Assessment: February 29, 2020 Joe Biden said, “If you elect me, your taxes are going to be raised”, and he kept his promise …
Inflation is running rampant, federal spending is out of control, gas prices are at an all-time high and Americans are pessimistic on the future outlook of the economy. So what is President Joe Biden’s solution?
He has released a budget proposal that includes 36 tax increases on families and businesses totaling $2.5 trillion over the next decade. Alarmingly, this includes 11 tax increases on the oil and gas industry, taxes that will put a burden on households. (RELATED: Biden Admin Appears To Quietly Discontinue Offshore Leasing For Nearly Two Years, Budget Shows)
“You have sown much, and bring in little; You eat, but do not have enough;
You drink, but you are not filled with drink; You clothe yourselves, but no one is warm;And he who earns wages, Earns wages to put into a bag with holes.” Haggai 1:6
The budget doesn’t even include all the tax increases being pushed by Democrats because the budget omits the cost of tax increases within their stalled multi-trillion dollar Build Back Better Act. Instead of detailing these tax increases, the Biden budget includes a placeholder asserting that any new spending will be fully offset.
The tax increases included in this budget are bad enough. The plan calls for raising the corporate income tax hike to 28%. After accounting for state corporate taxes, Biden will give the U.S. a 32% corporate rate, a tax rate significantly higher than Communist China’s 25% tax rate and Europe’s average rate of 19%.
This tax increase won’t fall on large corporations as the administration asserts but will be passed along to families in the form of higher prices of goods and services. For instance, a 2020 study by the National Bureau of Economic Research found that 31% of the corporate tax falls on consumers. This will only exacerbate existing inflation problems and cause the price of everyday products to further increase.