Despite election promises that he would not raise taxes on Americans, a new analysis conducted by the Tax Policy Center suggests that nearly 60% of taxpayers will see their incomes affected due to increased tax obligations.
The findings by the Tax Policy Center, a nonpartisan tax finance think tank, show that most of Biden’s proposed tax increases would apply to those making more than $800,000 a year. However, many middle-income families will also face tax burdens to a greater or lesser extent.
According to data from the analysis, three-quarters of households earning between $75,000 and $100,000 annually would face an additional payment in taxes under Biden’s new tax policies.
Similarly, about 69% of those earning between $100,000 and $200,000 would see their tax bills increase by at least $830 on average, while 83.7% of those earning between $200,000 and $500,000 could notice an increase of about $2,040 extra on average.
Virtually all of the wealthiest will bear the brunt of the tax increases. The report indicates that at least 99.8% of those earning between $500,000 and $1 million will pay no less than $8,810 more each year in taxes than previously.
As announced by liberal policy critics, the Biden administration’s excessive public spending, due to an unconscionable waste of federal funds, is leading the Biden administration to plan a historic tax increase that will impact the entire population directly or indirectly.
In parallel, Biden has called for a series of tax increases, including raising the corporate rate to 28% from 21%, nearly doubling the capital gains tax rate to 39.6% from 21%, restoring the top individual income tax rate to 39.6% from 37% and taxing capital gains upon death, Fox Business reported.
President Biden is implementing the first significant federal tax increase since 1993. His administration is cornered by rising government spending and thinking about the long-term economic program designed to follow up to his controversial $1.9 trillion pandemic aid bill, coupled with the more than $2 trillion infrastructure plan he intends to pass.
Democrats have long championed the narrative of an inequitable tax system to push for across-the-board tax increases, intending to expand government power to more easily impose leftist policies that can only be accomplished through a powerful government with limited resistance.
Republicans will undoubtedly generate resistance to tax increases to subsidize wasteful spending, which will test the ability of Biden and his team to convince Republicans.
Tax increases included in any broader infrastructure and jobs package are likely to involve repealing parts of President Donald Trump’s 2017 tax law. Trump’s law sought to cut taxes to give businesses and wealthy individuals oxygen, which worked as an incentive to attract new investment that translated into millions of new jobs.