Biden planning first tax hike(major) since 1993

[Koro-Sensei]

In this pandemic, more people are suffering specially the poor ones. I think this tax hike must be implemented to those who income more during the pandemic which is the rich ones. Help those who were critically hit and probably vaccinate all to recover the economy.

[Bttzed03]

Tax incentives might be the better proposal right now to help these businesses recover their losses brought by the pandemic. Tax hikes can be discussed after two or three years.

Tax hikes shouldn't target the general population,

Although indirectly, tax hikes on companies and individuals on the higher income brackets will always affect the general population. Impose higher tax on a business or a self-employed and they will also find a way to pass it on consumers of their products and/or service. This process will continue until it reaches the general population (end consumers).

[uneng]

It is weird to watch the republicans and right wingers try to make Biden look leftist, it is kind of funny. I am a true progressive, the ones that you call communist (no, I am not a communist, I am a progressive, there is a HUGE difference, I hate communist countries) and Biden is closer to you guys then to me, it is weird to see just because he is a democrat you guys think he is a leftist.

Of course taxes will be increased for people who do not work and just make tens of billions of dollars a year, not only that is a good thing, but many republicans wants that as well, taxes higher for them should mean taxes lower for you, that's the point of it, and I think Biden may increase taxes for everyone, rich or poor alike, and that is not something any progressive would want, why would I want a country where even the poor would pay high taxes? What is so socialist about that? I want a nation that taxes people who make 1+ billion dollars at a very very high rate, and people who make under 100k nearly nothing, that is what progressives want.

This is the eternal excuse that the democrats make. No one in the United States make "tens of billions of dollars" a year and if they do, then they will be intelligent enough to move their earnings to offshore tax havens. The details of Biden tax plan are already out and according to it there will be an increase in income tax for everyone who earns more than $400,000 per year. Now there is a huge difference between earning "tens of billions" a year, and earning $400,000 per year.

Actually it's 400,000$ per family. If two individuals living together earn 200,000$ yearly each, there will be already a tax hike over them. During the campaign Biden told he wasn't going to increase taxes on people who earned less than 400,000$ yearly. But it looks like he and his team have already found a smart way to overcome this issue to include more people on their calculations, consequently  increasing the revenue.

It's like those pigs from *Animal Farm* Orwell's book. Always changing the past speechs and rules to adapt to the present personal needs.

[Sithara007]

Although indirectly, tax hikes on companies and individuals on the higher income brackets will always affect the general population. Impose higher tax on a business or a self-employed and they will also find a way to pass it on consumers of their products and/or service. This process will continue until it reaches the general population (end consumers).

Agreed. Corporate tax is being increased by one-third, from 21% to 28%. This will not only cause the Americans to pay a higher rate for the products they purchase, but will also make American products less competitive compared to those imported form countries such as China. One of the reasons why Trump reduced the corporate tax was to create more jobs within the United States, and he was successful in that up to a certain extent. Combined with the (proposed) change in minimum wages, the unemployment issue will get worse.

[jaysabi]

It is weird to watch the republicans and right wingers try to make Biden look leftist, it is kind of funny. I am a true progressive, the ones that you call communist (no, I am not a communist, I am a progressive, there is a HUGE difference, I hate communist countries) and Biden is closer to you guys then to me, it is weird to see just because he is a democrat you guys think he is a leftist.

Of course taxes will be increased for people who do not work and just make tens of billions of dollars a year, not only that is a good thing, but many republicans wants that as well, taxes higher for them should mean taxes lower for you, that's the point of it, and I think Biden may increase taxes for everyone, rich or poor alike, and that is not something any progressive would want, why would I want a country where even the poor would pay high taxes? What is so socialist about that? I want a nation that taxes people who make 1+ billion dollars at a very very high rate, and people who make under 100k nearly nothing, that is what progressives want.

