President Biden is proposing more tax hikes to pay for social programs. However, economists are raising concerns President Biden’s proposed tax hikes on the wealthy will end up hurting Middle Class Americans.
As the U.S. economy is gearing back up amid nationwide reopenings, many are worried the Biden administration's long list of proposed tax hikes could drag it down. He’s proposed higher taxes on small businesses, raising the corporate tax rate, adding a possible wealth tax, and increasing death taxes. Economist and national columnist Peter Morici says Biden’s capital gains taxes would kill American inventors and send American startups to other countries for funding.
“How can we expect people to gamble on startups which have low probability of succeeding in any one case, to take that bet, if he’s going to tax them at such a high rate,” Morici asked.
The president is getting pushback from Republicans, and even 13 House Democrats, who are asking to exempt family farms from a tax increase. Morici contends the president is getting some bad advice in the Oval Office.
“The economists that are advising Mr. Biden are of marginal competence. They look good. They’re pretty on camera,” Morici said. “But they’re the sort that will tell you if you raise the minimum wage nothing happens, but if you raise the carbon tax, that will encourage people to consume less.”