Taxes

Democrats Try To Hide a $3 Trillion Tax Increase From Voters

The plan would make a liar out of Biden on a level reminiscent of George H.W. Bush's betrayal of his "read my lips" tax pledge.

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Explaining a newly leaked House Ways and Means Committee plan to raise taxes by $3,000,000,000,000, a Wall Street Journal news article reports, "Rep. Richard Neal (D., Mass.), the committee chairman, has said that detailing tax-increase plans too soon can give too much time for opposition to build."

Neal had explained his reticence to The New York Times in an interview by comparing his behavior to a man trying to seduce a woman into marriage, postponing full disclosure until the wedding guests are seated and the bride has been walked down the aisle. "I'm likely to hold off on the pay-fors until we are at the altar," Neal said.

Legislators with more respect for the deliberative process than Neal has may want to dash for the chapel exit before it's too late. What does it tell you about the Democratic leadership's view of the American public that they need to keep their plans secret until the last minute, for fear that the public might figure out what they are doing? Imagine how it would feel to be engaged to Neal, without knowing precisely what bad news he's planning to dump on you once the wedding ceremony is underway.

The details that have escaped so far make it easy to understand why Neal was so eager to keep them hidden from the public.

The most dismaying aspect is the brazenness with which it violates President Joe Biden's repeated promise not to raise taxes on anyone earning less than $400,000 a year. As recently as September 3, Biden said, "Here's the thing you need to know: We're going to deliver these investments without raising taxes one cent on anyone making less than $400,000 a year." He's been making that claim over and over again: A June 28 op-ed: "Critically, we are going to get all of this done without raising taxes one single cent on Americans who earn less than $400,000 a year."

The details of the Neal plan, if implemented, would make a liar out of Biden on a level reminiscent of George H.W. Bush's betrayal of his "read my lips" tax pledge.

The Neal document "suggests increasing the tax rate for tobacco products and imposing a tax on other products that use nicotine, such as e-cigarettes," the Times reports. Will cigarette buyers be asked at the cash register whether their income is above or below $400,000 a year? Or do the "one single cent" and "anyone" pledges have secret exceptions for smokers?

Likewise, the Journal reports that in the plan Neal was so understandably reluctant to release, "The top rate would increase to 39.6% from 37%, with that top bracket starting at $400,000 for individuals and $450,000 for married couples." So the "anyone making less than $400,000 a year" category has an exception for people married to someone earning $400,000 a year: for those spouses, the tax increase kicks in once they earn a mere $50,000.

The plan Neal wanted to keep hidden as long as possible also reportedly includes an increase in the corporate income tax rate, to 26.5 percent from 21 percent. Who pays the corporate income tax? Shareholders, including shareholders earning less than $400,000 a year. The Urban Institute and Brookings Institution Tax Policy Center—a center-left research group, not the Club for Growth or Americans for Tax Reform—notes that corporate tax increases also affect workers: "their wages and other compensation, fall."

So would Biden veto this tax increase on the grounds that it breaks his promise? The press quotes a White House spokesman, Andrew Bates, claiming that, as the Times paraphrased it, "the draft outline adhered to Mr. Biden's pledge to avoid raising taxes on Americans who make less than $400,000."

The president who insisted that the American retreat from Afghanistan was an "extraordinary success" now is going to try to claim that a tax increase on Americans making less than $400,000 is not that. No wonder Neal has been trying to keep the plan a secret for as long as possible.

With Obamacare, House Speaker Nancy Pelosi (D–Calif.) said, "We have to pass the bill so that you can find out what is in it." The voters fired Pelosi as Speaker and didn't reinstall her for another eight years. George H.W. Bush was also punished at the polls for breaking his tax pledge. Keeping a tax or health care plan secret from the voters may work long enough to get it passed into law. That only postpones the reckoning. When politicians reach deeper into people's paychecks, the voters eventually do have a way of finding out and making their displeasure known.

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  2. “Rep. Richard Neal (D., Mass.), the committee chairman, has said that detailing tax-increase plans too soon can give too much time for opposition to build.”

    Fuck the American people. We’ve got midterms coming up next year!

