President Biden and congressional Democrats want American families and Main Street businesses to pay the highest top tax rate in the developed world, despite the fact that small businesses have lost jobs three out of the last four months and 65 percent of Americans can’t keep up with soaring prices.
“President Biden wants to raise federal revenues by $4.2 trillion over the next 10 years by instituting ‘the highest top tax rates on individual and corporate income in the developed world.’ […] What Biden wants is borderline confiscatory taxation of corporations and wealthy individuals.
“[…] Biden’s vision demonstrates an unwillingness to learn from other countries’ examples. France tried to soak the rich under socialist president François Hollande, elected in 2012. He taxed earnings above 1 million euros at 75 percent. It was a disaster. Then-adviser Emmanuel Macron warned against the move, saying France would become ‘Cuba, without the sun!’ Some wealthy individuals moved to other countries rather than pay the tax. The international competitiveness of the French economy tanked. The government reversed course and eliminated the tax at the end of 2014.
“And it didn’t even work to raise money.”
Read the full National Review report on the Tax Foundation study here.
President Biden’s budget assumes his tax-and-spend agenda gets across the finish line. Among other tax hikes, Democrats’ agenda would:
…Shrink the U.S. economy and ship U.S. jobs overseas – making a recession all the more likely.
- The American Action Forum found that the main selling point of “Build Back Better” – “that its higher taxes to finance new spending are pro-growth – is ultimately unachievable under any plausible scenario.”
- The Tax Foundation estimates President Biden’s tax hikes would “reduce long-run GDP by 0.7 percent and eliminate 138,000 jobs.”
…Hammer Main Street businesses and working families.
- Not only would taxing unrealized gains be extremely difficult and require an expansion of the IRS, but the vast majority of Americans oppose President Biden’s scheme.
- The non-partisan Joint Committee on Taxation (JCT) found that workers will shoulder the burden of the tax hikes and over the long term,, two thirds of the corporate tax burden would be borne by lower- and middle-income taxpayers.
- The JCT also found that 25 percent of the burden of Democrats’ tax hikes would be borne by workers in slashed wages.
…Threaten family farms and businesses with a supercharged second death tax.
- A study by EY and the Family Business Estate Tax Coalition showed the tax would destroy over a million jobs, slash paychecks for workers, and shrink our economy by $100 billion over the next decade.
…Surrender economically to our foreign competitors.
- The Biden Administration’s global tax plan offers foreign countries a sweetheart deal: American companies will pay a global minimum tax rate many points higher than the 15 percent rate the Biden Administration will allow for other countries.
- This economic surrender will make Americans less competitive and will drive manufacturing, research, and investment overseas.