(ConservativeFreePress.com) – The Tax Foundation, an advocate group calling for lower taxation, determined that President Biden’s newly announced plan to increase taxes for corporations and wealthy Americans could bring down the country’s economic output, wages and cost the US economy around 800,000 full-time jobs.
Biden’s budget blueprint for federal spending in the 2025 fiscal year includes policies that would end up further complicating taxation, while also increasing the amount of spending in the tax good for different policy goals that are unrelated to revenue collection. The output is expected to go down by 2.2 percent in the long run, while around 788,000 full-time jobs are going to be cut. Wages are also expected to be reduced by 1.6 percent.
Biden has included in his proposal a minimum 25 percent tax rate that will affect all households that are worth over $100 million. This will increase the capital-gains tax rate, while it will also quadruple the corporate stock and buyback tax to 4 percent. There is also an increase of 28 percent on corporate tax, while also bringing up the Medicare tax that many wealthy Americans pay for. Finally, it will also include a global minimum tax that all multinationals will be required to pay, and provide a solution to the carried interest loophole that hedge fund managers and private equity have been exploiting.
The federal deficit under the new tax increases is expected to be reduced by around $3 trillion. The additional funds are going to help cover the costs of new programs that President Biden has proposed, including a monthly tax credit that will assist homeowners with paying their mortgage, while also lowering drug prescriptions and providing child care subsidies.
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