(ConservativeJournal.org) – President Joe Biden hinted on April 24 that a tax hike is coming if he wins another term in November. The announcement comes as the economy is a key issue with inflation running rampant and many Americans struggling to pay their bills.
Biden posted on X, attacking the $2 trillion tax cut Donald Trump signed into law in 2017, suggesting that it “overwhelmingly benefited the wealthy.” Biden then announced his intention to allow the law to expire.
The Tax Foundation found that “the vast majority” of Americans would be hit with a tax hike in the next two years if the law is allowed to lapse. The Tax Cuts and Jobs Acts of 2017 (TCJA) simplified and reduced taxes for virtually every American.
The Tax Foundation highlighted how the TCJA made a number of changes to tax law that impacted everyone, including widening the tax brackets, lowering marginal tax rates, and doubling the child tax credit. They claimed that the average tax rate dropped for everyone after 2017 and hasn’t returned to previous levels.
Biden promised not to raise taxes on anyone making less than $400,000 per year in 2021; allowing the law to expire would break that promise.
Manhattan Institute Senior Fellow Brian Riedl pointed out that if Biden allows the law to expire, the child tax credit will drop, and taxes for families bringing less than $400,000 per year will see their taxes increase. He suggested that the White House is trying to repeal a popular Trump law while also claiming to want to help lower-income Americans. Riedl highlighted that those two goals are at odds with one another.
Biden previously mentioned his intention to raise taxes in a second term if re-elected during his State of the Union address in early March. During his speech he mentioned a desire to raise the corporate tax rate 40% and implement new restrictions on deductibles for companies that have employees with salaries over $1 million per year.
When it comes to taxes, the choice is clear. President Trump wants to reduce them while Biden is eager to raise them.
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