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As predicted, President Joe Biden’s repeat assertion that his tax-and-spend proposals wouldn’t raise taxes on families earning less than $400,000 a year has been found to be a lie.
This finding comes courtesy of the Urban-Brookings Tax Policy Center, an ostensibly nonpartisan think tank run jointly by the left-wing Urban Institute and Brookings Institution.
The center published a comprehensive new analysis Wednesday showing that “roughly 20 percent to 30 percent of middle-income households would pay more in taxes in 2022” if the president’s exorbitant, widely panned Build Back Better proposal made it into law.
“Among those with a tax increase, low- and middle-income households would pay an additional $100 or less on average. Those making $200,000-$500,000 would pay an average of about $230 more,” the center reported.
While the center stressed that these are “very small” amounts, this still means more money taken out of the American people’s wallets. Money specifically that could have instead been used to pay a bill, buy gas or purchase groceries.
Now contrast this finding with what the president tweeted two months ago:
I give you my word as a Biden: If you make under $400,000 a year, I’ll never raise your taxes one cent.
But, I’m going to make those at the top start to pay their share in taxes.
It’s only fair.
— President Biden (@POTUS) September 27, 2021
Contrast it also with what he said last month.
“I want to emphasize what I said from the beginning: Under my plans if you earn less than $400,000 you won’t pay a single penny more in federal taxes, period,” were his exact words, as seen in the video clip up top.
But it gets worse.
The expiring of the Child Tax Credit and the implementation of a corporate minimum tax on book income “would result in many households paying higher taxes in 2023 than in 2022,” according to the center.
“They would shrink the average 2023 tax cuts for low-income households, raise taxes slightly for moderate-income households, and increase taxes significantly for the highest-income households,” the think tank noted.
But it gets even worse.
It appears that thanks to the gutting of the SALT tax deduction cap established by former President Donald Trump, some of the biggest actual tax cuts would be offered to those blue state Americans earning between $500,000 to $1,000,000 per year.
*** Nonpartisan Tax Policy Center analyzes House Dems’ Build Back Better plan and finds:
— Average ~$6,000 *tax cut* for those earning between $500,000 and $1 million per year (almost certainly due to SALT) pic.twitter.com/2aSQaOvO5h
— Jeff Stein (@JStein_WaPo) November 11, 2021
Thanks to the SALT 🧂 cap increase, over two-thirds of millionaires will get a TAX CUT under Build Back Better. pic.twitter.com/qEN7T4o8HW
— Marc Goldwein – GET VAXXED! (@MarcGoldwein) November 11, 2021
Conversely, despite the president’s claim that this gutting of the cap would help the middle class, the fact remains that they’d barely be affected by it.
“Despite what its promoters say, raising the cap to $80,000 would provide almost no benefit for middle-income households. It would reduce their 2021 taxes by an average of only $20,” according to the think tank.
This is such a glaring contradiction of Biden’s promises that even Sen. Bernie Sanders, who’s been fairly loyal to Biden since he took office, has called it out:
Yes. In terms of SALT we must protect the middle class from high local and state taxes. But we cannot provide 39% of the benefits to the top 1% – as is in the House bill. At a time of massive income inequality we must increase taxes on the 1%, not give them huge tax breaks.
— Bernie Sanders (@SenSanders) November 9, 2021
So has even The Washington Post, a hardcore Biden loyalist.
“The bill devotes nearly $300 billion to increasing the cap on the state and local tax deduction — known as the SALT deduction — from $10,000 to $80,000 through the end of 2025. …. The SALT cap was put in place by the 2017 tax law to help defray the costs of tax rate cuts,” a “perspective” piece at the Post reads.
“While the vast majority of Americans saw their total taxes go down from the 2017 tax cuts despite this measure, the SALT cap prevented what would have been even larger tax cuts for high-income households. Now Democrats are proposing a massive increase in that cap, one that would deliver nearly $130,000 over five years to the handful of wealthy taxpayers with enough income to owe $80,000 in state and local taxes annually,” it continues.
🧂The $72,500 SALT Cap is Costly and Regressive🧂
Though this increase would be less costly than full repeal, it would still cost more than almost any other part of BBB with just the child care subsidies and the combined costs of all clean energy tax credits costing more. pic.twitter.com/wJEvtE3yji
— CRFB.org (@BudgetHawks) November 4, 2021
As noted by the non-partisan Committee for a Responsible Federal Budget, this provision isn’t “progressive” — it’s outright regressive.
But in being regressive, it seems to fit in perfectly with the modern Democrat Party, which even the far-left blog Vox has noted is now “the preferred party of the very wealthy.”
Returning to the Tax Policy Center’s analysis, keep in mind that it doesn’t even factor in inflation, which, it appears, is something neither the center nor the president seem particularly concerned about.
Indeed, speaking on Fox Business Network’s “Fox Business Tonight” this Thursday, host David Asman theorized that Biden and his allies in Congress care more about cementing a legacy than about the American people’s tribulations.
“I really believe that some in the administration don’t care that [Build Back Better] is going to cause (inflation). They want a legacy … and whether there’s high inflation or not, they think that a bigger government is going to ensure Democrat wins for as long as the eye can see. I think they care more about getting this new Build Back Better plan in than they do about the inflation that it’ll cause,” he said.
His guest, former CKE Restaurants chief executive Andrew Puzder, concurred.
“You’re absolutely right. And they haven’t even been shy about it,” he said.
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