Will Biden Tax Policy help or hurt Americans?

[Juggy777]

I believe that we all know what Biden’s tax policy is going to be, as he had clearly advocated this in the run up to the elections, and now I believe is the right time to discuss what impact will it bring for Americans.

1) This policy plans to target those who earn $400,000 in wages, and levy an additional 12.4% tax on their existing tax structure.

2) Those who earn $125,000 a year will see lots of benefits from this policy:

Lower-income Americans, by contrast, may see benefits through an expanded Earned Income Tax Credit, an expanded Child Tax Credit, and a proposal to institute free college for families that make less than $125,000 a year, Prisinzano said.

Lastly in such a pandemic year do you’ll feel that he’s right to levy additional tax on the wealthy as they’re already reeling due to covid? or do you’ll feel that he’ll relax his tax policies for a while.

Source:

https://www.inquirer.com/news/joe-biden-pennwharton-budget-model-economic-tax-plan-senate-georgia-20201116.html

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[Vaskiy]

In an interview even the President Trump said he used all the loop holes available in the policies to make his Companies get exemption from taxation. Right now Biden government seems to make correction to the policies. Every government at the beginning acts fast and this is why everything is started from now on, without taking into consideration the prevailing situation in the country.

[erikoy]

That could not hurt on the low income earners and I think it is just fair in my opinion but I do not really know how the setting of a workplace in your country. But here in country where it was already implemented where low to average income earners are only getting low income tax and getting high returns in their salary. However the load of works here in our place is that if you are in higher position all the works will be passed on the lowest position but getting high salary. Those who work hard for them get less salary compared to them. This is very unfair but we have no choice because they are already in the position and we coule not do nothing except to accept it or resign.

[Cnut237]

I believe that we all know what Biden’s tax policy is going to be

Not necessarily. There may be a considerable gulf between what Biden wants to do and what he can do. Remember that—depending on the results of the GA run-offs—he is likely to face a Republican-controlled senate. I know he's a bridge-builder by nature, but still, it seems unlikely he'd get any major tax overhauls past the senate.

[avikz]

Post pandemic time, we will see a lot of other countries to increase tax on high networth individuals. Even in my country, the government has implemented 4% cess additional to the current tax structure on whoever is earning beyond a certain limit. As the world trade is slowing down, it makes no sense in imposing additional taxes on the corporates because then these corporates will move to a different country where the tax rate is low. But government will have to find new avenues for making money otherwise the public services will suffer at the end of the day!

I believe this tax restructuring in US is still at discussion level. But 12.4% seems quite high! Possibly the percentage would come down after deliberation.

[CODE200]

Increase on taxation won't be that much of a problem IF the projects regarding investment and other plans would meet reality. In other words, if no corruption will happen. I live in a country wherein taxes are one of the highest but progress still is lacking simply because officials are putting the money of the countrymen in their pockets. If things of such won't happen during his presidency, plans would benefit the economy and country in general.

[drlukacs]

The above taxation is really unfair for the rich and this tax disparity will also reduce people's ambitions. Because if you work hard, the higher your salary, the heavier you will be taxed, so why work hard to get rich?
This is Biden's weakness in taking care of the economy in America. If Biden really elected, I think the United States will once again fall into critical.

[Gozie51]

By calculation with 125,000 per annum, that is about 10,000 per month and this class is referred to low income earners  . Anyway, I think trump tax regime wasn't very stiff compared to what I think Biden will be doing in the later days of his administration. The tax levy has been a major generation of income to the democrats from my idea.

[Sterbens]

That could not hurt on the low income earners and I think it is just fair in my opinion but I do not really know how the setting of a workplace in your country. But here in country where it was already implemented where low to average income earners are only getting low income tax and getting high returns in their salary. However the load of works here in our place is that if you are in higher position all the works will be passed on the lowest position but getting high salary. Those who work hard for them get less salary compared to them. This is very unfair but we have no choice because they are already in the position and we coule not do nothing except to accept it or resign.

It feels unfair to have low income, while the work done is often not worth the salary you get. the government needs to check the wages of casual workers, or casual workers. If seen from the tax payment it is quite low, but there are still many workers who still complain, because there is no increase in wage prices each year.
If Biden does not follow up in America, he will be considered the leader of a country that is unable to develop the economy there.

