Biden planning first tax hike(major) since 1993

[fiulpro]

As we all know people did vote twice in a row for trump and if also was for a reason :
He did cut the tax of everyone on the first day , now that means even the richest didn't have to pay much. At the same time he did give out huge relief funds.
Now Biden did roll out a COVID relied fund for the people but at the same time he did see that there are much needed *Job creation* which does mean that the government needs *money* but from where ? Most of it has been used already and given to people and the US itself is in major debt. So Biden plans on increasing the tax , which would be the first major increase since 1993 , which is extremely weird. The wealthiest Americans and the biggest cooperations now would have to pay more tax!! I do think this is long overdue and should be done but people of the middle class should be exempted from this , , more specifically people without a job.
What do you think ?
Is this a right move ?
Ofcourse it would surge the unrest amongst people and they might be on the streets anyways how should the Government handle this ? Should the major tax hike be done in small steps?

https://www.foxbusiness.com/economy/biden-reportedly-planning-first-major-tax-hike-in-next-economic-package

[The Sceptical Chymist]

You realize that Americans have had to pay tax on internet purchases for only a few years now, right?  That, IMO, was a major taxation event in itself.

And though I haven't read anything in detail about what Biden plans to do as far as hiking taxes, it would come as no surprise if he does indeed do that.  I keep writing that all of this Monopoly money and stimulus and quantitative easing has to be paid for somehow, and if it isn't through increased taxes I don't know how else it would be done.  Sounds like he's trying to get ahead of all of the debt that keeps accumulating, but who knows.  I never claimed to be able to see into the minds of politicians.

Regardless of what Biden does as far as tax policy, I'm glad he's president and not Trump.  I don't think the country could have taken another four years of that psychopath.

[bryant.coleman]

To summarize, these are the proposals:

1. Increasing the corporate tax rate to 28% from 21%
2. Increasing the income tax for those who earn more than $400,000 per year
3. Increase in estate tax (not sure how much)
4. Increase in long-term capital gains tax for those with annual income of >$1,000,000 (not sure how much)

All of these will have negative consequences. If they increase the corporate tax, then the unemployment issue will get even worse. On paper, the democrats are claiming that they are taxing the rich. But the rich have most of their assets in offshore tax havens and this measure will end up mostly targeting the middle class.

[avikz]

As we all know people did vote twice in a row for trump and if also was for a reason :
He did cut the tax of everyone on the first day , now that means even the richest didn't have to pay much. At the same time he did give out huge relief funds.
Now Biden did roll out a COVID relied fund for the people but at the same time he did see that there are much needed *Job creation* which does mean that the government needs *money* but from where ? Most of it has been used already and given to people and the US itself is in major debt. So Biden plans on increasing the tax , which would be the first major increase since 1993 , which is extremely weird. The wealthiest Americans and the biggest cooperations now would have to pay more tax!! I do think this is long overdue and should be done but people of the middle class should be exempted from this , , more specifically people without a job.
What do you think ?
Is this a right move ?
Ofcourse it would surge the unrest amongst people and they might be on the streets anyways how should the Government handle this ? Should the major tax hike be done in small steps?

https://www.foxbusiness.com/economy/biden-reportedly-planning-first-major-tax-hike-in-next-economic-package

I don't think it will be an overhaul of the current taxation system that people have in US. Otherwise, it would have negative consequences and Biden is perfectly aware of this. So I don't see any drastic changes are coming.

However, it may be possible that he will add a surcharge on the WHNI individuals which is already an acceptable practice and available in many countries. Also a corporate tax increase is unlikely to happen because it would only increase the cash outflow from the corporate accounts and increase their burden which could result US companies to send more job to developing countries like India or China.

So if Biden is really serious about creating more jobs, he would refrain from increasing corporate tax. However, let's wait for the actual thing to come out!

