by Mish Shedlock, Mish Talk:
If Democrats win the trifecta with a clean sweep of the Senate, House, and White House in November, taxes would rise by $7 trillion over 10 years.
The House Ways and Means Committee reports The Biden Tax Hike Will Likely Exceed $7 Trillion.
I believe they mean would not will.
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Tax Details
- President Biden Quietly Pledges to Let Trump Tax Cuts Expire
- Sending Jobs and Companies Overseas with Higher Business Taxes than China
- Global Tax Surrender Allows Foreign Governments to Take American Tax Dollars
- President Biden’s proposal to raise the top rate to 39.6 percent goes after small business owners who pay their business taxes via their individual tax return – despite his pledge not to raise taxes on small businesses.
- A Tax on Wealth You Haven’t Even Earned Yet.
- Higher Prices for Energy Bills and an Energy Insecure America.
- An IRS That Would Terrify Godzilla
A friend of mine asked when will the tax hikes cause a recession. I replied never. I suspect my friend was confused over the title that said “will” it should say “would”.
I did not total up all of those details because I don’t believe it’s going to happen. However, It is a warning shot as to what would happen if Democrats did win the trifecta.
Biden’s Populist Budget
The Hill comments Biden’s populist budget marks the overdue end of trickle-down economics
Trickle-down refers to the idea that tax cuts for the wealthiest “trickle down” to the rest of us. It’s long been a popular idea in Washington, but it’s just not true. A few years ago, the London School of Economics studied 50 years of such “trickle-down” policies in 18 industrialized nations, including the U.S., and found that their only result was increasing the wealth of the already wealthy.
So how do we get prosperity for the rest of us? By taxing extreme wealth and investing those revenues in social goods like education, housing, food and health care. President Biden’s recently released federal budget plan follows that blueprint, putting the value of investing in American families and communities ahead of slashing taxes for the rich.
The budget for the fiscal year 2025 would generate about $5.3 trillion in revenues over the next decade. That’s a $388 billion boost compared to last year’s budget — and it all comes from fairer tax policies targeting wealthy individuals and large corporations. Households earning less than $400,000 would see no tax increases, with many seeing reductions.
The proposed budget invests $2.3 trillion towards essential public services for hard-working families while reducing the national debt by almost $3 trillion. That’s a great start toward filling critical investment gaps for families and communities.
Take housing. The National Low Income Housing Coalition reports a shortfall of more than 7 million affordable housing units for poor and low-income Americans. Biden is requesting $33 billion for the Housing Choice Voucher program, which currently helps over 2 million households afford housing and would expand access to homeownership for first-time homebuyers. His request will help to support the existing vouchers and add about 20,000 more.
Though much more is needed, this effort to reduce homelessness by providing access to safe affordable housing in a tight housing market — with high rent prices and often insufficient wages — is a step in the right direction.
Normally writers for The Hill are not nutzoid liberal like the above article.
But it’s not going to happen unless you think Democrats can pull off a trifecta.
Nonetheless, the budget is instructive as are CBO and Fed projections. I will have some comments on those projections Sunday or Monday.
Optimism reins supreme, and it won’t happen.
