republicans argue that the money is spent more wisely by individuals or firms than by politicians, that there is an injustice in a majority ganging up to take away money from hardworking people who have created value, and that the increased taxes will reduce incentives and slow growth.”

    I’m going to need a citation for this one. Which Republicans are arguing this?

    The sad reality is that they probably need to increase these taxes while dramatically reducing spending. Something that will never happen now that extreme deficit spending is now the accepted norm.

    1. In something like 100 years of Keynesian government policy, they have never reduced spending.

    2. “Which Republicans are arguing this?”

      Pretty much any Republican (and probably a lot of Democrats) who aren’t socialists.

  25. That picture presumes Biden is coherent enough to understand his own proposals.

  26. How much of someone’s labor is the governments fair share?

      1. How much of the government’s contribution to your local road paving, storm water runoff control, roof for the school or senior center & other little things like that — using your zero as the basis — is a fair share from them?

  27. “Here’s How Biden’s Proposed Tax Increases Will Affect You”

    Unless you’re pulling in hundreds of thousands of dollars this year, the answer to the question is the tax increases will help pay for your health insurance premiums.

    And there’s this:

    AT&T lobbied aggressively in favor of the 2017 Trump tax cuts, promising to create 7,000 new jobs and invest $1bn in capital expenditures if it passed. AT&T saved an estimated $21bn when the tax cuts passed and the company saved an estimated $3bn annually due to the lower corporate tax rate from 35% to 21%. Since the tax cuts, AT&T eliminated more than 42,000 jobs even before the first retail store closures in June 2020 went into effect.

    https://www.theguardian.com/business/2021/mar/30/at-and-t-tax-cut-job-layoffs-store-closed

    1. How many more jobs would have been eliminated if they were paying higher taxes?

      1. Don’t bother; he brags about being in gov’t schools just up-thread. Thinking is not one of the things he’s learning.

    2. I guess their retail store drones either couldn’t be bothered to put down their phones to help customers, or couldn’t compete with the company’s own website, or couldn’t convince people to buy those $1,100 iPhones, or couldn’t be re-trained to climb up 300 foot cell towers to deploy new 5G equipment.

    3. A new EPI.org report details how the top 0.1% have increased their annual wages in recent decades by staggering levels, while the bottom 90% have seen their wages redistributed upwards―frequently to the very highest 1.0% and 0.1%.

      In the four decades since inequality started growing, 1979 through 2019, working people who make up “the bottom 90%” saw annual wages grow by just 26% throughout that entire period―from $30,880 in 1979 to just $38,923 in 2019.

      Meanwhile, the top 1% saw their wages grow by 160%. And wages for the tippy-top 0.1%―the very highest earners among us―saw their annual wages increase by an astounding 345.2%―from $649,725 to nearly $2.9 million.

      One year into the pandemic, Americans for Tax Fairness released a new report detailing the extraordinary wealth gains of America’s 657 billionaires. They are 45% wealthier today than a year ago and there are 43 newly minted billionaires since the pandemic began. At the same time, tens of millions of Americans have lost work and income, while millions have fallen into poverty and struggle to afford basic needs like housing and food, through no fault of their own.

  28. Democrats argue that spending funded by the taxes will contribute to more vigorous and widely distributed growth, reducing inequality.

    Get the fuck out of here with that shit.

    1. Apparently they forgot the 1970s-there will be nowhere to go except inflation and higher taxes to pay off the Covid stimulus plus the GND and whatever other free shit they’re promising. Of course, most democrats were either born well after that, or have no memory of it because they were too young. Joe Biden was around then but knows that as long as he plays Santa Claus, it’s all good.

  29. One thing that made me chuckle is that it’s only now—months after the inauguration—that Reason is waking up to the scale of Biden’s all around rampant statism and sharing the news with its readership.

    1. Biden went left for the Democratic nomination then centrist for the POTUS race. Now we know he’s a lot closer to the far left guy from the Democratic race than the moderate guy running for POTUS.

  30. Democrats can easily grab billions of tax dollars funding illegal unconstitutional programs like closing Guantanamo, removing unconstitutional practices from Fusion Centers in every state and overturning Bush’s illegal domestic spying programs.

    These programs actually make us less safe. Using a needle-in-the-haystack metaphor, it makes the haystack of suspects larger and harder to find real bad guys. Since 9/11, some state Fusion Centers have watchlisted African-American college students attending all-black colleges, LGBT groups, environmental groups, gun rights groups, etc – with no evidence of any wrongdoing whatsoever.

    Constitutional-government is limited small government. Democrats win simply by following their constitutional Oath of Office and ending illegal practices.

  31. There’s an additional Medicare tax of 3.8 percent, which would take the top federal marginal tax rate up to 55.8 percent

    And then if you live in California and make over $400K, add in another 11-12%, for a top marginal rate of 67-68%. That’s nuts.

  32. ” The 12.4 percent payroll tax for Social Security…. is capped for 2021 on a wage base of $142,800. Biden would apply the tax to INCOME above $400,000.”

    Apply to income? All income with an I? Or just wages? It makes a big difference in effect and in principle

  33. A fact from 8 years ago. Cities that are bankrupt can and did, back in the olden days, go into bankruptcy. This means that NYC, and LA (the biggest cities that are collapsed and broke) should’ve fell somewhere around 2017-2018. Breaking news for Federal taxpayers. Let it be said out loud and let’s call it infrastructure.

    1. -Let the word “bailouts” be said out loud

    2. Please provide accurate & identifiable statistical evidence & sources for NYC & LA’s collapse & broke-ness.

  34. “Let’s reward work, not wealth”. Okay, why don’t we drop tax rates on workers to the capital gains rate?

  35. “it’s unfair for Warren Buffett to pay a lower tax rate than his secretary,”

    Then lower the tax rate for the secretary.

  36. Republicans: borrow and spend
    Democrats: tax, borrow, and spend

    Yay.

  37. The combined effect—39.6 percent plus 12.4 percent—would be that at the margin, the federal government would take 52 percent, or more than half, of dollars earned over $400,000. There’s an additional Medicare tax of 3.8 percent, which would take the top federal marginal tax rate up to 55.8 percent.

    But wait there is more, if you are in a high tax state and pay 11 or 12%. Yikes

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