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    2. It is not likely that all of the Biden Administration budget proposals will be enacted. The “taxation of high-income taxpayers and close loopholes” section of the Biden Administration budget is probably the least likely to survive intact. However, even if the tax increases in the Biden Administration budget were to be enacted in their entirety, it would only be a slight reversal for the winning class in the tax-code war.
      To put the Biden Administration budget tax proposals in context of the tax-code class war, consider that the proposed total increase in taxes is estimated to bring in $754.78 billion over the 2022-2031 ten-year period. That would be only 0.25% of the projected 2022-2031 GDP of $290.37 trillion. Even if the entire $4.5 trillion proposal was enacted, that would amount to only 1.55% of 2022-2031 GDP $290.37 billion. In comparison, the reduction in Federal corporate income taxes since the 1950s alone is about 5% of GDP, and that does not count the other aspects of the victories by winning class in the tax-code war involving personal income and estate taxes…” https://seekingalpha.com/article/4451687

    3. I’d also ask how can a government claim to have the consent of the governed when they are hiding things, intentionally, from the governed.

      Nothing can be agreed to legitimately if one side is blatantly hiding info from the other side.

      Would he accept anybody doing that to him personally?

  3. What does it tell you about the Democratic leadership’s view of the American public that they need to keep their plans secret until the last minute, for fear that the public might figure out what they are doing?

    And what does it say about Neal that he thinks “you know – they way you’re not gonna tell your fiancé you have syphilis and three ex-wives until you whisper it in her ear at the altar because you know that’s the only way you can manipulate her into having to accept it?” is a reasonable, “this-is-going-to-appeal-to-Mr.-and-Mrs.-Normal” explanation of his behavior?

    1. I’m not sure if his goal is to come across as the sleaziest man on Earth…but he managed to pull it off with amazing gusto.

    2. In one fell swoop he’s not only given creeps to the 50% who is opposed to him politically, but managed to alienate at least 50% of his constituency [those who identify as women at least]. And at least a majority of those who actually care about getting laid anytime soon must also repudiate this asshole.

      With one rare honest comment….

    3. “What does it tell you about the Democratic leadership’s view of the American public ”

      To Ira Stoll and people in general – surely you don’t believe this is a new thing – maybe I’m showing may age a bit, but what was it – Pelosi’s 2010 statement about ObamaCare: “We have to pass the bill so that you can find out what is in it, away from the fog of the controversy.”

      This is not new – if they don’t release the details – opponents won’t have time to raise objections until it’s too late!! Gotta love how democrats work on the sly…

  4. The most dismaying aspect is the brazenness with which it violates President Joe Biden’s repeated promise not to raise taxes on anyone earning less than $400,000 a year.

    Just like vaccine mandates.

  5. Imagine how it would feel to be engaged to Neal, without knowing precisely what bad news he’s planning to dump on you once the wedding ceremony is underway.

    Asked about his comments, Mrs. Neal simply put her fingers up about two inches apart.

  6. Who pays the corporate income tax? Shareholders, including shareholders earning less than $400,000 a year.

    HUH????

    1. I know. If the cost of business goes up, that simply gets passed on to consumers. Or will the filthy rich business owners pay out of their vaults of gold coins polished by slave child labor?

      1. Of course, they will…they’re givers…

    2. According to the CBO:

      A corporation may write its check to the Internal Revenue Service for payment of the corporate income tax, but that money must come from somewhere: from reduced returns to investors in the company, lower wages to its workers, or higher prices that
      consumers pay for the products the company produces.

      Although economists are far from a consensus about exactly
      who bears how much of the burden of the corporate income tax, the existing studies highlight the significant types of economic mechanisms as well as the empirical estimates necessary for further quantifying the burdens. CBO’s review of the studies
      yields the following conclusions:

      o The short-term burden of the corporate tax probably falls on
      stockholders or investors in general, but may fall on some more than on others, because not all investments are taxed at the same rate.

      o In the very long term, the burden is likely to be shifted in part to
      labor, if the corporate tax dampens capital accumulation.

  7. Democrats don’t care about anyone making less than $400,000 per year. Their true base consists of people whose net worths can fluctuate by $400,000,000 or more in a single day.

    So yeah, whatever, maybe Biden lied. But as long as Democratic control in Washington DC means billionaire wealth keeps skyrocketing, we Koch / Reason libertarians are getting exactly what we voted for.

