Biden’s tax and money lies

Joe Biden claims that he will not raise middle-class taxes if he’s elected president tomorrow (or whenever the election becomes official).

Biden is lying as much as he is lying about the bad effects of Biden/Harris policies on your wallet.

Example number one from Jordan Davidson:

A new study shows that Democratic Presidential Nominee Joe Biden’s proposed economic plan would significantly hurt the long-term American economy if implemented.

While many mainstream media outlets claim Biden’s plan will target the wealthy and save the middle-class money, the 50-page study released by the Hoover Institution shows different results.

“Economists have paid too little attention to the economic effects of the Biden plan,” said Casey B. Mulligan, professor of economics at the University of Chicago. “Our report, which focuses on taxation, health insurance, regulation, and energy policy, suggests that these effects are potentially very large indeed.”

The study conducted by a group of financial and economic experts including Mulligan, former Chief Economist of the White House Council of Economic Advisers, and Kevin Hassett, Chairman of the Council of Economic Advisers since 2017, demonstrates how Biden’s plan will hurt everyone.

“We conclude that, in the long run, Vice President Biden’s full agenda reduces full-time equivalent employment per person by about 3 percent, the capital stock per person by about 15 percent, real GDP per capita by more than 8 percent, and real consumption per household by about 7 percent,” the report stated.

If Biden’s proposed changes are implemented, the economists warn that, according to the Congressional Budget Office’s projections, 2030 may yield “4.9 million fewer employed individuals, $2.6 trillion less GDP, and $1.5 trillion less consumption in that year alone.” The economists also note that the median household income in 2030 would fall by $6,500 despite Biden’s promises to prioritize the middle class.

In the study, the economists’ main findings center on three conclusions. First, that for Biden to achieve the “ambitious plans to further cut the nation’s carbon emissions,” 1.3 million net additional energy workers will need to be added into the transportation and electrical industries.

“Biden’s plans are ambitious,” says Mulligan. “Unless people drive a lot less, the electrification of all or even most passenger vehicles would increase the per capita demand for electric power by about 25 percent. Simultaneously, more than 70 percent of the baseline supply (i.e., electricity generated from fossil fuels) would be taken offline and another 11 percent (nuclear) would not expand.”

The study also concludes that “labor wedges are increased by proposed changes to regulation as well as to the ACA.” Because of the subsidations, the study found the average marginal tax rate on labor would rise by 2.4 percentage points.

“Labor falls primarily due to new and high implicit taxes associated with more generous health insurance assistance delivered in the framework of the Affordable Care Act (ACA),” the study reads.

“Our quantitative findings for the ACA should be no surprise given what had been found for previous efforts in the U.S. and other countries to expand health insurance coverage,” the study adds.

Lastly, the study concludes that Biden’s plan “reduces capital intensity by increasing average marginal tax rates on capital income.”

“Biden’s plan to raise personal income and payroll tax rates would push their federal rates from below 40 percent to, often, above 50 percent, and these are on top of state income taxes,” the study states, which would hurt small businesses, their employees, and consumers substantially.

While Biden and his VP Nominee Kamala Harris previously promised that they will not “raise taxes on anyone who makes less than $400,000,” they have also promised to repeal the tax cuts made by President Trump, which gave 80.4 percent of all taxpayers a cut and 91 percent of the middle quintile a cut.

“On Day One, Joe Biden will repeal that tax bill. He will get rid of it,” Harris said during the vice presidential debate in early October.

Repealing a tax cut is a tax increase, as those who enjoyed Barack Obama’s allowing the Great Recession payroll tax cuts to expire should know.

Example number two is from John Joyce: posts something determined accurate by Politifact:

Did you know Biden wants to get rid of something called “stepped up basis”? How does this affect you! When your parents pass and leave you the family house, normally you would inherit that property at what it is worth today. If you were to sell that house you would only pay taxes on the gain from what it is worth today and what it sells for. If Biden does away with “stepped up basis,” you will inherit the property for what your parents paid for the property. If you decide to sell you will pay taxes on the difference between the original purchase price and what it sells for today. Here is what this looks like!
Inherited House at Current Value – $200,000
Sells for $205,000

Taxable income = $5000

Taxes Due – 20% of $5000 = $1000

Profit to you = $204,000

Biden Policy

Inherited House at original purchase price – $40,000

Sells for $205,000

Taxable income = $165,000

Taxes Due – 20% of $165,000 = $33,000

Profit to you = $172,000

If your parents were to have sold this property prior to passing, they would have paid no taxes because it was their primary residence.

So much for helping the middle class get ahead.

My educated guess would be that at least 95% of Americans don’t even know Biden has proposed this. We are talking tens of thousands of more tax dollars for the average sold after inheritance! Wow, google “Biden stepped up basis” and educate yourself because this is a biggie!

