May 2, 2023
Tax hikes in Bidenâ€™s budget would be â€˜devastatingâ€™ for Americans, says top House tax writer
The Biden administration has proposed a budget that includes significant tax hikes for Americans. However, the top House tax writer has warned that these tax hikes could be devastating for many Americans.
The proposed tax hikes include an increase in the corporate tax rate from 21% to 28%, an increase in the top individual tax rate from 37% to 39.6%, and an increase in the capital gains tax rate for those earning more than $1 million per year.
While the Biden administration has argued that these tax hikes are necessary to fund important investments in infrastructure, education, and healthcare, the top House tax writer has warned that they could have serious consequences for American families and businesses.
According to the tax writer, the proposed tax hikes would make it harder for American businesses to compete globally, as they would be paying higher taxes than their foreign competitors. This could lead to job losses and reduced economic growth.
In addition, the tax hikes could also hurt American families, particularly those in the middle class. The proposed increase in the capital gains tax rate could make it harder for families to save for their children's education or for their own retirement.
Furthermore, the proposed increase in the top individual tax rate could discourage entrepreneurship and innovation, as high earners may be less likely to take risks and invest in new businesses if they know that they will be taxed at a higher rate.
Overall, while the Biden administration's proposed tax hikes may be well-intentioned, they could have serious unintended consequences for American families and businesses. It is important for policymakers to carefully consider the potential impacts of these tax hikes before implementing them.