According to the organization, Americans for Tax Reform, there are 4.7 TRILLION proposed new taxes in President Biden’s FY 2024 Budget Proposal. This comes after the $700 BILLION in tax increases in the so called Inflation Reduction Act approved by both parties. When you read the Highlights on the ATR post, you will discover these new tax hikes include:
– Highest Personal Income Tax Rate Since 1986 (combined Federal Tax rate of 45%)
– Highest Capital Gains Tax Since 1978. A rate over twice as high as China’s capital gains tax rate.(nearly doubles rate from 20% to 39%)
– Corporate Tax Rate Higher than Communist China. (A 31% increase, from 21% to 28%)
– Unconstitutional Wealth Tax on Unrealized Gains
– Quadrupled Tax on Stock Buybacks. This tax will hit every American with a 401K or IRA or union pension.
– $31 Billion Tax on American Energy
– 32% Increase to Medicare Taxes
– Carried Interest Tax on Capital Gains
– $23 Billion Retirement Tax
– $24 Billion Cryptocurrency Tax
– Real Estate Tax Hike (wants to end 1031 Like-Kind Exchanges)
– Doubles the Global Minimum Tax (Global Intangible Low-Tax Income (GILTI) from on U.S. multinational corporations from 10.5 to 21 percent, which after the disallowance of foreign tax credits would provide a top rate of 26.25 percent)
ATR and writer Mike Palicz did a great job summing up what they have discovered so far. We highly recommend you read this article at Americans For Tax Reform.
1 comment on “President Biden Budget Proposes Another 4.7 Trillion In Taxes”
What a lot of people don’t realize or choose to ignore is that the tax burden in the USA is just a hair short of being the lowest in the western civilized world while we spend an enormous amount on our military compared to other nations. If we want to have the world’s biggest air force, the USAF and the second biggest air force, the US Navy, we need to collect what it takes. Moving on, a 1031 exchange when skillfully done shields the increase in value or property from taxation–ever–when heirs get the property with a stepped up basis. Estate tax, which is essentially income tax on the previously untaxed gains doesn’t kick in at a low enough starting point to tax those gains so unless you are mega rich when you die the whole gain escapes taxation. Whether or not this is a good thing is up to your own opinion. It does not provide much benefit to the poor. The additional funding for IRS added to the what has already been proposed is really needed. My take is that the original proposal will, in the long run, not be enough to cover the estimated 50,000+ retirements and resignations off current IRS employees in the next few years and the–my estimate based on observations as a 35 year IRS employee–50% of new hires who will quit in the first year or two for better jobs. The additional funding would bring IRS up to a bit better than treading water.
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