WASHINGTON, D.C. – Liberals are now questioning President Biden’s pledge that “Nobody making under $400,000 bucks would have their taxes raised, period,” with a new analysis from the left-leaning Tax Policy Center.
The analysis finds that President Biden’s overall tax plan will raise taxes on 75 percent of middle-class families next year, rising to 95 percent of middle-class families by 2031.
Meanwhile, the Biden Administration is cooling the jobs recovery. As Ways and Means Republican Leader Kevin Brady (R-TX) said, “Through the first five months of this year, the Biden Administration added 500,000 fewer jobs than the last five months of 2020 – some of which were during the height of Covid cases and deaths. A half-million jobs short. And due to inflation, real wages have actually declined since President Biden took office.”
At a Ways and Means hearing, Treasury Secretary Yellen was unable to refute this claim, along with a few others. Here are some of the top takeaways:
Takeaway #1: Liberals Are Saying President Biden is Breaking His Pledge Not to Raise Taxes on the Middle Class.
President Biden’s budget assumes a rollback of the middle-class tax cuts. Yet, Secretary Yellen said, “The President hasn’t taken a position on what tax policies should be at that time.”
This fails to rebut new analysis from the left-leaning Tax Policy Center that 75 percent of middle-income households would face a tax increase, 95 percent by 2031.
Takeaway #2: The Biden Administration Won’t Rule Out a SALT Windfall Tax Shelter for the Wealthy.
Secretary Yellen would not answer whether President Biden would restore a special windfall tax provision that gives the wealthy a special tax shelter from his proposed tax increases.
As the Wall Street Journal wrote:
“Rep. Kevin Brady, the committee’s top Republican, pressed Ms. Yellen on whether Mr. Biden would support the cap’s elimination if lawmakers included it in a compromise infrastructure package. ‘I’m not going to negotiate here on behalf of the president,’ she said.”
While taxes go up for most middle-income households under his plan—one he claims focuses on the wealthy and corporations—President Biden and Secretary Yellen won’t rule out a special carveout for the wealthy.
Takeaway #3: Secretary Yellen Makes No Mention of Global Minimum Tax’s Surrender of Jobs Overseas.
The Biden Administration’s proposed global minimum tax makes it better to be a foreign worker or company than an American one. The biggest incentive to move U.S. jobs overseas is President Biden’s own reckless proposal to hike business tax rates by one-third, worse than China’s and dead last among our foreign competitors.
This proposal is a promise to foreign nations that American companies operating overseas would have to pay higher taxes than their foreign competitors. This would give foreign competitors an advantage to target American companies and jobs, and erode our tax base.
Rep. Brady put it succinctly: The White House is “leading a global race to the bottom” for America’s competitiveness and our workers.
Remarkably, Secretary Yellen stood by the Biden Administration’s push for a global minimum tax, saying: “I am really pleased to see unanimity in the G7, that we should establish a global minimum tax, that it should be at least 15 percent.”
Of course foreign countries would cheer the surrender of our economic competitiveness.
Takeaway #4: Secretary Yellen Agrees that Unemployment Insurance Fraud is a Significant Issue, But the Biden Administration Doesn’t Know How Much We’ve Lost.
Unemployment insurance benefits were intended to help workers get through the pandemic, but experts say the program has become a lucrative windfall for international fraudsters, with up to $400 billion in tax dollars lost.
When asked by Rep. Jackie Walorski (R-IN), Secretary Yellen agreed:
“I agree with you, it’s a significant issue.” But she admitted to not knowing how much we have lost in fraud.
Rep. Brady has described this theft as the biggest heist of tax dollars in our lifetimes. The Biden Administration still has no clue how much we’ve lost.
Takeaway #5: Secretary Yellen Agreed that Expanded UI is Harming Businesses, Believes These Benefits Should Not Be Renewed Past September.
Through the first five months of this year, the Biden Administration added 500,000 fewer jobs than the last five months of 2020 – some of which were during the height of Covid cases and deaths. A half-million jobs short. And due to inflation, real wages have actually declined since President Biden took office.
President Biden denied the role of continued enhanced unemployment benefits, even though Federal Reserve Chairman Jerome Powell made clear that these benefits have discouraged workers from returning to work and harmed our recovery.
When pressed by Reps. Nunes (R-CA), LaHood (R-IL), and Hern (R-OK), Yellen admitted that enhanced UI was one of the factors for high unemployment in certain states.
In one exchange she said: “…There are many, many reasons why firms are seeing labor shortage — shortages. It’s not only a matter of the additional unemployment benefits…”
In another exchange she said: “…The unemployment benefits are not intended to stop people for looking for jobs … Look, they’re disappearing — they’re ending in September and states have the latitude to end them sooner, and many are.”
There’s no reason this Administration can’t end them sooner.
BOTTOM LINE: The last thing Americans need is President Biden’s tax hike.