President Joe Biden will announce the largest tax hikes in a generation, which a Democrat turned Republican said will send the economy into a “spiral for death,” Fox Business reported.
Treasury Secretary Janet Yellen said the first tax hikes since former President Bill Clinton’s in 1993 will aim to reduce structural inequities, fight global warming, and pay for a massive green-energy infrastructure bill, without relying on further deficit spending, Newsmax reported.
The proposed tax increases would repeal much of former President Donald Trump‘s 2017 Tax Cuts and Jobs Act.
Biden plans to raise the corporate tax rate to 28 percent from 21 percent.
Trump’s tax legislation cut the corporate rate from as high as 39 percent to 21 percent.
Biden has also proposed removing tax breaks for small businesses, raising income taxes for persons with annual incomes higher than $400,000, broadening the scope of death taxes, and increasing the capital gains tax for persons annually earning more than $1 million.
The Biden administration has rejected Sen. Elizabeth Warren‘s, D-Mass., call for a wealth tax.
The Tax Policy Center found that the plan Biden proposed while campaigning would increase revenue by $2.1 trillion over 10 years, though the actual offer could be lower.
Rep. Jeff Van Drew, R-N.J., who became a Republican over his opposition to the impeachment hoax, said Biden’s “nightmare” tax plan will destroy the “best economy we ever had.”
“We are literally—with this and with almost everything else we’re doing—just completely going backwards,” Van Drew said. “When I ran, I talked about a strong America that would have a strong supply chain, really make sure that our military is strong, that our manufacturing is strong, that we’re producing more energy than anybody, the number one country in the world.”
Van Drew warns that “literally every bad thing that I said was going to happen is now happening.”
“Corporations are not going to want to stay in the United States,” he said. “People are not going to have as much disposable income. It’s just nothing good about it…That is a spiral for death for the economy.”
