President Biden’s “Build Back Better” plan sounded clunky, to begin with, but it’s proving to be bad in both branding and practice as it seems his plan will raise income taxes to the highest in the developed world. It is a great plan for Democrats, who face massive midterm losses and widespread opposition over its policies.
The New York Post reports that the House is considering a trillion-dollar tax proposal. Analysts predict it will skyrocket top rate.
The $1.75 trillion proposal currently before the House of Representatives would end up raising the average top tax rate on personal income in the US to a whopping 57.4 percent, the highest in the 38-member Organisation for Economic Co-operation and Development, according to the analysis.
That’s up from the US’ current nationwide average top tax rate of 42.9 percent, which lands squarely in the middle when compared with the other OECD countries, according to the Tax Foundation, a Washington, DC-based think tank.
The new rate under Biden’s proposal would push the US top tax rate even higher than Japan’s notoriously cumbersome 55.9 percent average top income tax.
Don’t think living in a low-tax red state will save you either. Texas does not have a state tax. However, Texas’s tax rates will remain at 51.4 percent.
Wealthy people would suffer the most as they would have to pay a 5 percent surcharge for modified adjusted gross income over $10 million.
“As policymakers explore options to raise revenue, they should keep in mind how the US compares to other countries and what the economic effects might be,” the Tax Foundation analysis said.
“Raising the top marginal tax rate on ordinary income to the highest in the OECD will damage US competitiveness. It will also reduce incentives to work, save, invest, and innovate, with broad implications for the U.S. economy.”
It is clear that the American economy has gone to the toilet. Biden instead of fishing for it, will flush the toilet.
This is yet another decision from the Biden administration and Democrats that makes absolutely no sense unless you settle on the idea that the United States is currently being run by activists and not elected officials who know what they’re doing.
This oppressive tax increase will only reduce household income in America, as hyperinflation is driving up costs. If Democrats think this is going to go over well with a public that already is chanting obscenities about Biden wherever crowds gather then they’re delusional.
And it’s that delusion that will cost them even more seats in the upcoming midterms which already look dire for the party that bills itself as the friend of the working man.
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