Biden set to harm American workers, consumers with Senate proposal to hike corporate taxes

Despite semantic arguments to the contrary by the Biden administration and its media sycophants, the U.S. economy has most likely entered into a recession at a time when American families are already dealing with soaring inflation and high prices for energy and goods.

Now, at a time when those American families can least afford it, President Joe Biden is on the verge of increasing their financial pain with higher taxes and even more government spending, according to a new report.

Worse, in spite of Biden’s oft-repeated vow not to raise taxes on families earning less than $400,000 annually, countless American workers under that threshold will almost certainly find that their tax burden has increased.

Biden cheers on Senate proposal to hike taxes on wealthy, corporations

At issue here is a so-called budget reconciliation deal worked out between Senate Democratic Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) with the misleading title of Inflation Reduction Act of 2022 that does virtually nothing to address inflation and instead hikes taxes on corporations and the wealthy while increasing spending on climate change and healthcare-related things.

According to the nonpartisan non-profit Committee for a Responsible Federal Budget, this Senate proposal, if it were to become law, would raise an estimated $470 billion in additional tax revenue in 10 years, with approximately $315 billion coming from a 15 percent corporate minimum tax and another $125 billion from greater IRS enforcement, with the remainder coming from the closure of particular tax code “loopholes” and the imposition of additional fees.

President Biden, in a statement Wednesday in support of the Senate proposal, cheered on all of the new federal spendings on healthcare and “green” energy that would be authorized, and said, “And we will pay for all of this by requiring big corporations to pay their fair share of taxes, with no tax increases at all for families making under $400,000 a year.”

Workers and consumers bear brunt of corporate taxes

Except, according to the independent non-profit Tax Foundation, roughly half of the corporate tax burden is shouldered by workers — the vast majority of whom earn less than $400,000 per year — through lower wages instead of corporate shareholders through reduced profits.

Further, a portion of the tax burden is also passed along to consumers — again, most of whom earn less than $400,000 per year — in the form of higher prices for whatever goods or services a particular corporation provides.

Indeed, the Tax Foundation noted that studies have shown that, on average, shareholders shoulder approximately 31 percent of the corporate tax burden via reduced profits, consumers account for another 31 percent of the burden through higher prices, and workers bear the remainder of the tax obligations through reduced wages.

And, as if that weren’t bad enough, the Tax Foundation reported separately that this costly proposal comes when the American economy is almost certainly in a recession and facing historically high inflation, and when American workers and consumers can least afford stagnant or reduced wages and even higher prices, respectively.

Biden’s goal of increased taxes in reach

President Biden has been adamant in his desire to raise taxes across the board on the American people, regardless of his disingenuous — if not blatantly dishonest — insistence that non-wealthy Americans will not bear the burden of increased tax obligations to fuel excessive federal spending.

Unless certain senators or congress members suddenly come to their senses and reject this proposal, Biden’s goal of hiking taxes on virtually all Americans will soon be realized and the U.S. economy will likely suffer even more than it already has under his misguided fiscal policies.

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