(ConservativeUnit.com)- Everyone knows that the Democrats like to raise taxes, but a new report suggests that Joe Biden could embark on the biggest tax hike in American history. According to the Penn Wharton Budget Model, which is a nonpartisan group from the University of Pennsylvania’s Wharton School, Joe Biden’s official platform would result in a tax hike of $3.4 trillion on both corporation and American citizens over the next ten years.
The study, which was released on Monday, also shows that Biden would increase federal spending by some $5.4 trillion, which is around 24% of the national GDP. Biden would increase that spending by 2030 – well, Kamala Harris would, given he probably wouldn’t stick around for very long.
Fox News reports how the Penn Wharton Budget Model found that Biden’s spending plan would cost twice as much as what Hillary Clinton proposed back in 2016, making it even further far-left and significantly less affordable. It would be funded by a series of new taxes, most notably by an increase in corporate taxes that were slashed by President Donald Trump.
When President Trump made those tax cuts, joblessness decreased (including black and Hispanic unemployment) and the economy boomed. Under Joe Biden, however, corporations would have room to make less profit and wages may once again fall.
Among the many other things he promised to do on “Day One” of a Biden presidency, the Democratic nominee has pledged to increase the current 21% tax rate up to 28%, which would bring in $1.4 trillion from regular American taxpayers.
Yes, regular taxpayers. Not corporations.
Biden claims that he would only target households that earn over $400,000 per year, but would also repeal the tax code changes made by President Trump in the 2017 Tax Cuts and Jobs Act. Those were the tax cuts that put more money in the pockets of the lowest-paid. Biden would also raise the existing top income tax bracket from 37% to 39.6%.
In short, Biden would reduce the incentive for American workers and business owners to earn more.
The Wharton study did confirm that some 80% of the tax hikes proposed by Biden would only hit people in the top 1% of earners, but the remaining 20% would affect people who earn less and the trickle-down effect could mean low earners get paid less.
At a time when the American economy needs stimulus to get moving after months of lockdown, do more taxes really make sense?