With tax hikes still on the table in President Biden’s latest budget, the Wall Street Journal writes in an editorial, “[President Biden] is proposing $2.5 trillion in new taxes that would give the U.S. the highest or near-highest tax rates in the developed world.”

The U.S. already tops the list among nations for higher core inflation due to government spending from President Biden’s so-called “COVID stimulus.” 

President Biden’s tax hikes would send the U.S. to the top of the list for worst tax rates among the developed world, all while worsening inflation, slashing workers’ wages, and sending jobs and investment fleeing overseas.

CLICK HERE to read the full editorial.

Key Excerpts: 

• “The biggest jump is in taxes on capital gains, as the top combined rate would rise to 48.9 percent from 29.2 percent today. That’s a 67 percent increase in the government’s take on long-term capital investments. The new top rate would be more than 2.5 times the OECD average of 18.9 percent.”

• “Mr. Biden would also put the U.S. at the top of the noncompetitive list for personal income taxes, with multiple increases that would put the combined American rate at 57.3 percent. Compare that with 42.9% today and an average of 42.6 percent across the OECD. To borrow Mr. Biden’s favorite tax selling point is more than half of what someone earns a ‘fair’ enough ‘share’ to pay?”

• “Mr. Biden is also still claiming that ‘nobody making less than $400,000 a year will pay a penny more in federal taxes.’ Not true. Corporate taxes are paid by workers, shareholders and consumers of all incomes. Reductions in the after-tax return on capital will reduce the value of companies, which will be reflected in lower 401(k) and retirement account balances for all workers.”

• “The Tax Foundation adds that the tax increases would reduce the size of the economy over time by 0.5 percent, which is also real money for all Americans. A tax increase that returns the U.S. to the top of the global tax tables should be called the China Empowerment Act.”

KEY TAKEAWAYS:

• Despite 40-year high inflation, President Biden’s latest budget proposal includes tax hikes that hit working families and Main Street job creators hardest.
• President Biden’s tax hikes would slash family wages across income levels, while destroying at least 138,000 U.S. jobs.
• A new analysis from the San Francisco Fed found that U.S. core inflation is higher than other nations – and attributes a part of it to President Biden’s so-called “COVID stimulus.”