[bassbity]

the taxation mechanism is regulated by the tax collection agency and all who work will have different tax collections. I see Biden hasn't taxed those who don't work. However, that is more clearly governed by a bill that the current Biden administration will soon be drafting.
I know there are several professions in America that have been determined to get tax increases, including:

1. Doctors, experts such as notaries, architects, lawyers, actuaries, consultants and accountants.
2. Advertising agencies
3. Multilevel marketing, and direct selling.
3. Movie stars, commercials, comedians, musicians, singers, directors, and film crews.
4. Sportsman
5. Insurance agents, and more.
Then for those who are unemployed and who do not have a place to live, it is still the obligation of local governments around America to prepare housing facilities.

[aoluain]

The Pharmacist is right and I along with others have said this already, the trillions of dollars
of stimulus has to be paid back sooner or later. There will be pain to follow all this free money.

To summarize, these are the proposals:

1. Increasing the corporate tax rate to 28% from 21%
2. Increasing the income tax for those who earn more than $400,000 per year
3. Increase in estate tax (not sure how much)
4. Increase in long-term capital gains tax for those with annual income of >$1,000,000 (not sure how much)

All of these will have negative consequences. If they increase the corporate tax, then the unemployment issue will get even worse. On paper, the democrats are claiming that they are taxing the rich. But the rich have most of their assets in offshore tax havens and this measure will end up mostly targeting the middle class.

The ideas are probably correct but the application may not yield the desired results.

There are some wealthy individuals as we know who have migrated some of their
wealth into Bitcoin, will these new taxation laws drive more wealth into Bitcoin?

 

[stompix]

He's comin', he's comin', He's here, The taxman is here....

Common, was there anyone foolish enough to think there will be no tax hikes?
It's just the beginning, as all so-called democrats on both sides of the Atlantic like to do, at first the taxes will be targeted at the evil companies, the evil rich, the people that make money out of financial transactions and not working with their hands in the muddy field like real communist workers.
But then, to them and their voters just like in every damn situation in the last century, that money will not be enough.
So here comes the steel spiked rectal probing for the middle class, and then the flogging for the already poor who will understand what's poverty not on US terms but URSS equivalent.

Grabbing popcorn and everyone should pack a few bags, with the inflation that will come the caramel one will be as expensive as foie gras.

You realize that Americans have had to pay tax on internet purchases for only a few years now, right?  That, IMO, was a major taxation event in itself.

VAT bruh! VAT on everything! 25%!When this one will get implemented you will look back at that and think of it as good times.

You might know how AOC is always talking about Denmark how great that country is?
Wait till someone in the Democrat party comes with the idea of copying the tax system on registering a car here.
Those trillions have to be paid by someone, lucky for you have a cool bike!

[bryant.coleman]

There are some wealthy individuals as we know who have migrated some of their
wealth into Bitcoin, will these new taxation laws drive more wealth into Bitcoin?

It is not going to matter. Whether they are storing their wealth in the form of Bitcoin, Bullion, Equity or real estate, they need to pay the capital gains tax at the time they sell these assets. I don't think that demand for Bitcoin is proportional to the increase in taxes. On the other hand, it is proportional to the inflation of US Dollar. For those who want to hide their wealth, Bitcoin is obviously one of the better choices.

[fiulpro]

You realize that Americans have had to pay tax on internet purchases for only a few years now, right?  That, IMO, was a major taxation event in itself.

And though I haven't read anything in detail about what Biden plans to do as far as hiking taxes, it would come as no surprise if he does indeed do that.  I keep writing that all of this Monopoly money and stimulus and quantitative easing has to be paid for somehow, and if it isn't through increased taxes I don't know how else it would be done.  Sounds like he's trying to get ahead of all of the debt that keeps accumulating, but who knows.  I never claimed to be able to see into the minds of politicians.

Regardless of what Biden does as far as tax policy, I'm glad he's president and not Trump.  I don't think the country could have taken another four years of that psychopath.

