Mazzei Minute: 04/16/21
The Tax Man cometh. His name is Joe Biden. So, while the U.S. borrows trillions of dollars to pour stimulus into the economy, Biden wants to raise your taxes to partially pay for the historic spending binge.
Art Laffer, the famed conservative economist, reminded all of us this past week that the Trump tax cuts temporarily reduced U.S. Government revenue by $1.6 trillion, but the resulting growth in the economy and wages replaced that revenue in less than two years! Liberal economists are silent about this after their doom and gloom announcements when Congress passed Trump’s plan.
Now Biden wants to raise revenue by taking $3.3 trillion from businesses and individuals over 10 years. To accomplish this, Nancy Pelosi has begun drafting the following:
Raising the tax rate on higher earners from 37% back to Obama’s 39.6%
Increasing the corporate tax rate from 21% to 28%
Imposing the Social Security Tax on earnings above $400,000 in spite of the current cap at $137,700 of income
Doubling the Global Intangible Law Tax Income from 10.5% to 21%
The non-partisan Tax Foundation has calculated that the Biden plan will reduce gross economic production by -1.62% and eliminate 542,000 jobs.
Trump unleashed the economic growth potential of the American economy. Tax Man Biden will depress growth and prosperity. The American people will likely remember Biden’s large tax increases come the 2022 mid-terms.