Staff Reports
President Biden is making a big bet on raising taxes, going against the traditional political strategy of promising tax cuts to get elected. He has called for the elimination of the tax cuts put in place during the Trump era and announced plans to impose several new taxes, including increasing income taxes, taxing unrealized capital gains, and creating a Billionaire Minimum Income Tax. Biden insists that these tax increases will only affect the wealthy, sparing taxpayers making less than $400,000.
Biden is tapping into a growing sentiment of division between the wealthy and everyone else in U.S. politics. He aims to use the revenue from these tax hikes to expand the social safety net and address income inequalities. Recent polling shows that a majority of Americans are in favor of heavier taxes on the rich and corporations, indicating a shift in public opinion towards wealth redistribution.
ICYMI: "President Biden has pitched an array of tax hikes targeting corporations and wealthy Americans, but the steeper levies could weigh on the already-fragile U.S. economy, according to the Tax Foundation." https://t.co/H5Sb4CjoWb
— Rep. Don Bacon 🇺🇸✈️🏍️⭐️ (@RepDonBacon) April 6, 2024
The president’s tax hike proposals include increasing the income tax bracket for individuals making over $400,000, establishing a Billionaire Minimum Income Tax, raising the corporate tax rate, and increasing the long-term capital gains tax for top earners. However, some opponents argue that these proposals could have constitutional issues and may ultimately affect those lower on the income chart.
Republicans are warning that Biden’s tax plan won’t just affect the wealthy, claiming that it will ultimately burden the middle class with higher taxes. Conservatives criticize Biden’s approach as creating a “fantasy world” where only the rich and corporations are forced to pay more to the government. They argue that higher taxes on corporations will ultimately impact workers, consumers, and retirees, despite Biden’s assurances that the focus will be solely on the wealthy.
Biden’s push for increased IRS funding to target wealthy individuals for audits has also sparked controversy, with critics expressing concerns about the potential impact on taxpayers making less than $400,000. This battle over tax policy and IRS funding is shaping up to be a central issue as the 2024 election approaches.