Haha exactly I refrain from such comments but I do believe that what the US economy is just for a show, they keep taking debts and at the end of the day the rich does not pay taxes and the poor people are dying due to the burden of debts and student loans.

How excessively sad it is.

Right now they do need better job opportunities which would only start if the Government institutions starts working like how they are supposed to go. The taxes are essential they are not scams of extortion money. One need to pay some to make sure that the government runs on track and Donald Trump was just using the country's money to lure out people to vote for him. That highly manipulative and see the state that US is in right now , not only did the cause economic upset but at the same time it would burden Biden and people will blame him. "Why you making us pay taxes now" things like this !

It's all a big irony.

[Ozero]

To summarize, these are the proposals:

1. Increasing the corporate tax rate to 28% from 21%
2. Increasing the income tax for those who earn more than $400,000 per year
3. Increase in estate tax (not sure how much)
4. Increase in long-term capital gains tax for those with annual income of >$1,000,000 (not sure how much)

All of these will have negative consequences. If they increase the corporate tax, then the unemployment issue will get even worse. On paper, the democrats are claiming that they are taxing the rich. But the rich have most of their assets in offshore tax havens and this measure will end up mostly targeting the middle class.

Nevertheless, the tax needs to be increased, and these unpopular measures should have been taken earlier by Trump, , because the US economy cannot withstand such a colossal load. Many here criticize governments' over-printing of paper money. But after all, there is no other way, where to get money and at the same time not to increase inflation. Trump, in the eyes of Americans, wanted to be a good president and did not dare to do so. And the debts continued to increase. Therefore, Biden will have to do this in order to improve the economy. In connection with the coronavirus pandemic, which has been going on for a year now, life has become harder for everyone, not only for Americans.

[Sithara007]

Nevertheless, the tax needs to be increased, and these unpopular measures should have been taken earlier by Trump, , because the US economy cannot withstand such a colossal load. Many here criticize governments' over-printing of paper money. But after all, there is no other way, where to get money and at the same time not to increase inflation. Trump, in the eyes of Americans, wanted to be a good president and did not dare to do so. And the debts continued to increase. Therefore, Biden will have to do this in order to improve the economy. In connection with the coronavirus pandemic, which has been going on for a year now, life has become harder for everyone, not only for Americans.

It has nothing to do with trying to contain the federal debt. I am 100% sure that the 4-year term from Biden will see a much larger increase in federal debt, when compared to the same under 4 years of Donald Trump. Trump was able to manage the financials even without increasing the taxes. And Biden is unable to manage them, despite raising the taxes. That is the difference between the two. Life hasn't become harder. But it will definitely become harder once Biden ends his term in 2024.

[mu_enrico]

Raising taxes has always been an unpopular decision because people don't like paying. Anyway, I'd like to comment on the budget management side. It's nice to get more revenue, more money for productive government spending, or paying debts. BUT, I smell the taxpayers' money will be used to fund perks for illegal aliens or stupid stuff as we talk about the dementia man plus his woke far-left army.

I'll grab my popcorn and watch from the other side of the world, lol.

[nullius]

The Pharmacist is right and I along with others have said this already, the trillions of dollars
of stimulus has to be paid back sooner or later. There will be pain to follow all this free money.

Nonsense!  The government can spend unlimited amounts without taxation, simply by creating more money.

And that is how hyperinflation happens...

As we all know people did vote twice in a row for trump and if also was for a reason :

I think there were many other other reasons why people voted for Trump.  Trump was a moderately corrupt president who, I believe, sincerely wanted to preserve America.  Biden is totally corrupt, and he almost openly wants to wreck America for a globalist-internationalist agenda.

The wealthiest Americans and the biggest cooperations now would have to pay more tax!! I do think this is long overdue and should be done but people of the middle class should be exempted from this , , more specifically people without a job.

