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. This is apparently a good plan to the Democrats who are staring down the barrel of huge midterm losses and widespread unpopularity over its policies.
According to the New York Post, the trillion-dollar proposal being mulled over by the House would skyrocket the top tax rate as told by analysts:
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.
Developing Story - Trump administration oversaw a RADICAL change to the tech world… one that could unleash a huge wave prosperity… and wealth creation in the near future. Find Out More
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, which carries no state tax, will see tax rates still hit 51.4 percent.
The wealthy would be punished the hardest as their households would face a five percent surcharge on modified adjusted gross income above $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.”
As it stands, the American economy is in the toilet and instead of fishing it out, Biden has his hand on the flusher.
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.
With hyperinflation driving costs up, this oppressive increase on taxes is only going to reduce the household income of Americans by leaps and bounds. 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.