[jacafbiz]

I think people need to stop speculating on this Tax issue, I believe there is going to be an income cap on those that fit into the tax bracket, the major thing is if the economy is doing well and people are well paid then the tax burden won't be an issue

[Findingnemo]

I think people need to stop speculating on this Tax issue, I believe there is going to be an income cap on those that fit into the tax bracket, the major thing is if the economy is doing well and people are well paid then the tax burden won't be an issue

If you are going to collect unfair amount of taxes the companies may move to another country where they can make more money so its not really big problem for the companies,its going to be an issue only for the salaried people and you can't say it won't be a burden for them because you may know the actual situation only if you are in such condition.

[mu_enrico]

"You will see a depression the like you have never seen before" - DJ Trump.

Taxing the top 1-5% only makes them get out from the US and invest elsewhere. It also makes foreign investments into the US not appealing. Hence, fewer jobs, less income, less consumption -> downward spiral.

[Hydrogen]

Food for thought.  ^

...



I'm a big fan of the tax plan posted on Donald Trump's website (above) when he ran for President in 2016. Tax cuts for poor to middle class earners would free up income allowing consumers to individually decide how capital should be allocated. Tax hikes shift that decision making capacity into the hands of the government, rather than free markets. Personally I would prefer free markets decide how funds are allocated through competition and meritocratic process.

[DrG]

None of the big tech giants that helped Biden get elected actually manufacture anything. Their entire contribution is payroll taxes and any C-corp taxes they pay above that. It's the little S-corps run by mom and pop business that carry a higher tax burden. Guess who Biden is going to help.

Trump's policies were not the best as that 0% interest rate which he pushed the Feds who wanted to knee jerk raise on a growing economy in 2017/2018 but it was the best considering the crap we had to work with with an overheated housing market on the expensive coasts and a depressed workforce.

Unless all those unskilled labor masses suddenly learn to code there's going to be a lot of unemployment. Companies are going to take their capital and just allocate it to automation to avoid paying high corporate rates Biden institutes - or they'll just leave the country.

[bitmover]

It is already hurting Americans.
Usd is losing value against most currencies world wide. And he didnt even started doing what he promised.
I understand it was hard to vote in Donald Trump... but  to raise  taxes is quite crazy also.

[Darker45]

While it indeed benefits the low-income families, I think it is extremely untimely and quite unfair for the government to levy additional taxes to certain sectors in the middle of a pandemic and economic crisis. I think a new tax policy could wait for several months, until the smoke of the present crisis settles down. It could be implemented while the recovery is ongoing. But, as it is, Biden's tax policy looks fair enough.

[Lorence.xD]

It is already hurting Americans.
Usd is losing value against most currencies world wide. And he didnt even started doing what he promised.
I understand it was hard to vote in Donald Trump... but  to raise  taxes is quite crazy also.

Tax raise policy that Biden wants to propose does not hurt Americans, remember that taxes is used to fund infrastructure that benefits the public. I think that it is fair that people earning more money should pay more taxes. USD will not completely lose its value because there is a gold backing the fiat. I understand the sentiment of the taxes that are mishandled and mismanaged that might be the reason that taxes leave a sour after taste but trust me, taxes is the reason why there are roads and bridges. Just consider tax as your rent to your country that you are living in, sort of.

[Cnut237]

"You will see a depression the like you have never seen before" - DJ Trump.

Taxing the top 1-5% only makes them get out from the US and invest elsewhere. It also makes foreign investments into the US not appealing. Hence, fewer jobs, less income, less consumption -> downward spiral.

I've never been remotely convinced by this argument. It's pure scaremongering. A small tax increase for the ultra-rich doesn't suddenly transform the US into a socialist dystopia where everyone is haemorrhaging money and it's impossible for billionaires to make a profit, and they have to spend vast amounts of money uprooting and establishing a base in a different country.

[stompix]

Donald Trump's reduced tax rate cuts have not succeeded in creating jobs in America.

Yet the number of employed people during his term has grown by 6 million.
From the article the OP quoted:

Between 2021 and 2030, Biden’s plan calls for raising $3.375 trillion in additional tax revenue and increasing spending by $5.37 trillion.

