Biden Signals Tax Policy

President Joe Biden caught many Americans off guard when he announced that if he wins re-election, Americans should be prepared to see an increase in their taxes.

This statement comes at a time when citizens are already struggling with the high inflation rates and economic challenges that have defined Biden’s presidency thus far.

Biden claimed that the reason for this tax increase is because the tax cuts implemented by former President Donald Trump that “overwhelmingly benefited the wealthy and biggest corporations” have expired. He promised that if he is re-elected, they will stay expired. He previously pledged not to raise taxes on those earning less than $400,000 a year.

The law in question is the Tax Cuts and Jobs Act of 2017, which simplified taxes and reduced taxes for all income levels. This means that under Biden’s plan, every American, regardless of income, will see a tax increase. Biden’s statement also goes against his repeated assurances that he only plans to raise taxes on the wealthy.

The Tax Foundation released a report last month stating that Congress has less than two years to prevent a “vast majority” of Americans from being hit with tax hikes. This is the result of the expiration of the TCJA, which has been beneficial for all income groups. According to the report, this law lowered marginal tax rates, widened tax brackets, and lowered personal and dependent exemptions, among other changes.

Biden’s decision to let this law expire is especially concerning in light of the struggling economy and high inflation rates. Families and businesses have already been stretched thin and the last thing they need is another tax increase.

Conservatives are criticizing Biden’s stance, accusing him of wanting to have it both ways. On the one hand, he wants to take credit for ending the “Trump tax cuts” and claim the deficit savings, but on the other hand, he is promising to extend them for all but the top 2% of income earners. This would cost taxpayers an additional $2 trillion over the next decade.

In addition, Biden’s plan to reduce the child tax credit from its current $2,000 to $1,000 is also causing concern among Republicans. This would mean less support for families already facing economic challenges.

Biden’s announcement that he plans to increase taxes if re-elected is causing alarm among Americans. This is a stark contrast to his previous promises not to raise taxes on the middle class, and it will only add to the financial struggles many are already facing. It remains to be seen if the American people will support such a policy in the upcoming election.