- Democratic Presidential Candidate Joe Biden continues to push for higher taxes.
- His tax plan would hamper job growth and stifle innovation at a time when it’s needed most.
- His plan would also end up bankrupting Social Security earlier than expected.
Last week, Joe Biden unveiled a moderate economic course, designed to sound appealing in swing states. What he didn’t mention, however, would be any change in tax policy.
That’s a problem, as a poor tax policy can adversely impact and offset any positives for the economy. Looking at Biden’s tax proposals, it’s easy to see why this is the one issue where he’s being out-polled by Trump.
Biden’s Tax Plan: Soak the Millionaires who Earn an Income
America’s tax system is a progressive one. That’s not a political term, but a reflection of the fact that as someone earns more, that additional income will be taxed in a higher tax bracket than lower rates of income.
Biden’s plan would make the tax system more progressive, targeting the top 2% of taxpayers.
In theory, that sounds great. After all, higher-income groups can afford to pay more, and many of those in the top 1% of income globally have already expressed a willingness to pay higher taxes.
Those individuals created wealth by starting a successful business, and most of their wealth is tied up in that business. Warren Buffett is a billionaire, but he only took home $375,000 in income from his CEO job last year.
Business Taxes Would Send the U.S. to One of the Higher Rates in the Developed World
What about targeting businesses themselves? Businesses have costs, and the higher taxes are, the more difficult it is for a successful business…