That’s not how it works.  No matter what the rhetoric, these types of tax increases always impose the heaviest burdens on the middle class and the working class.  Unfortunately, the voters who embrace these types of policies are too stupid to foresee the results.

What do you think ?
Is this a right move ?

Yes, I think that it is the right move because America is a bad country that should destroy itself ASAP.  The suicide of the American Empire will be a benefit to the whole world.

Americans may disagree.

[bryant.coleman]

Yes, I think that it is the right move because America is a bad country that should destroy itself ASAP.  The suicide of the American Empire will be a benefit to the whole world.

Americans may disagree.

LOL.. in all probability, by the end of Biden's term China will be the largest economy in the world, overtaking the United States. The mounting federal debt will drag down the United States, and an increase in corporate tax will make it much worse. The COVID 19 pandemic has made things relatively easy for China. Their economy is now back on track, while the United States continues to suffer from 4-digit deaths every day as a result of the virus.

[davis196]

The wealthiest Americans and the biggest cooperations now would have to pay more tax!! I do think this is long overdue and should be done but people of the middle class should be exempted from this , , more specifically people without a job

Unemployed people don't pay taxes in any country in the world,not just the US.Learn how the tax system works.
I'm not a leftist,but yes,the wealthiest people in America should pay higher taxes and yes,the giant corporations should pay more.I'm not even a socialist,but the inequality in the USA is insane.
No,the middle class and the working class shouldn't pay higher taxes and they will not pay higher taxes.
I'm not a big fan of Biden and the Democrats,but this would be a good thing to do.The problem is the rich people and big corporations will try to hide their profits and move them outside the US.The IRS will have more work to do.

[Mauser]

I think these tax rate increases are very dangerous in current times. Sure the government needs always money, but there is a huge downside risk involved. The new stimulus package from Biden is expensive and needs to be paid somehow. Most companies are still hurting from the corona pandemic. Increasing their tax burden will just make it worse. And we also don't know if there is a 3rd wave coming or not. Who knows how severe the pandemic will be this year.

[NeuroticFish]

To summarize, these are the proposals:

I will emphasize the word "proposals".
Politicians tend to be scared of increasing the taxes. Corporations fund the election campaigns, population are the voters and the main goal of politicians is to get (re)elected.
All in all, I think that all those proposals will be greatly reduced before getting voted.

[Kittygalore]

I think these tax rate increases are very dangerous in current times. Sure the government needs always money, but there is a huge downside risk involved. The new stimulus package from Biden is expensive and needs to be paid somehow. Most companies are still hurting from the corona pandemic. Increasing their tax burden will just make it worse. And we also don't know if there is a 3rd wave coming or not. Who knows how severe the pandemic will be this year.

No it isn't bad if the ones that are going to be taxed are the big businesses like Amazon, Facebook and other companies, not to mention that rich individuals need to be taxed to because they do not contribute anything to the society and they almost have the say on what to do for our future despite not contributing that much to taxes. The only companies that are hurt in this pandemic are the family owned and small business but most companies have already recovered so I think that these tax hike is a good thing but only if it is used not for military spending.

[Twentyonepaylots]

Taxation should be adjacent to the profits that a certain individual or an entity can create. There, I said it. I'm tired of seeing people paying too big of a percentage off of their regulsr salary while big companies out there aren't even paying taxes because they are "exempted". I believe this could help jumpstart government funding because what is 12 million dollars from a multibillionaire like Jeff Bezos compared to 12 million dollars from let's say 120000 Americans? It shouldn't be that hard to implement, and if the government is really for the people, this shouldn't be a big problem for them.

[btc78]

Taxation is the Main area where the government is having their funds for the goodness of the country so Hiking or increasing the Tax per individual specially for the Largest company in the world is necessary .

America Now is suffering in too much pain from Economic problem so why put another taxation ?

The only problem is if even the smallest worker will be given an increase and for me this is a NO NO chance at this moment of time as the Hurt of pandemic still existing in everyone

That's All Biden has to say.