A man walks into a cafe and says, “Dinners on me, who’s paying?”
We thought this joke was fitting, considering the news that hit the US this past week.
The Senate approved the $3.5 trillion budget blueprint, which the current administration described as “the largest federal investment in public transit in history.”
The Committee for a Responsible Federal Budget estimates that this bill will actually cost Americans upwards of $5 trillion, in addition to the $1.9 trillion COVID “relief” bill that the President signed into law in March.
At this point, whether $3.5 trillion or $5 trillion, it seems like numbers are being thrown out just to see how much they can get away with, because after all, who will be paying for it?
The brilliant plan that comes at one of the worst times in American history will, unfortunately, impose higher taxes on corporations and high-income households in order for it to be funded.
This means significant corporate, capital gains, and income tax rates on the American people.
If you’re earning $400,000 or more, expect to be hit the hardest.
Income tax rates will go as high as 39.6%, up from 37%.
For those earning more than $1 million, Biden would also almost double the top rate on capital gains and dividends to 39.6%, from 20%.
The plan also includes raising the corporate tax rate from 21% to 28%.
Before you know it, we’re not so far from a near 50% increase in taxes.
Not even a full year of having the new “team” in office and we may be soon experiencing tax rate increases which some opponents of the bill fear will fuel inflation and lead to higher taxes and energy costs for working Americans.
Any tax changes will have to move through Congress and be approved by Congress, which isn’t assured. Nevertheless, Democrats are using a Senate procedure that allows them to bypass Republicans, but it will require unity in their 50-member caucus to prevail.
Some are calling it “radical.” Noting that it would create a permanent welfare state and usher in the largest peacetime tax hike in US history.
Due to the poor allocation or, to put bluntly, mismanagement of funds, we the people are now being taxed more than ever.
Americans who have put their best foot forward making continuous sacrifices to grow their savings and wealth have been graciously chosen to be the financial life support for an irrational, out-of-control spending government.
Does this sound fair to you?
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