Joe Biden’s $4 trillion tax plan would reduce employment by up to 3 million jobs, depress GDP (per capita) by 4 to 5%, and slash incomes by as much as nearly $8,000 per household, according to a study released Tuesday.
University of Chicago economist and Committee to Unleash Prosperity senior fellow Casey Mulligan reveals in his report the strains that Joe Biden’s proposed higher tax rates would have on Americans’ ability to save, invest and work.
Biden’s $4 trillion plan aims to raise the tax on capital gains, corporate income, individual income tax, estates, and small business income taxes. In addition, the Biden plan also expands health insurance tax credits, which has negative labor market consequences.
In sum: an economic disaster.
As I’ve said before, we are in jeopardy of falling back into the high inflation, low wage, low growth scenario of the 1970s, complete with bell-bottoms and sideburns! And, according to The Committee to Unleash Prosperity’s Stephen Moore, indeed, “These are some of the steepest increases in tax rates at least since the 1970s. You have to go back to the Jimmy Carter presidency to find tax rates this high.”
In addition, Mulligan writes that “the Biden tax agenda will reduce production, incomes, and employment by increasing taxation of both labor and business capital. Employment will be about 3 million workers less in the long run (five to ten years).”
These findings are in direct contrast to the Biden campaign’s claims that his tax rate hikes would create millions of new jobs. Mr. Biden voiced these predictions during the first presidential debate with President Trump in Cleveland.
The study concludes that Biden’s intention to only tax the wealthy and those making more than $400,000 is wrong. According to Professor Mulligan, “The incidence of the tax may fall on the wealthy making more than $400,000, but the tax will very negatively affect the incomes of all workers across the income scale because of the reduced investment by businesses,” Professor Mulligan said.
You can read the entire study here. https://committeetounleashprosperity.com/