President Biden and Congressional Democrats have repeatedly pledged not to raise taxes on anyone earning under $400,000. They’ve said it so many times it’s begun to sound like a broken record.
The thing is, when someone feels the need to repeat a claim over and over it’s likely they’re trying to pull the wool over your eyes. That’s exactly the case with the Democrat’s tax pledge.
According to an analysis by the non-partisan Joint Committee on Taxation (JCT), there isn’t a single income group completely spared from the Democrat’s tax hikes. Not those making under $400,000. Not those making under $100,000 and not even those making under $10,000.
Based on the JCT analysis, over 12 percent of taxpayers with incomes between $50,000 and $100,000 would see a tax increase. And, 35 percent of those earning between $100,000 and $200,000 would pay higher taxes.
You can’t raise taxes on small businesses and other job creators without hitting the middle-class.
Economic studies show that when you raise taxes on businesses anywhere from 20 to 70 percent of that tax increase falls on workers. JCT assumes 25 percent. And, whatever doesn’t fall on the backs of workers falls on shareholders. This includes millions of middle-class Americans trying to accumulate a nest egg for retirement.
So yes, when you hike taxes on small business from a top rate of 37 percent to over 46 percent – once including the Democrat’s proposed surtaxes – you hit the middle-class.
When you increase taxes on corporations from 21 percent to 26.5 percent – returning our corporate rate to one of the highest in the developed world once figuring in state taxes – you hit the middle-class.
Yet, Democrats contend their proposal includes tax cuts for the middle-class. More accurately, they cut taxes for a chosen group of middle and lower income Americans and a select few millionaires.
Unlike the 2017 tax law that cut taxes for the vast majority of the middle-class, the Democrat’s tax and spending bill leaves most – over 70 percent – with either a goose egg or a tax hike.
The Democrat’s tax bill is about picking winners and losers, not sound tax policy. If you don’t have the right family composition or spend your money how Democrats want, you don’t get a tax cut. But, you may get a tax hike.
On the other hand, if you’re wealthy and on the waiting list for a $69,000 all-electric 2022 SUV, you’re in store for a $12,500 tax credit – financed in part on the backs of the middle-class.
Moreover, if you’re a multibillion dollar company with a pre-existing commitment to go net-zero emissions by 2040, you’re in for a multimillion dollar tax windfall. Once again, financed in part on the backs of the middle-class.
Don’t be fooled by my Democrat colleague’s rhetoric. Their bill hikes taxes on millions of middle-class taxpayers and their narrowly targeted tax cuts leave most out in the cold.