    #LibertariansForBiden

    1. The mask is slipping a bit, buddy. Try a few hits of Nitrous, or vigorously bludgeon a wall with your head to get in the right mindset.

  8. Biden, being unlikely to finish his first term, ain’t running for a second. This is helpful in understanding why he’s so brazen.

    1. Also helpful in understanding the otherwise valid criticism of sending your VP half way around the world for the kickoff to the withdrawal. They are keeping her face out of it, hands clean, and plausible deniability. If they’d even planned for success, they’d have had her standing there in her letter sweater and pompoms to share the glory and pave the next two terms.

      That said, they can stack the heaping pile of dogshit onto Biden, and then dispose of him like a spent dogpoop bag, clean hands, and no retort for the competition other than to blame the befuddled ex.

  9. Let me beat the clever ones to the punch.

    WEEZEN WUZ MEAN TO TWUMP DAY WOTED FOW BIDEN DAY WANTED THIS!! WAAAHHHH!

    There. Now buckleup, JesseAz, R Mac, Mother’s Lament and all the other clever ones have nothing to say.

    1. Should have been DIS not THIS.

      I’m seriously slacking.

      1. You’re seriously stupid, but we already know it screetch.

        1. You make Sevo look intelligent.

          1. You make Joe Biden look intelligent

            1. Damn.

              You going to put up with that, sarc?

            2. Too far man. Well….

          2. I just wish this place had better trolls.

            1. That was really cringy, wasn’t it?

            2. I truly believe some of them [Tony/aka “Raspberry Dinners”] are straw men, only here to be easily pilloried to demonstrate the stupidity of their beliefs.

              1. OBL is a legit wizard when he’s on, still makes me chuckle when he’s not. Most of the rest are too stupid to be funny. Trolling requires a higher level of intelligence than most of them possess.

            3. I just mute the obvious one’s and move on – life’s to short to deal with morons who only want to stir the pot – then stand back and watch…

          3. You make Sevo look intelligent.

            So do you

    2. Just because you mock the argument doesn’t make it legitimate. Actually, the mocking of it makes clear that’s the only argument you have, which ironically helps support the argument.

    3. “I’m the only true libritarian, that’s why I support all bidens tax increases and mandates, and all of those who think that Biden shouldn’t have totalitarian power are trump dick suckers. Wow I am so smart and clever, it’s no surprise that I have a wife who loves me and no cunt rag children, now off to the bar… Where’s my keys.” Scarcasmic

    4. So, do YOU, Sarcasmic, have any issue with this?

      Not “Well, I’m going to beat people to the punch”. Do YOU find this OK?

    5. “WEEZEN WUZ MEAN TO TWUMP DAY WOTED FOW BIDEN DAY WANTED THIS!! WAAAHHHH!”

      Does anyone seriously doubt now that Sqrlsy is sarcasmic?

    6. It was patently obvious that they were going to increase taxes on the middle class from the day he got nominated.

      He literally said he would try to repeal the 2017 tax bill.

      This was pointed out multiple times in the comments, and I’m pretty sure Reason had at least one article on it (although it probably did have some stupid “but Trump” in it because god forbid).

  10. “the draft outline adhered to Mr. Biden’s pledge to avoid raising ONE KIND of TAX on Americans who make less than $400,000.”

    FTFY lying liars in Congress and the Biden Admin.

    1. I am sure Senile Joe’s supporters like jeffsarc and mollybitch will be telling us how we need this to help pay for infrastructure. 3..2..1..

      1. Please, tell us more about what the voices in your head are saying. Inquiring minds want to know.

        1. I recall owning you with that bit quite a while ago. It appears imitation is a sincere form of flattery.

        2. Another one of your well reasoned political views?

          1. I don’t say my views. I let people like you make up what I think and then watch you argue against it.

            1. It’s funny that you think that’s what you are doing.

              1. Self awareness is not his strong suit. Nor is comedy. Nor is cooking. Nor is parenting.

                I actually don’t know what he is good at besides strawman arguments.

                1. I bet not too many people can outdrink him, and he’s a capable troll.

                  sarcasmic
                  September.10.2021 at 12:14 pm
                  I stir shit up. So what.