This is the eternal excuse that the democrats make. No one in the United States make "tens of billions of dollars" a year and if they do, then they will be intelligent enough to move their earnings to offshore tax havens. The details of Biden tax plan are already out and according to it there will be an increase in income tax for everyone who earns more than $400,000 per year. Now there is a huge difference between earning "tens of billions" a year, and earning $400,000 per year.

Actually it's 400,000$ per family. If two individuals living together earn 200,000$ yearly each, there will be already a tax hike over them. During the campaign Biden told he wasn't going to increase taxes on people who earned less than 400,000$ yearly. But it looks like he and his team have already found a smart way to overcome this issue to include more people on their calculations, consequently  increasing the revenue.

It's like those pigs from *Animal Farm* Orwell's book. Always changing the past speechs and rules to adapt to the present personal needs.

Those numbers are always talking about as household income, if you thought otherwise that's on you for not understanding since that's the common way taxes are always talked about.  Biden always said households making more than $400,000.

[bryant.coleman]

Those numbers are always talking about as household income, if you thought otherwise that's on you for not understanding since that's the common way taxes are always talked about.  Biden always said households making more than $400,000.

For someone who earns $400,000 per year, the applicable state income tax in California comes to 11.3%. With the latest increase in federal income tax, California residents will be paying more than 50% of their income as tax and the net take away will be less than $200,000. And for cities such as Los Angeles and San Francisco, given the high cost of living, the tax increase will have a large negative impact on the quality of life.

[zanezane]

For someone who earns $400,000 per year, the applicable state income tax in California comes to 11.3%. With the latest increase in federal income tax, California residents will be paying more than 50% of their income as tax and the net take away will be less than $200,000. And for cities such as Los Angeles and San Francisco, given the high cost of living, the tax increase will have a large negative impact on the quality of life.

I don't know what to say about this tax thingies but if I may ask you about paying more taxes if you know that the taxes are going to be used on things that will help other people like increase in minimum wages, housing loans for minorities, and other social issues, do you think that you are going to pay that taxes. Because for me, I am willing to pay more taxes if I know that it isn't going to be wasted on military spending and the taxes goes where it is really needed.

[Vishnu.Reang]

I don't know what to say about this tax thingies but if I may ask you about paying more taxes if you know that the taxes are going to be used on things that will help other people like increase in minimum wages, housing loans for minorities, and other social issues, do you think that you are going to pay that taxes. Because for me, I am willing to pay more taxes if I know that it isn't going to be wasted on military spending and the taxes goes where it is really needed.

If the government wants to help poor people, then they should scale down on wasteful expenses. Biden has splurged hundreds of billions of USD on groups that explicitly support him, such as the teachers unions. In fact a majority of the $1.9 trillion stimulus is earmarked for such unions and failed inner city areas, which are predominantly Democrat leaning. Taxing people at a rate of 50% or 60% is insane. If you are fine with it, then go ahead and pay your taxes, but don't expect others to be silent.

[zanezane]

~

If the government wants to help poor people, then they should scale down on wasteful expenses. Biden has splurged hundreds of billions of USD on groups that explicitly support him, such as the teachers unions. In fact a majority of the $1.9 trillion stimulus is earmarked for such unions and failed inner city areas, which are predominantly Democrat leaning. Taxing people at a rate of 50% or 60% is insane. If you are fine with it, then go ahead and pay your taxes, but don't expect others to be silent.

I don't think that paying teachers union is a wasteful expense, teachers in my country yearn to earn bigger salaries and the teachers in US have that privilege which is good because it helps teacher make more quality education because they know that their efforts are worth it. So you are alright not paying an increased tax even if it meant that the tax is going to help in making the increase in minimum wage because I wouldn't mind paying as long as someone doesn't have to work two jobs because the minimum wage is so low.

[Silberman]

For someone who earns $400,000 per year, the applicable state income tax in California comes to 11.3%. With the latest increase in federal income tax, California residents will be paying more than 50% of their income as tax and the net take away will be less than $200,000. And for cities such as Los Angeles and San Francisco, given the high cost of living, the tax increase will have a large negative impact on the quality of life.

