Guess who’s going to pay for the $1.9 trillion COVID relief package President Biden just signed? YOU ARE!
Well, to be more accurate, we are.
It turns out, somebody has to pay for the nearly $2 trillion in spending the Democrats have decided is best for everybody… as well as the forthcoming $2 to $4 trillion infrastructure and stimulus bill they’re preparing to roll out next.
And that “somebody” is us.
Spoiler Alert: We’re going to pay far more in taxes over the next few years than the small $1,400
payday loan “relief payment” you may (or may not) receive from the relief package.
A trillion here, a trillion there… pretty soon you’re talking about real money!
Here are a few of the early details:
Biden is expected to propose a series of tax increases, including repealing parts of Donald Trump’s 2017 tax law that resulted in most Americans seeing more in their paychecks, to help fund the latest proposal.
Among Biden’s ideal proposals in the tax hike is raising the corporate tax rate by 7 per cent from 21 per cent to 28 per cent.
He also plans to raise the income tax on those earning more than $400,000 and implement a higher capital-gains tax rate for individuals earning at least $1 million per year to help fund his next spending package.
Also on the docket to get Americans to pay for the plan is scaling back tax preferences for businesses and expanding the reach of the estate tax.
Biden’s Treasury Secretary Janet Yellen said Sunday that the administration has yet to decide if it will move forward with a wealth tax.DailyMail.co.uk
These proposed tax increases are a dramatic change from the Trump administration. Rather than increase taxes, Trump worked to lower them across the board. Less than 2 months into Biden’s term, he’s trying to completley undo what Trump did.
Trump’s tax cuts led to most Americans receiving more take home pay and resulted in an average increase of $90 in tax returns from 2017 to 2018.
With the former president’s income tax cuts, Americans immediately saw somewhere between a 0.4 per cent and 2.9 per cent increase in their paychecks after taxes.
Republicans are more than likely to pounce on the plan, painting Democrats as the Party of higher taxes.DailyMail.co.uk
If Biden is able to push through all these tax changes, it will be the first major federal tax hike since 1993.
Think about that. It’s been 28 years since the last major tax hike at the federal level. I think it’s safe to say that many Biden supporters are going to be in for a rude awakening once these tax hikes take a bite out of their paychecks.
Here are some of the reactions on Twitter…
How do you feel about Biden’s planned tax increases? Leave a comment below and let us know.