PRESIDENT BIDENS BET ON TAXES
April 28, 2021 - Douglas Myser
President bidens bet on taxes. President Biden and the Democrats are making a big bet that the politics of taxes changed. In their view, the American public---frustrated by the economic impact of COVID-19 and years of stagnation for the middle class--is willing to countenance higher taxes, at least on corporations and the wealthy. "What most people care about is, are the jobs being created, am I doing better ? The notion that there is a link between higher taxes and you not doing better is simply not the lived experience of the majority of people in the United States," said Simon Rosenberg of the centrist New Democrat Network, contending that there is imply no data to support the idea that higher taxes per se slow economic growth. President bidens bet on taxes.
The president and his party are also betting that any proposed shift in taxation will not enfeeble the post pandemic recovery. "Raising taxes will not slow the economy at all," Biden said in response to a question from Kelly O'Donnell of NBC News at a White House news conference. "Asking corporate America to pay their fair share will not slow the economy at all." If he's wrong the results could be politically disastrous. Biden has declared that an increased corporate tax rate would be the primary means of paying for his massive infrastructure proposal. His plan would lift the corporate tax rate from 21 percent to 28 percent, even though recently the idea of 25 percent was discussed. It has been 35 before the tax cuts enacted by former President Trump in 2017.
Separately, some Democrats in the Senate are toying with changing how capital gains tax is levied upon a person's death, in another bid to boost revenue. The big picture for the president and his party is stark. Expansive government action is required to repair and reinvigorate an ailing America. Does the public see it that way ? Polling on Biden's infrastructure plan is sparse so far. The $1.9 trillion stimulus plan was quite popular though. IF the infrastructure plan boosts the economy, it should become quite popular also.