Fox Business reported in July on the Tax Foundation’s findings if Joe Biden wins in November. The findings were grim for Americans who don’t want to be slammed with taxes. Last year, Joe Biden also said numerous times he would roll back the Trump tax cuts. Biden has changed his tune but have things really changed since the Tax Foundation’s grim report in July?
Several studies have been released poking holes in the Biden claim that not one American making under $400k would see a tax increase. With the green New Deal money grab and the healthcare money grab, how can Biden NOT raise taxes? The Hoover Institution and the American Enterprise Institute give their take on Biden’s tax plan.
The American Enterprise Institute just came out with a report that claims any American making over $137k will be taxed in a Joe Biden administration:
The conclusion in this study states that Biden’s tax proposals would raise roughly $2.8 trillion between 2021 and 2030. His proposals would primarily raise taxes on high-income households and make the tax code more progressive. Biden’s proposals would raise effective tax rates on both individuals and businesses, resulting in lower output in the first decade. His plan would reduce debt-to-GDP in the second decade, leading to a slightly higher GDP. However, in the long term, his plan would not raise enough to stabilize debt-to- GDP and would lead to a 0.18 percent smaller economy.
The Wall Street Journal Editorial Board referenced a new study out Sunday from the Hoover Institution shows the Biden economy will lead to a damaging impact on growth, job creation and household income:
A 50-page Hoover study is valuable because it examines policies for their incentive and supply-side effects rather than merely macroeconomic demand-side spending.
Overall, the authors estimate that the Biden agenda, if fully implemented, would reduce full-time equivalent employment per person by about 3%, the capital stock per person by some 15%, and real GDP per capita by more than 8%. Compared to Congressional Budget Office estimates for these variables in 2030, this means there would be 4.9 million fewer working Americans, $2.6 trillion less in GDP, and $6,500 less in median household income.
The Hoover study
Has anything changed since July? Listen to the Fox Business anchor below:
The Wall Street Journal is revealing the “hitch” in Biden’s claim that people making under $400k won’t see a tax increase:
The hitch is in his proposal to apply the Social Security payroll tax to income.
Social Security is financed by a 12.4% levy on earnings up to $137,700. Although nearly every developed country caps its pension taxes, progressives grumble that the rich don’t pay enough. Mr. Biden’s Social Security plan, analyzed this month by the progressive-leaning Urban Institute, would retain the $137,700 payroll-tax ceiling but impose the 12.4% tax on earnings above $400,000.
This “doughnut hole” would spare the upper middle class from higher taxes. But only temporarily. With each passing year, the doughnut hole shrinks. The payroll-tax ceiling already increases annually with nominal wage growth. But Mr. Biden’s $400,000 threshold isn’t indexed. This means that over about three decades, the payroll-tax ceiling would be phased out.