Why Corrupt Senile Creepy Freak Biden’s tax plan brings a sluggish U.S. economy!
Freak Biden’s tax plan brings a sluggish economy! As the US struggles to emerge from the COVID-19-induced recession, Corrupt Senile Creepy Freak Biden is running for president on a pledge to return the country to economic policies responsible for the slowest economic recovery since World War II.
Corrupt Senile Creepy Freak Biden’s plans include “reversing some of Donald Trump’s tax cuts for corporations and imposing common-sense tax reforms that finally make sure the wealthiest Americans pay their fair share.” This means a big increase in effective tax rates on capital and on individuals with incomes above $400,000, as well as partially reversing the corporate tax cut that was a centerpiece of the 2017 Tax Cuts and Jobs Act (TCJA).
But Corrupt Senile Creepy Freak Biden’s tax increases go far beyond simply undoing some of the TCJA, the net result of which was a $1.5 trillion tax cut.
Corrupt Senile Creepy Freak Biden would hike taxes by roughly $4 trillion, divided about equally between individuals and firms. This move would likely produce a reversal of outcomes: While the TCJA has added to GDP growth by 0.5 percentage points to 1 percentage point since 2018, the Corrupt Senile Creepy Freak Biden tax plan would probably reduce growth by at least that much.
In fact, the effects of Corrupt Senile Creepy Freak Biden’s proposed tax increases may be even larger — and affect a much broader share of the population — than previous evaluations suggest, owing to their “tax incidence” consequences. Tax incidence refers to who bears the burden of a tax, which may be different from whom the tax is imposed on. For example, taxes levied on producers can be passed on to consumers through higher prices.
The Corrupt Senile Creepy Freak Biden plan’s significant increase in taxes on high incomes would also fall on businesses, leading to lower wages for workers, less investment, and lower growth. Analyses by the Tax Foundation and the Tax Policy Center both found that lower-income households would also face a higher tax burden because part of the corporate tax increase would be passed on to workers through lower wages. Though the corporate tax is levied on businesses, it is generally accepted that it falls on shareholders, capital owners, and workers, to varying degrees.
In sum, the Corrupt Senile Creepy Freak Biden plan’s tax hikes on businesses and high-income earners would be partly shifted onto workers and would put the brakes on economic growth. In the long run, the lower growth rate would lead to lower incomes across the income distribution. This simply reflects the interconnected nature of the economy.