Research: Not rich to get essentially the most out of Biden's tax and spending plans, particularly in crimson states
As Philip Bump of the Washington Post reported at the time:
Trump's vague phrase that he protects the non-rich but not the rich is not confirmed by the details. "The rich get a tax cut," writes our Heather Long. “They will only pay 35 percent of their income tax (up from 39.6 percent). Currently, this rate applies to income over $ 418,000. “So if you make $ 1,000,000, you save about $ 27,700 in taxes annually. In addition, it will cut the business significantly, which is obviously benefiting Trump through the Trump Organization (which is still cash in its pocket).
That was obvious – at least for us. A populist advocate, Trump cunningly put his Lilliputan thumb on the scales to help him and his wealthy cronies while insisting that he do exactly the opposite. Why? Because he's a goddamn sociopath, that's why.
Yes, people on lower incomes generally got a tax cut, but the lion's share of the benefits went to the already rich. This, of course, has always been the Republican strategy: slash taxes for the rich and throw crumbs at everyone else, while shrinking government programs that actually help these desperate crumb seekers. But Trump went out of his way to pretend his tax reform bill was designed to help the little guy, which it wasn't. Unless you specifically mean Barron Trump, who is now actually a giant.
Of course, Trump fans are unlikely to believe any of this – unless they can see and feel it in their own lives. And that is exactly what President Biden hopes to achieve with his American family plan.
And it's no wonder Republicans want nothing to do with the Biden Plan, as it has the potential to forever pull the sausage-making curtain back on the party. And by "sausage" I mean some terrible, plutocrat-friendly legislation, not Ted Cruz's line of Spicy Zodiac Chorizo Links.
Now that we see more details from Biden's plan, it's becoming increasingly clear that this is actually some kind of civic support plan that Trump was only pretending to accept. A new study from the The Institute for Taxes and Economic Policy shows that Biden's tax proposals – which he has insisted on all along – are aimed primarily at wealthy taxpayers – would do just that (surprise, surprise!). Imagine that.
As Yahoo! Finance reports Tuesday:
"The vast majority of the population will not see any tax increases," Steve Wamhoff, director of federal tax policy at the Institute of Taxes and Economic Policy and co-author of the report, told Yahoo Money. "This plan would really only ask the people who have been very, very successful and have done very well during recessions and pandemics. Ask the lucky few to pay more."
These Americans would increase their tax burden by an average of $ 159,000 in 2022 as Biden came up with key proposals to increase the capital gains rate and increase the highest income tax rate, according to ITEP's analysis. In contrast, the bottom 95% of taxpayers would see no change in their tax burden in 2022 if the proposals were implemented.
There is the kicker: "In contrast, the bottom 95% of taxpayers would not see any change in their tax burden in 2022 …"
Significant too? Yahoo! notes that people in red states are generally less burdened by these laser-focused tax increases than taxpayers in some of the richer blue states – because Joe Biden is not a vengeful guy who wants to punish and humiliate anyone who didn't vote for him.
A higher percentage of residents in New Jersey, Massachusetts, New York, California, and Connecticut would bear the tax burden, with just over 1% of each state's population potentially seeing a tax increase if Biden's plans go into effect.
Residents in states like Arkansas, Louisiana, Mississippi, New Mexico, Oklahoma, South Carolina, and West Virginia are the least likely to see a tax hike, according to Biden's proposals. Only 0.3% or fewer people in these states are facing a possible tax hike in 2022, according to the analysis.
Additionally, Biden suggests stricter IRS oversight of wealthy taxpayers – and only wealthy taxpayers.
So that's the tax part of Biden's planned paradigm shift. What do the poor and middle class get from the business? Holy shit what aren't they getting? Just take a look at the American Families Plan summarized by ITEP:
“In addition to groundbreaking improvements in education and childcare, the American Family Plan provides almost all children with the Child Tax Credit to correct past inequality and Dramatically reduce child poverty. It also increases the amount of that credit through 2025, increasing the Child and Dependent Tax Credit and Earned Income Tax Credit while sadly departing Children who lack social security numbers from the CTC. The expansion of the tax credit will alleviate poverty and dramatically improve the lives of children and parents, especially for those facing financial problems.
And then there are the long-term investments in Biden's infrastructure plan, which will create thousands of jobs and prepare us all for a future of green energy.
In other words, wins greatly for regular Americans. But you won't hear that from Republicans who have finally spoken to Dr. Seuss and Mr. Potato Head went on to whine about the deficit they recently blew up like a stranded Oregon whale.
You see, deficit spending is only a “socialist” move if poor people benefit from it. When the rich sit on their huge dragon treasures and single mothers are forced to choose between clothing, food or medicine, it is called "patriotism".
No longer: If Biden passes his ambitious spending packages, Republicans will have to come up with even more goofy distractions than Mr. Potato Head's hollow sexless skull. Otherwise, their dwindling base might actually notice that they were had.
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