With Democrats securing their stranglehold over the U.S. House and Senate, President to be Joe Biden has every intention of raising your taxes and damaging the economy. His tax-and-spend ideology follows the same failed policies of the Obama years that were fraught with economic depression, high taxes and corporations leaving and heading overseas to more business-friendly nations.
“First thing I’d do is repeal those Trump tax cuts,” Biden promised voters on the campaign trail.
Perhaps the most damaging long-term tax will be his assault on the Tax Cuts & Jobs Act of 2017 that lowered corporate taxes to a competitive rate with other countries. Before the reduction, it ranked among the highest of developed nations at 35 percent. At Pres. Trump’s 21 percent, the U.S. still ranked far below China’s “preferred business” rate of 15 percent.
“The idea that we have a tax rate for corporate America at 21 percent is ridiculous. It should be 28 percent,” Biden reportedly said.
Biden’s tax plans would clearly benefit his influence-peddling son, Hunter. Hunter can ramp up the influence-peddling money train and sell the American people out to the highest bidder, most likely China. What working people need to prepare for is a depressed job market and excessive taxation.
“By the way, how many of you did really well with that $1.9 trillion tax cut,” Biden mocked an audience during a campaign stop. “Well, you did. Well, that’s good. I’m glad to see you’re doing well already. But guess what, if you elect me, you’re not going to have your — your taxes are going to be raised, not cut, if you benefited from that.”
Those words are a microcosm of what’s coming as Biden huddles with the likes of Speaker of the House Nancy Pelosi and Chuck Schumer, who is expected to become the new Senate Majority Leader.
Democrats have an unabated path to roll back the wide-sweeping gains working families enjoyed due to President Trump’s signature law. The Act brought hundreds of billions in offshore investment money back into the U.S., spurred business growth and job opportunities. Unemployment sunk to historic lows, and there were more job openings than people to fill positions, which consequently drove up wages.
Raising the corporate rate will put America at a strategic disadvantage. Expect global companies to flee to tax-friendly nations such as China (15 percent), Canada (26.8 percent), Qatar (10 percent), or simply offshore profits to places like Barbados (5.5 percent).
Even tax-heavy EU countries such as France are reducing tax liability to encourage relocation and global competitiveness. The Biden Administration is also talking about increasing the estate tax that Pres. Trump lowered to protect family farms, and Biden will target what liberals call “high earners.”
This failed policy will likely focus on raising rates on households earning $400,000. It may also roll back the increases in standard deductions that gave everyday people substantial tax relief. The current deductions stand at $12,400 for singles and married people filing separately. Married couples filing jointly deduct $24,800 or $18,650 for a head of household. Seniors can get a higher deduction. Those figures are set to increase for 2021 but are now in jeopardy for 2022 and beyond.
As Biden and the socialist-minded Democrats open the borders and increase foreign work visas, American citizens can expect a perfect storm of higher taxes, fewer jobs, and depressed wages.