President Biden is pushing for trillions in tax hikes during an election year, despite experts warning it would reduce economic output and have other dire effects. It may be popular with the anti-corporate elements of potential voters, but tax experts say it’s a mistake.
“The tax increases would substantially increase marginal tax rates on investment, saving, and work, reducing economic output by 2.2 percent in the long run, wages by 1.6 percent, and employment by 788,000 full-time equivalent jobs,” according to a recent Tax Foundation analysis. “On a gross basis, we estimate Biden’s FY 2025 budget would increase taxes by about $4.4 trillion over that period [of 2024 to 2034]. After taking various credits into account, the increase would be about $3.4 trillion,” read the analysis.
