The Tax Burden Of Biden

On Tax Day, Here’s How Biden Will Only Make Americans’ Tax Burden Worse

BIDEN’S TAX HIKES HURT ALL AMERICANS

• Today marks Tax Day, a blaring reminder that Biden’s proposals would raise taxes on Americans of all income levels.
• Biden’s latest budget proposal includes 36 tax hikes totaling “$2.5 trillion in new or increased taxes.”
• Not only will Biden’s outright tax hikes hurt American families, but Biden’s hidden tax of inflation has already cost families an additional $3,500 in 2021 and will cost families an extra $5,200 this year.
• Biden’s proposed tax increases would give the U.S. the highest individual and business tax rates in the developed world.
• Biden has even proposed letting the 2017 Tax Cuts and Jobs Act expire, which would cut the standard deduction for Americans in half.

BIDEN WANTS TO RAISE TAXES ON AMERICAN ENERGY PRODUCERS

• Biden wants to target the American energy industry with tax hikes at a time when gas and energy prices are already at historic highs.
• Biden’s proposed budget would impose 11 new tax hikes on American energy producers, totaling over $45 billion in new taxes.
• Anne Bradbury, CEO of the American Exploration and Production Council, said Biden’s tax increases would “disincentivize additional production, decrease supply, and subsequently increase energy costs for families at a time of historic inflation [and] record-high gasoline prices.”
• Biden’s proposed business tax hike would result in energy companies “charging more in energy delivery services.”
  • Under President Trump, the Tax Cuts and Jobs Act of 2017 cut the business tax rate, making American energy companies more competitive and resulting in $90 billion of energy savings for American families.

BIDEN WANTS A DEATH TAX THAT WILL CRIPPLE AMERICAN FAMILY FARMS

• To fund his “Build Back Broke” agenda, Biden has called for repealingthe “step-up in basis” tax provision.
  • Biden’s new death tax would kill 80,000 jobs, lower workers’ wages, and shrink the U.S. economy by $100 billion over ten years.
• Currently farmers who inherit land are exempt from paying capital gains taxes until they sell the land and only have to pay taxes on any gains accrued after inheritance.
• According to the American Farm Bureau Federation, Biden’s new death tax would be “devasting to American agriculture and the broader U.S. economy.”
• The Department of Agriculture found 17 percent of small farms, 66 percent of medium-sized farms, and 80 percent of large farms would have a new tax burden under Biden’s proposal.

BIDEN’S “UNREALIZED” GAINS TAX

• Biden has proposed a likely unconstitutional tax on Americans’ property and businesses. 
  • Biden’s plan would tax some Americans for “unrealized” capital gains, meaning they would have to pay taxes on property that increased in value even if they didn’t sell it.  
  • This tax hike would “enormously complicate the tax code” and give vast power to the IRS. 
• Taxing unrealized gains could pose huge risks to everyday investors and Americans’ 401(k)s as owners of businesses may be forced to sell large amounts of their company’s stock, driving down its value.
• Biden’s tax hikes would result in an effective tax rate of 61 percent, nearly twice the current effective tax rate.

BIDEN WANTS TO RAISE THE TAX RATE ON AMERICAN BUSINESSES

• As the taxman-in-chief, Biden proposed increasing the business tax rate from 21 percent to 28 percent.
  • This would shrink the economy and eliminate 145,000 jobs in just the next ten years.
• Under Biden’s budget, the U.S. would have a higher business tax rate than Communist China.
• On top of hurting U.S. companies, Biden’s business tax increase threatens working-class Americans with “lower wages[,]...fewer jobs,” and higher prices.
  • According to experts, up to 100 percent of the cost of the corporate tax rate is ultimately passed on to workers through lower wages.
  • 31 percent of the corporate tax rate is ultimately passed on to consumers in the form of higher prices that hit working-class Americans the hardest.
• Higher business tax rates could also “threaten the life savings of families by reducing the value of publicly traded stocks.”
  • In 2019, 53 percent of American families owned stock while 80 to 100 million Americans were invested in a 401(k), meaning Biden’s business tax hike could pose a serious risk to millions of Americans and their savings.

BIDEN’S TAX INCREASES WILL HURT LOW-INCOME AMERICANS AND SMALL BUSINESSES

• Biden has lied time and time again that his plan will not raise taxes on anyone making less than $400,000 – Biden’s policies are regressive and will impact lower-income Americans.
• Biden and Democrats have proposed a tobacco tax, which will overwhelmingly affect those making less than $400,000.
  • Senior Policy Analyst at the Tax Foundation Ulrik Boesen: “A tobacco tax is probably the most regressive tax out there. There’s no question that it’s a tax on people earning less than $400,000.”
• Under Biden’s business tax increase, the bottom 20 percent of earners would see a drop in after-tax income.
• According to the U.S. Chamber of Commerce, Biden’s radical tax policies will “negatively [impact]” 1.4 million small businesses with less than 500 employees each.

BIDEN’S HIDDEN INFLATION TAX

• With Bidenflation at a 40-year high, Americans are struggling to make ends meet.
• Inflation is a “hidden tax” that is hitting Americans’ pocketbooks and leading to smaller paychecks.
  • In 2021, the Penn Wharton Budget Model estimated the average American family paid $3,500 in extra costs due to inflation.
  • In 2022, Bidenflation is expected to cost American families an additional $5,200 as inflation continues to accelerate.