Biden wants to raise taxes by $7 trillion – MishTalk

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If Democrats win the trifecta with a sweeping victory in the Senate, House and White House in November, taxes would increase by $7 trillion over 10 years.

Reports of the House Ways and Means Committee Biden’s tax hike will likely exceed $7 trillion.

I think they mean would do it will not.

Tax details

  • President Biden Quietly Pledges to Let Trump Tax Cuts Expire
  • Sending jobs and companies abroad with higher business taxes than China
  • Global Tax Accountability Allows Foreign Governments to Accept U.S. Tax Dollars
  • President Biden’s proposal to increase the top rate to 39.6 percent runs counter to small business owners who pay their business taxes through their individual tax return, despite his promise not to raise taxes on small businesses.
  • A tax on wealth you haven’t earned yet.
  • Higher energy bills and an energy-insecure America.
  • An IRS that would terrify Godzilla

A friend of mine asked when the tax increases will cause a recession. I answered never. I suspect my friend was confused about the title saying “will”, he should say “would”.

I didn’t add all those details because I don’t think it’s going to happen. However, it is a warning sign about what would happen if the Democrats won the trifecta.

Biden’s populist budget

The hill comments Biden’s populist budget marks the end of trickle-down economics

Trickle down refers to the idea that tax cuts for the wealthiest “trickle down” to the rest of us. It’s long been a popular idea in Washington, but it’s simply not true. A few years ago, the London School of Economics studied 50 years of “trickle-down” policies in 18 industrialized countries, including the United States, and found that their only result was to increase the wealth of the already rich.

So how do we achieve prosperity for the rest of us? Taxing extreme wealth and investing that income in social goods such as education, housing, food and healthcare. President Biden’s recently released federal budget plan follows that plan, putting the value of investing in American families and communities ahead of tax cuts for the wealthy.

The fiscal year 2025 budget would generate about $5.3 trillion in revenue over the next decade. That’s an increase of $388 billion compared to last year’s budget, and it all comes from fairer tax policies aimed at wealthy individuals and large corporations. Households earning less than $400,000 will see no tax increases, and many will see reductions.

The proposed budget invests $2.3 trillion in essential public services for working families while reducing the national debt by nearly $3 trillion. This is a great start to filling critical investment gaps for families and communities.

Take housing as an example. The National Low Income Housing Coalition reports a shortfall of more than 7 million affordable housing units for poor and low-income Americans. Biden is requesting $33 billion for the Housing Choice Voucher program, which currently helps more than 2 million households afford housing and would expand access to homeownership for first-time homebuyers. Your application will help support existing vouchers and add about 20,000 more.

Although much more is needed, this effort to reduce homelessness by providing access to safe, affordable housing in a tight housing market (with high rental prices and often insufficient wages) is a step in the right direction.

Typically The Hill writers aren’t crackpot liberals like the article above.

But that won’t happen unless you believe Democrats can pull off a trifecta.

Nevertheless, the budget is instructive as are the projections from the CBO and the Federal Reserve. I’ll have some comments on those projections on Sunday or Monday.

Optimism reigns and that will not happen.

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