Joe Biden is about to break another campaign promise. And a lot of people are going to be hurt by it. Here’s the story.
Candidate Biden, and subsequently President Biden, pledged that he would not raise taxes on families earning less than $400,000 per year. Now it turns out he’s going to do just that.
Nancy Pelosi is trying to corral together enough Democrat votes in the House to pass the “Build Back Better” or “Human Infrastructure” or “Social Welfare” bill, or whatever you want to call it. (Whatever you call it, it’s a truly horrific bill in my view.)
I’ve already discussed much of the lousy stuff in the bill in previous blogs, so I’ll focus my attention on its tax elements this week. The Tax Policy Center, which for the record is a liberal-leaning outfit, closely studied the legislation, and determined that rather than reducing taxes on the middle-class, it actually RAISES taxes on one-out-of-three middle class families.
Not only that, but rather than sticking it to the rich as Democrats have been claiming they want to do, 2/3 of people making over $1 million per year are going to have their taxes cut! How is that possible? Well, a lot of the millionaires and billionaires in America live in blue, not red, states. And as a result of the Republican “Tax Cuts and Jobs Act” from a few years back, the deductibility of state and local (SALT) taxes, was limited to $10,000 per year. Dems want to increase that deductibility from $10,000 to $80,000, which will cut taxes on the Democrats’ wealthy friends in high tax blue states, like New York and California.
Of course another way all of us, rich, poor, and middle-class folks, will be hit is through inflation. This huge multi-trillion dollar boondoggle-of-a-bill would push a huge amount of new cash out into the economy. This will result in more dollars chasing fewer available goods, causing virtually everything we buy to go up in price (inflation). That’s just like a tax.
Whether Joe Biden and Chuck Schumer and Nancy Pelosi want to call it a tax or not.
