April 18, 2023
Every Day is Tax Day in Biden’s AmericaWASHINGTON – House Budget Committee Chairman Jodey Arrington (R-TX) released the following statement on Tax Day about the record taxes proposed by President Biden’s budget proposal.
“In Biden’s America, every day is Tax Day. From weaponizing the IRS to choke American energy production, to hiring 87,000 IRS agents to shake down hardworking Americans, to proposing a budget with the highest sustained levels of taxes, Biden has an unquenchable thirst for taxing the American people. Biden’s FY24 budget is a window into The Left’s plan to tax American job creators, workers, and families into oblivion to finance their bloated bureaucracy and woke agenda."
By the Numbers
- Proposes a total of $65.2 trillion in revenues over the FY 2024 – 2033 budget window.
- Increases taxes by:
- $4.7 trillion compared to the OMB baseline over ten years.
- $7.4 trillion over ten years compared to what taxes would be if they remained at the 50-year historical average as a percent of the economy.
- Imposes the highest sustained level of taxes in history. Taxes would average 19.63% of GDP over the budget window. The budget calls for increasing taxes to 20.11% of GDP by 2033, a level only reached once during the height of World War II.
- The 50-year historical average for taxes is 17.4% of GDP. The CBO baseline projects taxes to average 17.96% of GDP over the 2024 – 2033 period.
- Raises taxes by more than $35,000 per American household.
- Even the left-wing Tax Policy Center predicts that more than 111 million taxpayers under $400,000 will see tax increases in 2024 under Biden’s budget, with the majority of taxpayers making between $31,000 and $400,000 facing tax increases next year.
- Assumes the 2017 tax cuts are ended, which would raise rates on all families and small businesses, cut the standard deduction in half, and end the small business deduction.
- The Tax Cuts and Jobs Act lowered taxes by an average of $2,000 per family of four.
- Reduces wages and increases costs for workers and families. For example, workers bear 70% or more of the burden of corporate taxes, and higher business costs will be passed on to consumers.
- Continues the Biden Inflation Tax, which has already lowered real wages for the average worker more than $2,000 since Jan. 2021 as a result of reckless government spending.
- Targets main street businesses with $1.8 trillion in new taxes, including increasing the top rate on small businesses, increasing corporate taxes, and expanding surtaxes on small business owners.
- Applies the Obamacare Net Investment Income Tax and self-employment taxes to small business income for those earning above $400,000, which would hit more than one million small business owners, according to data from the IRS.
- Raises taxes on small businesses by assuming the end of the Tax Cuts and Jobs Act small business deduction. In 2020, 19 million small businesses claimed this deduction, reducing tax liabilities by $159 billion.
- Hammers struggling small businesses. These proposals come when small business owners surveyed by the NFIB expect worsening business conditions, and 47% report job openings they can’t fill. More than 80 main street business groups wrote in opposition to these tax hikes.
- Doubles the capital gains tax, which would become the highest in the developed world.
- Allows business expensing and expensing research and development expire.
- Hits seniors and savers with $261 billion in new taxes on retirement plans and stock buybacks, which would further reduce access to capital and investment.
- Invites fewer innovations, reduced economic growth, and lower living standards for families.
- Hikes the corporate tax rate by one-third to 28%. Including state taxes, the combined corporate rate on American businesses would be 32.2%.
- Once-again puts the United States in the dubious position of having the highest taxes on businesses among its major international competitors – even higher than the 25% rate imposed by the Chinese Communist Party.
- Reduces take home pay and costs jobs.
- Doubles down on the international global high tax cartel, including large tax increases on American companies that do business overseas, resulting in fewer jobs and less prosperity for millions of American families.
- Proposes $37 billion in higher taxes on domestic energy producers that would drive up gas and energy prices even more and set back unleashing American energy supplies and growth.