We’ve been hearing for months about Biden and Pelosi’s bloated tax plan, and now we finally get to look under the hood of the largest tax hikes in American history!
The Democrats' $2.9 Trillion plan raises the corporate tax rate from 20% to 26.5% and increases the top individuals’ rate to 39.6%, with an additional surcharge for successful job creators who make more than $5 Million.
Some will say, “Oh, those rich people can afford to pay more!”, but what they don’t realize is that in response to higher taxes, successful businesspeople tend to employ less people and to pay lower wages.
We saw the opposite of this with the Trump tax cuts in 2017. When rates were lowered, employment and wages boomed to the highest levels ever.
The Democrats' tired and old tax and spend plan, which also raises the taxes on investments 20% higher, will depress growth and wages for the lower tier of employment income. Sadly, wage growth for minority workers will take the biggest hit.
The best tax policy is one that “lifts all boats” as both John F. Kennedy and Ronald Reagan were fond of saying. Unfortunately, the Democrats have completely missed the boat.