I don't know what to say about this tax thingies but if I may ask you about paying more taxes if you know that the taxes are going to be used on things that will help other people like increase in minimum wages, housing loans for minorities, and other social issues, do you think that you are going to pay that taxes. Because for me, I am willing to pay more taxes if I know that it isn't going to be wasted on military spending and the taxes goes where it is really needed.

But what governments seem to forget is that by taxing the population so harshly then the desire of people to keep earning more money decreases significantly, think about it, with an effective tax rate of 50% this means that on real terms you work for the government for free for 6 months and you only receive profits from the next 6 months you work, this is ridiculous, this decreases productivity and over the long term this will be seen in the GDP of the country.

[Sithara007]

But what governments seem to forget is that by taxing the population so harshly then the desire of people to keep earning more money decreases significantly, think about it, with an effective tax rate of 50% this means that on real terms you work for the government for free for 6 months and you only receive profits from the next 6 months you work, this is ridiculous, this decreases productivity and over the long term this will be seen in the GDP of the country.

I don't know whether people will be less productive when the tax rates are increased. In other countries, tax evasion increases when something like this happen. But since the IRS is very strict in the United States, the chances of tax evasion are very small. One direct impact may be on capital gains. People may postpone or delay realizing their capital gains. Eventually they need to pay the capital gains tax, but with lower taxes they will be selling their capital assets more frequently.

[Wind_FURY]

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.

Trump had one term, not two.

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 U.S. government DOES NOT need money, and IS NOT increasing taxes because it needs money. The Fed can always BRRRRR print trillions for the government, BUT once all that money does into circulation, INFLATION. What do they do to decrease the money in circulation? HIGH TAXES. - That’s Modern Monetary Theory.

[Vishnu.Reang]

The U.S. government DOES NOT need money, and IS NOT increasing taxes because it needs money. The Fed can always BRRRRR print trillions for the government, BUT once all that money does into circulation, INFLATION. What do they do to decrease the money in circulation? HIGH TAXES. - That’s Modern Monetary Theory.

If they increase the property taxes, estate tax, inheritance tax.etc, then it will have a bigger impact than increasing the income tax. Because income tax disproportionately affect the middle class, as the super-rich use various loopholes to avoid it. But the super-rich never cease purchasing luxury properties and private islands and the government should target these if they are being honest. Obviously they will never do that, else their main campaign donors will get angry.

[ivankoh]

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

As a rule, between tax exemption or collection and tax refund for the poor is really a mess, losing fairness in comparison.  Although, among the meaningful principles that can be tested through parliamentary or bicameral representatives - the upper house, I don't think it is the right way to reduce inflation and balance the state of the economy.  after the pandemic 19. The tax increase had many mixed effects, causing a bad psychological state, I think Biden and the white house will control the situation through many steps and alternating between appropriate intervals.

[stompix]

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

Trump had one term, not two.

But there were still tens of millions who voted twice for him, right? He didn't get elected the second time but he did get the votes of those who thought he was a better option.

The U.S. government DOES NOT need money, and IS NOT increasing taxes because it needs money. The Fed can always BRRRRR print trillions for the government, BUT once all that money does into circulation, INFLATION. What do they do to decrease the money in circulation? HIGH TAXES. - That’s Modern Monetary Theory.

You don't need to decrease the money in circulation to reign back inflation, and taxation won't be the best way to do it, the solution is to simply counter inflation with increased production and consumption, more goods being produced means the price is kept low, more productions means more jobs, more jobs lead to more money in the economy naturally which would render the effect of hose printed trillions less severe than we anticapate.

How will they do that, I don't see any serious plans for it, and time is running out.

But the super-rich never cease purchasing luxury properties and private islands and the government should target these if they are being honest.

