by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Joseph Sullivan writes for National Review Online about the potential impact of a Joe Biden administration on tax burdens.
No one can doubt that Joe Biden plans to raise taxes on households earning over $400,000. The question is how the Biden-Harris tax plan, if implemented, would affect households earning less than $400,000. …
… The answer? Most households would face a tax increase under the Biden-Harris tax plan. In fact, … unless your household income is less than $45,600, there is more than a 90 percent chance that the Biden-Harris plan, if enacted, will raise your taxes. In the exact middle of the household income distribution, over 95 percent of households can expect a tax increase if the Biden-Harris plan becomes law. Overall, 82.6 percent of American households can expect a tax increase.
These estimates come from the Penn Wharton Budget Model at the University of Pennsylvania’s Wharton School of Business, not exactly a friend of President Trump’s economic agenda. …
… Doubt tends to be the natural response to statistics that surprise. But if these numbers surprise you, your natural doubt may here lead you astray. A chasm between public perception and reality on tax policy, according the New York Times, emerged during President Trump’s first term. “If you’re an American taxpayer, you probably got a tax cut last year. And there’s a good chance you don’t believe it,” Ben Casselman and Jim Tankersley, economics journalists at the Times, wrote in April 2019, about the effects of the Tax Cuts and Jobs Act. “To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law,” they conclude.
Now, Vice President Joe Biden is campaigning on a repeal of the legislation that produced a broad middle-class tax cut. He, like many who told you that the 2017 legislation didn’t cut your taxes, now claims this repeal won’t raise your taxes.