Debate Night for the VP’s – Taxes and the Economy

by

If you did not watch debate night for the VP’s you missed this bit on taxes and the economy.

Taxes and the Economy

About the Trump tax cuts Harris said:

… The Biden administration would repeal the 2017 tax cuts “on Day One,” and that they were passed to benefit the rich… Joe Biden believes you measure the health and strength of America’s economy based on the health and strength of the American worker and the American family… On the other hand, you have Donald Trump, who measures the strength of the economy based on how rich people are doing.”

Pence countered saying:

“Joe Biden said twice in the debate last week that he’s going to repeal the Trump tax cuts … That was tax cuts that gave the average working family $2,000 with a tax break.”

In 2017, Congress passed the Tax Cuts and Jobs Act, which reduced federal income taxes and made various other changes to the U.S. tax code. Following the tax cut, the American economy experienced record low unemployment, wage growth, and an overall increase in business investment, according to Adam Michel, a specialist on tax policy and the federal budget as a policy analyst in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.

The Biden plan

Harris said that Biden’s tax plan would end tax breaks for the wealthy but wouldn’t raise taxes on American making under $400,000. Harris added:

“He has been very clear about that … Joe Biden is the one who, during the Great Recession, was responsible for the Recovery Act that brought America back, and now the Trump and Pence administration wants to take credit for Joe Biden’s success for the economy that they had at the beginning of their term.”

According to The Washington Post, “most Americans received a tax” cut in 2017, not just the rich. Further, Biden’s tax proposal would raise taxes about $3 trillion over the next decade, according to the nonpartisan Tax Foundation.

“… The Biden tax plan would reduce [gross domestic product] by 1.47 percent over the long term,” according to the Tax Foundation’s General Equilibrium Model. “On a conventional basis, the Biden tax plan by 2030 would lead to about 6.5 percent less after-tax income for the top 1 percent of taxpayers and about a 1.7 percent decline in after-tax income for all taxpayers on average.”

According to the left-leaning Tax Policy Center, Biden’s proposal “would increase taxes on average on all income groups, but the highest-income households would see substantially larger increases, both in dollar amounts and as a share of their incomes.”

Author

Share to...