And once you tax the hell out of those people will simply buy and register them in a different country and all those workers who were getting paid to produce those goods, the companies producing those, and the investors of those will be hit. Everything is tied together in an economy, you can't take a single measure that will affect only one link and not the others.

I don't know whether people will be less productive when the tax rates are increased. In other countries, tax evasion increases when something like this happen. But since the IRS is very strict in the United States, the chances of tax evasion are very small.

IRS claims they are losing 1$ for every 6$ they collect in tax evasion. Not avoidance, evasion!

[Wind_FURY]

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

Trump had one term, not two.

But there were still tens of millions who voted twice for him, right? He didn't get elected the second time but he did get the votes of those who thought he was a better option.

The U.S. government DOES NOT need money, and IS NOT increasing taxes because it needs money. The Fed can always BRRRRR print trillions for the government, BUT once all that money does into circulation, INFLATION. What do they do to decrease the money in circulation? HIGH TAXES. - That’s Modern Monetary Theory.

You don't need to decrease the money in circulation to reign back inflation, and taxation won't be the best way to do it, the solution is to simply counter inflation with increased production and consumption, more goods being produced means the price is kept low, more productions means more jobs, more jobs lead to more money in the economy naturally which would render the effect of hose printed trillions less severe than we anticapate.

That’s the proper way, BUT it would take a very very long time. Like how the money was pumped in circulation without real production, money must come out without increased production/consumption.

How will they do that, I don't see any serious plans for it, and time is running out.

Modern Monetary Theory is the plan. Check the link at OP.

Plus if only there was a type of “sound money” that we can HODL and park value to deal with inflation.

[Kong Hey Pakboy]

This tax hike is just an excuse to make more money to create more bombs to use in offensives in Middle East and funding the paramilitaries there, no matter what he says about this tax hike that it will be for the welfare of the people, it will be an empty promise as long as they are still funding billions of taxpayers dollars into military and the rich people always get away from paying their taxes by lobbying and tax exemptions.

[el kaka22]

I believe there is a big problem with partisanship in USA, I am looking at it and I see that only a few people will be disturbed by this while tens of millions of people will be profiting from this and even with that I am seeing a lot of people are unhappy about it. Why? There are some who are afraid about the future, which is weird because they are afraid and scared and angry about something that didn't happen, if Biden charges more taxes to "everyone" you can then get mad at him, but dude suggested a tax on rich people to help the poor people, if that is the topic why talk about a potential future that is not here just right now.

That means we are not really doing that bad with this current idea, it is so good that people can't even make an argument for it right now and only what it "may" mean for the future. Long story short, I think this should be liked by 90% of Americans but you guys are half and half on this as well.

[StartupAnalyst]

Are you surprised with this? It's logically that if people had got money for free they have to return that money back. In my country politicians usually return money by increasing prices on municipal services and food prices in shops so it becomes more and more expensive to live. Probably in USA the situation is similar. By the way the amount of debts really should depend on people’s income. Wealthy should pay more and the poor should pay less (or they’ll totally bankrupt). To my mind government of any country don't need the poor they need people that are able to work, so if Biden will provide poor people with well-paid works will benefit all.

[Sithara007]

I don't know whether people will be less productive when the tax rates are increased. In other countries, tax evasion increases when something like this happen. But since the IRS is very strict in the United States, the chances of tax evasion are very small.

IRS claims they are losing 1$ for every 6$ they collect in tax evasion. Not avoidance, evasion!

Still it is 14%. In my country (India) it is estimated that the actual amount of income tax owed is more than 2 times the annual collection, meaning an evasion rate of more than 50%. And I am sure that this is the case with most of the developed nations. The tax rates are kept extremely high (43% for the top slab), and government has made gambling, crypto trading.etc as illegal. And there is a stupid loophole to make agricultural income tax free. A lot of people use this loophole to avoid paying taxes on their income from other sources (they just show it as agricultural income).