        3. As he posts shitty strawman above lol. So self unaware.

  11. 421 days to midterms

    1. Only 20 Days Until The Fair!!

      https://www.fryeburgfair.org/

      Can’t wait. Who’s going on the Zipper with me?!?

      1. Like anyone here would do that ride. Bunch of Trump-loving pussies probably think the Ferris Wheel is scary.

      2. Kielbasa wrapped with bacon, on a stick! Deep fried Twinkies!

        C’mon y’all! Have to day something mean about me! What you got about the fair?

        1. *say*

          lest the pedants say YOU MISSPELLED SOMETHING NEENER NEENER NANNY BOO BOO!

          1. I’m actually worried about you, sarc.

            1. Hmmm…he’s posted and replied to himself four times in succession. It’s certainly equivalent to asking oneself questions and answering them.

              1. He’s definitely had too much caffeine today, if anything.

              2. He’s been on a bender since Afghanistan, and is getting muted on account or being a vapid, sobbing twat.

                1. Just another #LiberalsPostingTheirLs

    2. Yeah, nothing beats re-arranging deck chairs on the Titanic.

      1. Yup, laughed out loud on that one. Cheers!

  12. The details of the Neal plan, if implemented, would make a liar out of Biden on a level reminiscent of George H.W. Bush’s betrayal of his “read my lips” tax pledge.

    You can’t “make a liar” out of someone who already is. Biden has been habitually lying for decades; it is questionable whether any truth ever passes his lips.

    GWH Bush was a despicable, war mongering, authoritarian a–hole, but he was not a habitual liar.

    1. You also can’t make a liar out of someone who fucking told you he was going to hose people.

  13. “The details that have escaped so far make it easy to understand why Neal was so eager to keep them hidden from the public.”

    Major OPSEC failure. Loose lips sink tax hikes.

  14. consumers pay corporate taxes.

    1. Yeah, but don’t be concered, Powell said inflation is only temporary and nothing to worry about.

  15. Let’s raise taxes to provide more money to a government that has proven to be fiscally insane.

  16. No one could have seen this coming. Wasn’t like it was outlined on Biden’s website, Californias tax code, or anything.

    White nationalists like Larry Elder are a bigger threat to this country than mandates, bans, fees, hyperinflation, food shortages, packing SCOTUS, central planning and abolishing private property. Geez, get with the program.

    1. Are you a parody on OBL [who is himself of parody]?

    2. Larry Elder is an incredibly progressive individual, putting the blackface on white supremacy. He’ll simultaneously run the state of California while also being a bellhop.

      /sarc

  17. Of course if it is truly accurate that 51% of Americans have $0 federal tax liability [yes, I know, they pay sales tax] what do they care? They can vote for politicians who promise them the fucking moon and it won’t cost them anything. And of course there are all t hose virtuous souls who do pay taxes but love nothing more than expressing their virtue at the voting booth.

    1. Most people pay virtually nothing in federal taxes outside of income and income-based FICA taxes.

      In 2020, 60.6% of tax units had Zero or Negative Federal Income Tax Liability. Further, 43.3% of tax units had zero or negative sum of income tax and payroll tax liability. And even further, 20.5% of tax units paid neither income nor payroll taxes.

      “But they pay other taxes!” Sure, but probably barely…

      Federal gas excise tax, federal excise taxes on tobacco products, and federal excise taxes on alcohol are probably the primary federal taxes that individuals pay (that aren’t income taxes). Fewer people might pa things like excise tax on airline tickets, or on firearms, etc.

      Federal excise tax on cigarettes is $2.11 per pack for large cigarettes ($1.01 for small). A two-pack a day smoker pays $1540, a pack-a-week smoker pays about $110. Among smokers, the mean number of cigarettes smoked per day is about 14.5, or about 265 packs per year, so $558 per year. Of course, only about 14% of people in the US smoke regularly.

      Federal gas tax is 18.4 cents pert gallon, so someone using 1000 gallons per year (i.e., driving 25K miles in a car getting 25MPG) will pay $184 in federal gas taxes. The average per capita consumption of gasoline is about 1.15 gallons per day in the US, so about $77.25 per year in federal gas excise taxes.

