Study of Biden Tax Plan Shows Average Families Will Lose a Fortune
A new study from Stanford University’s Hoover Institution reveals that Democrat Joe Biden’s economic plan would have a damaging impact on household income and job growth.
“We estimate that the full Biden agenda will reduce long-run real GDP per capita by more than 8 percent as a result of reducing full-time equivalent employment (FTEs) per person by 3 percent, the capital stock per person by 15 percent and total factor productivity by 2 percent,” read the study, published Sunday.
A decade from now, median household income could very well decrease by $6,500.
“Relative to the [Congressional Budget Office’s] 2030 projections for these variables,” the study explained, “this suggests there will be 4.9 million fewer employed individuals, $2.6 trillion less GDP, and $1.5 trillion less consumption in that year alone.
Stanford study says that Biden’s tax & regulatory agenda would:
— Kill 5 million jobs
— Shrink the economy by $2.6 trillion
— Decrease consumption by $1.5 trillion
— Reduce median household income by $6,500https://t.co/4kRNRE8mYS
— Brad Polumbo ??⚽️ ?️? (@brad_polumbo) October 19, 2020
“Median household income in 2030 would be $6,500 less.”
A major reason why Biden’s agenda would be detrimental has to do with his proposal to increase the corporate tax rate to 28 percent.
Corporate tax hikes usually result in higher prices for consumers, lower wages and layoffs.
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In addition to middle-class families and businesses taking a hit in a potential Biden administration, higher-income earners would also be negatively impacted by tax hikes.
Those who make over $400,000 a year and live in the high-tax states of California, New York and New Jersey may face a combined tax rate of over 60 percent, CNBC reported.
The combined rate made headlines this week when rapper 50 Cent announced he’s voting for President Donald Trump.
?Yeah, i don’t want to be 20cent. 62% is a very, very,bad idea. ?i don’t like it ! #abcforlife nov 18 #starzgettheapp pic.twitter.com/y9TsSs0o6Q
— 50cent (@50cent) October 20, 2020
“The risk from Joe Biden’s policies isn’t that they will send the economy reeling right away,” The Wall Street Journal reported.
“The problem is that they will have a long-term corrosive impact by raising the cost of capital, reducing the incentive to work and invest, and reducing productivity across the economy.
“Americans will pay the price in a lower standard of living than they otherwise would — and that they deserve.”
While some no doubt wonder why we should care about tax hikes on the rich, they may forget that the wealthy tend to be the largest job providers and pay the most income taxes already.
As David Wessel of the Brookings Institution wrote in October 2019, “The rich generally pay more of their incomes in taxes than the rest of us. The top fifth of households got 54% of all income and paid 69% of federal taxes; the top 1% got 16% of the income and paid 25% of all federal taxes.”
If Biden wanted to actually make the tax system “fair,” he would propose a flat tax system, where everybody pays the same percentage of their income to the government.
But those who consider lower taxes their top issue are probably already voting for Trump.
Trump and a majority-Republican Congress passed the Tax Cuts and Jobs Act in 2017, resulting in most Americans getting a tax cut, according to The New York Times.
While it may sound good on paper for the wealthy and big businesses to pay their “fair share,” it almost never works out for the better.
This article appeared originally on The Western Journal.
