by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Elizabeth Elkind writes at FoxNews.com about a congressional warning about the impact of President Biden’s budget proposals.
The chairman of the House Ways and Means Committee is warning that the tax hikes in President Biden’s proposed budget would have a “devastating” effect on Americans across the country.
“It means a working-class (American) is going to have to pay more to put food on the table, clothes on their backs and gasoline in their cars, because this incredible spending will only fuel inflation. These Biden taxes will only reduce the take home pay for all Americans,” Rep. Jason Smith, R-Mo., told Fox News Digital in an interview Friday.
“Whether you make less than $400,000 a year or whether you make more than $400,000 a year, the policies within this proposal are going to be devastating.”
Smith was referring to one of the marquee points of Biden’s progressive fiscal 2024 agenda: an income tax hike from 37% to 39.6% on Americans whose earnings are in the top tax bracket. In total, the plan calls for more than $2 trillion in tax increases on the wealthy the White House claims will offset federal deficits by the same amount over 10 years.
Biden is also proposing to raise the corporate tax rate from 21%, where it was rolled back to during the Trump administration, to 28%.
Smith also pointed to the president’s proposal to roll back fossil fuel subsidies and other measures that House Republicans say would result in a $37 billion tax hike on the American energy industry. All told, these changes would trickle down to consumers, raising prices across the board.
“That will affect every American,” the chairman said, adding that Biden’s call to increase IRS funding by 15% after $80 billion was already granted by Biden’s Inflation Reduction Act last year would also make economic conditions tougher for Americans.