Yeah, tax the kulaks, tax the rich give to the poor, indebt your self to buy votes for poor people on promises that will lead only to make them poorer.
How many times has this shit failed and how many times do we need to see it fail to understand the who damn concept is fundamentally broken?
But I think it's about time the US has a bit of taste of real socialism and it will teach them a lesson for a century or so, one they will not be able to forget.

USD will not completely lose its value because there is a gold backing the fiat.

First time I've heard of this! Care to explain a bit further? 

[slapper]

We cant not know yet. But Trump's policies have made wealthy people and companies become even wealthier. The new policies is a way Biden promising to reduce the rich-poor gap and improve the standard of those who live under condition. Though, nothing ensures that everything will be ameliorated after new policies. Just wait and see how we use the tax for national purposes.

[Deddyhoku]

He is going to destroy the whole energy industry and makes taxes bigger for rich people. Of course first one will hurt economy, and the second will cause leave of the rich people from usa

[davinchi]

How could people think that the economy right now that is going bad could ever be Bidens fault considering he is not even the president. If you think Biden's potential presidency could hurt the economy today before it happens, you have no idea how economy works at all.

Even during early days of Bidens presidency the economy could be going bad and it wouldn't really be Bidens fault because economy is something that takes time to reflect on changes that was made, which means if you are talking about first 6 months of Trumps presidency that was Obama as well and first 6 months of Obamas presidency was Bush and first 6 months of Bush' presidency was Clinton, that has always been seen that way by economists. If you think you know better, you could always believe in what you believe, doesn't make it right but nobody also can force you to change your mind, it is your own free will.

[Nellayar]

No matter how his new tax policy is good, America will not escape the recession phase. Due to covid19, it would be impossible to recover those losses. Resources were drained as well as the debt of America continuously moving up. However I think he wants to habe a regressive tax reform to ensure that the low income earner and high income earner will be equal in terms of paying taxes. But I am sure that businessman will definitely become less profitable because of this tax policy.

[Dorodha]

To increase the size of the relief fund for the recovery of the economy that collapsed due to the coronavirus. Republicans on the other hand rejected the Democrats' spending plan. This created a stalemate in the discussion now again Republicans are hinting that they will make a deal before the new president enters office. China will find a way to deliver the goods to America. but what chance does America have if the cost of a trade war is to be reimbursed by Americans with taxes then Biden's tax policy will hurt Americans.

[Leviathan.007]

I hired about the Biden's tax policy any many people are talking about it and making articles. some compiling and some not. the whole point is the policy is known yet because any tax and economic policy will take effect in long or mid-term considering what we saw in the history of taxing if they target people who earn 400K, they people wont stay slice and they will surly try to do money laundry and stop paying taxes by some tricks. So I would downvote this tax policy, however we need to wait and see the effects.

[shield132]

The above taxation is really unfair for the rich and this tax disparity will also reduce people's ambitions. Because if you work hard, the higher your salary, the heavier you will be taxed, so why work hard to get rich?
This is Biden's weakness in taking care of the economy in America. If Biden really elected, I think the United States will once again fall into critical.

In any way, when you work hard, you still get more money than those who get less income. If I earn $100 000 and don't get taxed but you earn $200 000 and get 20% tax, you still have higher profit than me, $160 000.

Personally, I like this idea. A lot of people on their own are very greedy. They'll just take millions and millions and won't even spend half of it. If we want to create a better future, then we should set higher tax on rich people. Higher tax on them means that money will go from those who have surplus to those who have a deficit of it. I don't mean direct movement but that money should be invested in strategically needed businesses and services. We don't have to push poor people harder but we can take some money from rich people and invest in necessary things.

[iv4n]

Like always some will love it, others will hate it! But let's wait and see what will happen, we all know how big words politicians have before they got elected, after they forget almost everything! Why would be different now?
What this pandemic did is crazy for the global economy, and for some countries it will be very difficult to get back their normality, if I can say it like that. New governments are in a deep shit, sort of speaking, and they didn't even start! Of course, they will try to fix many problems, but as always I doubt in success!
At least we in crypto know what to expect from someone (anyone) with big (huge) promises!

[coolcoinz]

1) This policy plans to target those who earn $400,000 in wages, and levy an additional 12.4% tax on their existing tax structure.

