President Biden Is Lying About Need for Tax Increases
President Joe Biden has been pushing for trillions and trillions of dollars in new wasteful spending, claiming he’ll pay for it by raising taxes only on those making $400,000 or more each year.
He is lying.
Biden and his liberal allies in Congress are currently trying to get Congress to pass $3.5 trillion in new spending on a pork-barrel wish list dreamed up by radical socialist members of his party.
They claim they’ll pay for it by rolling back President Donald Trump’s tax cuts – which, until the China Virus pandemic, had produced the best economy America has seen in a generation – while also hiking capital gains taxes to levels even higher than European democratic socialist countries.
These tax increases alone will stifle investment in American jobs, further harming our ability to reinvigorate our working class and compete with China.
What’s worse, the runaway inflation spurred by this reckless spending combined with sluggish economic growth will return America to the stagflation of the 1970s — or worse.
This already is a nightmare scenario for West Virginia families, but it will be made worse by the potential tax increases Biden and Congressional Democrats might try to slip into their spending bills.
One such increase is being called a “financial transaction tax.” This is being pushed by Sen. Bernie Sanders, I-Vt. –which in and of itself should already be a red flag to freedom-loving Americans.
The Democratic Socialist Senator, and his allies, wants to implement a tax of at least 0.1-percent on any stock, bond, or mutual fund transactions. While it’s being pitched as a tax on the super-rich, it will actually harm working-class Americans.
That’s because Bernie’s tax doesn’t exclude common tax-exempt savings programs used by everyday people, including 401(k) accounts and 529 college savings accounts. That means, any time you deposit money in your retirement account or child’s SMART529, it will be taxed. Any time you rebalance your portfolio, it’ll be taxed.
Any time you rotate your savings from stocks to bonds, it’ll be taxed.
The reason we exempt 401(k) and 529 accounts is to make it easier for regular, hardworking Americans to save for retirement for their children’s future. This tax will make it harder for them to build savings.
The tax also does not exempt pension funds, so it will hurt the investment funds upon which thousands of hard-working union members and public employees and their families rely for retirement income.
That’s just one tax on the middle class they’re trying to sneak into this package.
Another would take even more money out of consumers’ pockets.
Lawmakers are also considering what they call the “Tobacco Tax Equity Act,” which would increase taxes on products that help reduce the harm for those who are addicted to tobacco products along with tobacco products with less nicotine.
Instead of incentivizing cigarette smokers to use other less-harmful products through lower taxes and fees, this bill would treat these other products the same as the more-harmful cigarettes.
Some commonly used products, like vapor products – which studies have shown are 95-percent less harmful than cigarettes — would see significant price increases. This would lead to fewer customers choosing them as an alternative, locking them into using tobacco products.
The proposed tax hikes would also raise taxes on popular products like dip as much as 16 times the current tax rate. If the federal government wants to help these people, then it should keep the prices lower.
Not only would this make it harder for those looking to quit smoking to do so, but it would also devastate West Virginia’s small businesses.
About 90 percent of these products are sold in convenience stores – including many of the mom-and-pop independent stores that thrive here in West Virginia. The 2,200 retailers that sell these products make up the backbone of our small business economy.
This tax hike would not only drive down sales of these products, but also reduce stores’ overall sales, since many consumers also buy other things when they come in to buy these products.
Increasing the tax could drive down sales at these critical small businesses, leading to layoffs and more vacant storefronts across our state. The pandemic has already hurt these businesses enough – we don’t need to exacerbate the problem.
That’s just two examples of taxes that will hurt working class West Virginians and small businesses, who else knows what other schemes Washington liberals will cook up to pay for their $3.5 billion boondoggle.
If President Biden truly wants to help the middle class in this country, he needs to stop pushing for tax hikes and reckless spending plans that hurt the very people he claims to support.
Riley Moore, a Republican, is the 25th State Treasurer of West Virginia.