      Alcohol taxes are harder to work out because the tax varies depending on the type of alcohol be it beer, still wine, sparkling wine, hard cider, or distilled spirits and the alcohol content (proof).
      But it’s something close to about 21 cents per ounce of pure alcoholic content of spirits, 10 cents per ounce of alcohol of beer, and eight cents per ounce of alcohol in wine. Note that this is not per ounce of beer or wine or spirits, but per ounce of alcohol. A 12oz can of 6% ABV beer has about 0.75oz of alcohol, so a tax of about 7.5 cents. A hard-drinking man drinking a case (24 cans) of beer every day would be paying about $657 every year in federal excise taxes, someone enjoying 3 beers each on Friday and Saturday night would pay about $24.

      Average beer consumption per capita in US is about 26 gallons This is about 288 cans per year, so about $22.

      A person buying a $500 Glock would pay $50 in federal excise taxes, but how many handguns guns will an average person buy in a year?

  18. Even if these new taxes raise as much as the Democrats claim–and they won’t–it won’t even make a dent in the debt they plan to ring up. If anything, it will be like trying to put out a fire by pouring gasoline on it. “Why, look at all this extra money we have now! Let’s spend it!”

    1. Agree, but does anyone have a solution to this? Sure, we can vote but that isn’t enough. And our politicians, who like to serve themselves for life, aren’t about to do anything different.

      1. “Fuck you, cut spending” ?

        1. I’ve heard that somewhere before……

  19. Holy shit, it’s like he’s following the Democratic Party Platform or somethingsomethingsomething got what you fucking shilled for.

    It is delightful to see Reason staff brought to reason.

  20. When push comes to shove, they will just say “Biden meant no increase in income taxes. He also didn’t say that we wouldn’t impose a new payroll tax to pay for XYZ, or maybe a federal property tax, or maybe a federal car registration tax, or maybe…”

    At that point most news organizations and folks will just to “whoop-de-doo, he didn’t really lie…nothing to see here” and just move on.

  21. Well, it’s confirmed…..the DNC has now not just anti American but are in-your-face full blown criminals with a penchant for intense lying…….Maybe they think we’re Aussies with a new zip code….?????

  22. Well, yes they’re lying. It’s what they do.

  23. The authoritarian parties (Democrats and Republicans) boast and elevate the amount of support they have all the time, but deep down they know that they are frauds and do not have the level of support they claim. You can tell because they hide the truth, lie, steal and cheat to achieve their nefarious goals.

    It’s time that the liberty minded people come together and cast out the authoritarian parties (Democrats and Republicans). Stop believing the orchestrated turmoil the authoritarian parties (Democrats and Republicans) use to divide us so they can maintain power.

    Every election cycle is sold as the most important election in our lifetime and we must pick one of the authoritarian parties (Democrats and Republicans) candidate. The truth is that the authoritarian parties (Democrats and Republicans) are mostly the same and both want to take away our individual liberties.

    1. And the red-blue canard is the life blood of the grift.

    2. What they have is a level of indifference correlated to rhe amount of leisure the voting masses possess.
      Happy hogs don’t rock the pleasure boat.

  24. trying to HIDE a tax? say it ain’t so pa.

    those lefty dickheads require subterfuge for ALL their shitty hi-jinks. as soon as the california righties figure out the game with ballot harvesting that will be outlawed

  25. Of course, the people that Neal, et al., are really trying to hide the tax increases from are not typical American voters, who broadly support plans to repeal Trump’s tax cuts and increase taxes on the wealthy, but rather lobbyists, who are eager to write scathing reports about the plan so that they can line their pockets with cash from industry execs and wealthy political donors.

    A top marginal tax rate of 39.6%? Say it ain’t so! Married couples earning more than $450k might get taxed more? Gosh, what will the working class do? And citing the disproportionate impact of excise taxes on people who don’t make a lot to begin with is kind of, ahem, rich. If poor people stop smoking because it becomes too expensive, well – that’s a good thing, right? More economic production, longer lives, fewer healthcare costs, etc., to go around.

    Anyone who has been following the political press during the first months of the Biden term can understand why they’re trying to hammer out the details in private. None of this is a red line. A lot of horse-trading has yet to happen. And Democratic leadership would rather have the headlines be driven by a single, polished plan, released after all of that intraparty deliberation has been done, than have a series of stories about how this Senator won’t accept that tax, etc., which has characterized so much of the Democratic agenda to date.