2) Those who earn $125,000 a year will see lots of benefits from this policy:

Another robin hood socialist bastard. Take from the rich and give to the poor is always a good way of buying votes, because in every society there's more poor than rich.
Any idiot who wants to win elections and doesn't have any real business plan can base his whole campaign on socialism, but the problem of socialism is that it sounds great and seems to work at first, but always loses in the long run. Biden is old enough to know that.

[bitmover]

I understand the sentiment of the taxes that are mishandled and mismanaged that might be the reason that taxes leave a sour after taste but trust me, taxes is the reason why there are roads and bridges.

You have a point, but there must a balance between taxes and production.

There is also another reason to have roads and bridges: People with money to travel from one place to another.

If rich people left to somewhere else, there will be less new roads and bridges.

Sometimes small taxes increase production and the government makes even more money. Look at this Laffer chart:



There is a point where increasing taxes hurts the economy and the taxes revenue itself.

You can take a look here, USA already has high tax rates:
https://worldpopulationreview.com/country-rankings/highest-taxed-countries

[The Sceptical Chymist]

I believe that we all know what Biden’s tax policy is going to be, as he had clearly advocated this in the run up to the elections

I'm not very much into politics, but one thing I do know is that politicians often make pre-election promises that they either have no intentions of keeping or are unable to keep because they meet resistance in the House or Congress.  Therefore, I wouldn't presume to predict what's actually going to happen.

However, it's no sweat off my back if people earning over $400k/year have to pay more in taxes (though I think that's unfair for them to be targeted).  As long as taxes for the average working class stiff don't increase, I'm fine with that.  But what I'm really concerned about is how all of this money printing and stimulus relief and everything else is going to get paid for.  I don't see how that can happen unless everyone's taxes are increased dramatically.  And if the government has a plan for that, I certainly haven't heard a word about it.

A lot of people on their own are very greedy. They'll just take millions and millions and won't even spend half of it.

Why should they be required to spend it?  Would you like it if your government mandated that you had to spend X% of your earnings in order to stimulate the economy?  Probably not. 

[chip1994]

In my opinion, this is an uneconomical policy and will only make America worse.  This policy will soon cause a political crisis in America, the rich will no longer try to develop.  Naturally, that action will lead to an economic recession in America soon.

[darewaller]

He is going to destroy the whole energy industry and makes taxes bigger for rich people. Of course first one will hurt economy, and the second will cause leave of the rich people from usa

That might be a possibility because big businesses would always want to operate in a country where taxes are minimal and while having more taxes is beneficial for the government and spending it on lower earning Americans is even better but they would not want to lose big businesses because of a few absurd policies. Keeping a keen eye on this drama and lets see how it pans out.

No matter how his new tax policy is good, America will not escape the recession phase. Due to covid19, it would be impossible to recover those losses. Resources were drained as well as the debt of America continuously moving up.

The flip side is that everyone is going to face the same problem as America and when each country faces the same problem you can't really call it a recession because it is more like a worldwide problem caused by the pandemic.

[Febo]

Will Biden Tax Policy help or hurt Americans?

Whatever he or any other USA president will do will leave USA to spend more then they produce. Debt will increase as it did under a USA presidents so far. This will go on only until it will stop and then it will return like a boomerang.

[zasad@]

https://www.usdebtclock.org/
US national debt online

And in the United States, does the president have the right to single-handedly pass laws or must they be approved by the Senate?

For example, in Russia every candidate promises to take more from the rich and give to the poor (like Robin Hood ), but in practice, the more earnings, the less tax.
There are cases when the tax rate is reduced, but a new tax is added, which ultimately only increases the tax burden.

[doomloop]

We cant not know yet. But Trump's policies have made wealthy people and companies become even wealthier. The new policies is a way Biden promising to reduce the rich-poor gap and improve the standard of those who live under condition. Though, nothing ensures that everything will be ameliorated after new policies. Just wait and see how we use the tax for national purposes.

I acquiesce because the policies made in Trump era were supposed to help big business because Trump himself is a businessman so I am happy the new policies are working towards having a more balanced economy where the poor people are relaxed via means of better policies, I was reading the article and was glad to read one sentence, that is - Free college for families that make less than $125,000 a year.

Imagine how big of a relief it would be for a below average family to have free college because education is ultimately the biggest help one can get and they are working on it. I must say, I am impressed with Biden and his policies already.