Example three and more come from the Wall Street Journal:

‘I don’t see red states and blue states,” said Joe Biden in the final presidential debate, borrowing a line from Barack Obama. He must not have examined the policies that he and Democrats in Congress are pushing that would do disproportional harm to Republican states, especially in the South, while favoring Democratic states. Let’s examine four policies in particular:

• A $15 national minimum wage. Mr. Biden supports it and House Democrats last year voted to raise the federal minimum in $1.10 annual increments to $15 per hour in 2027 from the existing $7.25 floor.

Mr. Biden says a federal $15 minimum won’t harm small businesses. But the labor market isn’t national. It varies by state and region based on the dominant industries, labor supply and cost of living. The Labor Department says 21 states plus Puerto Rico had a $7.25 minimum wage as of Sept. 1. Ten of those are Southern states with lower per capita incomes than the Northeast or West Coast.

Their small businesses would be hurt far more than New York ($11.80 minimum wage) and California ($12), where the state minimum is already headed to $15. Seven blue states and 28 cities have imposed a minimum of $15 or higher that will kick in over the next seven years.

A new study from the Employment Policies Institute (EPI) estimates the House legislation would result in two million job losses across the U.S. Fewer than 10% of the losses would be in states with a Democratic governor and legislature. Layoffs would be especially heavy in Texas (370,664), Pennsylvania (143,402), Florida (133,328), North Carolina (121,581), Ohio (108,312) and Georgia (106,427). They’d also be high in 16 other states where the minimum wage isn’t set to rise above the current federal floor.

Labor makes up a smaller share of business operating costs in blue states because rents and utility bills are higher. Businesses in wealthier areas also have more flexibility to raise prices to offset higher labor costs. Most workers on the job for more than a few months earn more than the minimum wage, and a higher minimum discourages businesses from hiring less-experienced workers—or those with criminal backgrounds.

The EPI study estimates that about 60% of job losses from a $15 federal minimum wage would occur among workers between the ages of 16 and 24. No matter. Liberals want to equalize hiring burdens nationwide so Democratic states aren’t less economically competitive.

The blunt reason some people don’t make $15 per hour is either because they don’t provide $15 per hour of value to their employer (labor costs are the number one cost of small businesses), or they cannot be replaced by someone who will work for less than $15 per hour. Employees who don’t like that should improve themselves. The purpose of a business is to provide goods or services to its customers, not to employ people.

• Banning right to work nationwide. That’s also the logic behind the plan to abolish right-to-work laws in the 27 states that prohibit employers from requiring workers to join unions. Most right-to-work states are in the South and West, though West Virginia, Wisconsin and Michigan joined the club more recently.

Right-to-work states have added more jobs and population this past decade, though they also tend to impose lower taxes and other burdens. Boeing announced a few weeks ago it would consolidate its 787 Dreamliner assembly in right-to-work South Carolina after shifting some production there a decade or so ago from Washington state to avoid strikes by its machinist union.

States have been able to pass right-to-work laws since Congress passed the Taft-Hartley Act in 1947. Democrats want to repeal that right to help unions in non-right-to-work states.

• Restoring the state and local tax deduction. The pandemic is accelerating the flight of businesses and high-earners from blue states. By capping the SALT deduction at $10,000, the 2017 tax reform exposed the well-to-do to the full pain of high taxes in blue states. Democrats want to restore the full state-and-local tax (SALT) deduction, albeit with much higher federal tax rates.

In 2017 California, New York and New Jersey accounted for 40% of SALT deducted, according to IRS data, with only 20% of the country’s population. Texas, Florida, Arizona, South Carolina and Montana accounted for about 20% of the U.S. population and a mere 10% of the SALT deducted. Red states tend to have much lower income and property taxes.

• Another bailout for state politicians. House Democrats passed the Heroes Act in May that provides $915 billion to state and local governments. Senate Republicans oppose this blowout after the $150 billion in direct aid plus $90 billion for schools, public transit and Medicaid that flowed to state and local governments under the Cares Act in March.

Democrats will certainly pass another bailout in 2021 if they win the election. This will amount in effect to a red-state subsidy for public-union governance in states like California, Illinois and New York. The Heroes Act would also help blue states by raising the federal Medicaid match by 14 percentage points, and overall bailout funds are mostly allocated based on state population and unemployment.

Democratic states that stayed locked down longer and have higher unemployment have drawn more federal aid. According to our calculations based on Bureau of Economic Analysis data, annualized per capita government transfer receipts in the second quarter after the Cares Act passed were significantly higher in New Jersey ($14,033), Illinois ($9,223), New York ($9,030), California ($8,673), Washington ($8,511) and Oregon ($8,258) than Texas ($6,450), Indiana ($6,085), Tennessee ($5,430), Florida ($5,399), Georgia ($5,353) and Arizona ($5,326).

Mr. Biden is right when he says the government shouldn’t pit states against one another. But he ignores that the national policies Democrats are pushing have the effect of systemically discriminating against red states.

While this state veers politically like someone who has had too many Brandy Old Fashioned, the vast majority of this state outside the Axis of Evil (Madison and Milwaukee) is politically and culturally conservative. So votes for Biden are votes to hurt a majority of this state.

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