  26. “So would Biden veto this tax increase on the grounds that it breaks his promise?”

    Heck no. Joe! will blame it all on Trump, climate change, the unvaxxed, imaginary friends, and anything else handy. The press will give him cover, deflect blame, and attack anyone who dares object.

  27. So the Big Lie of Biden is that there will be a tax hike on a drug that kills 8 million a year, 480,000 in the US?
    And that if a household has a husband who makes $400,000 and a wife who makes $50,000 they will, with a combined income of $450,000 pay an extra $2600 a year in taxes?
    That is the proof that Biden is lying? And the 3 trillion is over 10 years, so 300 billion a year increase in taxes for both wealth individuals (whose tax rate will rise an astounding 2.6%) and corporations will pay 26% after the largest have been actually paying 3.4%? ”
    55 Corporations Paid $0 in Federal Taxes on 2020 Profitshttps://itep.org › 55-profitable-corporations-zero-corpo…
    Apr 2, 2021 — The statutory federal tax rate for corporate profits is 21 percent. The 55 corporations would have paid a collective total of $8.5 billion for 2020″

    That’s it: I am outraged….imagine taxing the most dangerous drug in the world! Shame on you, Joe Biden! And imagine forcing a middle class family making $450,000 to pay and extra $2600 and forcing corporations which now pay 3.4% to pay more.

    And then trying to hide the 300 billion a year increase, when they would repeal some of the Trump tax cuts which gave 2.3 trillion to the richest Americans: So this will be 700 billion more than before the tax cuts for the rich, or 70 billion a year! Outrage! And for what? to build roads and bridges, take care of children and the elderly, develop cheap clean energy and invest in healthcare and education which always more than pay for themselves.
    The Trump tax cuts (like the Bush before) were advertised as raising more revenue that they cost, but in fact they did not and the national debt under Trump, who vowed to eliminate the debt, rose from 20 trillion to 28 trillion due to increased government spending (on our bloated military, among other things) and huge losses in revenue, due to the Big Lie that cutting taxes for the riches increases revenue, which was proved false with Reagan, Bush II, and now Trump.
    But Reason only cares to worry about how to protect the wealth of the rich….and so the big picture must be pared down to the grave sin of raising taxes on a drug that kills 8 million a year and a tax increase of 0.57% on a family that makes $450,000.

    1. It’s just his latest lie/fuckup. More to come.

    2. If you think SleepyJoe needs more money, you are free to send some of yours.
      Keep me out of it.

    3. They actually did increase revenue, as shown here: https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762

      If you think that any tax increase is going to stay with just the wealthy, let me introduce you to the reasoning behind the 16th amendment (hint, there aren’t enough rich people to pay).

      And as always, the answer is to cut spending.

  28. How Gov-Guns *steal* wealth…
    Oh; lookie there….
    EXACTLY how armed bank robbers do, the secret plans, the armed theft.

    Work HARDER ‘Slaves’ the Party-of-Slavery needs MORE ?free? stuff…

  29. Liberal friends say”well, someone has to pay for all our services”. Except we don’t want them either. Boot heel Biden and his minions are going choke on spending and debt, but long after we do. The fuckers.

  30. They say they want a 39.6% top rate, with a 3% “surtax” for the highest group.

    Isn’t that just a 42.6% top rate? What the hell is a “surtax”?

  31. Thanks for your beyond belief blogs stuff.,Horse jumps for sale

  32. Stop lying about Bush Senior!

    He promised “no new taxes”. He did _not_ promise “not to raise the rates of existing taxes”. He kept his promise to the letter, since he did not help create any new taxes on items previously un-taxed. This is better than most politicians, although this is a low bar.

    It is outrageous that he is described and remembered as breaking his promise. Condemn Bush Senior for his imperialism and warmongering instead.

  33. Reason, still glad you backed this guy over Trump?

  34. Biden and the Democrats LIED on tax increases.

  35. Oh, these taxes, who even likes to pay them? That’s why we can’t live without taxes at all, ahah? I am currently engaged in trading on the stock exchange with fxcess.com and you know, I like everything so much, for the first time I met a broker who would suit me on all fronts and accounts. If you are looking for a broker, then I definitely advise you!

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