Democrats’ reconciliation bill breaks Biden’s middle class tax pledge

During the 2020 campaign, Joe Biden and Kamala HarrisKamala HarrisMexico urges more US investment in Central America to stem migration flows McCarthy raises nearly M so far this year Smarkets betting site makes Trump favorite in 2024 MORE promised over 50 times that they would not raise any tax on any American making less than $400,000 per year. But now, Democrats are pushing a multi-trillion-dollar socialist reconciliation bill that violates the pledge.

They claim it will cost nothing because it is “paid for” by tax increases that won’t harm the middle class or those making less than $400,000 per year. This is false. The legislation costs trillions of dollars over the next decade and will harm working families and many Americans making less than $400,000 per year.

Working families are already seeing tightening budgets and higher prices under President BidenJoe BidenSinema fundraising in Europe as reconciliation talks ‘ongoing’: report Mexico urges more US investment in Central America to stem migration flows Trump calls into Take Back Virginia Rally to hype Youngkin MORE. Consumer prices have increased by 5.4 percent over the last 12 months, a rate significantly higher than when President Biden took office, when consumer prices had increased by just 1.4 percent in the past 12 months.

Gasoline has increased by 42.1 percent in the past year, meat has increased 12.6 percent, and televisions have increased by 12.7 percent. Children’s footwear has increased 11.9 percent, bacon has increased by 19.3 percent, and fresh seafood has increased by 10.6 percent.

While Americans making less than $400,000 are already feeling the effects of this inflation, Biden and Democrats have proposed multiple tax increases that will directly impact these families.

For instance, Democrats want to raise the corporate tax rate so that our rate is higher than China and Europe. Corporations will not bear the cost of these tax increases but will pass it along to working families in the form of higher prices, fewer jobs and lower wages. The Joint Committee on Taxation estimates that 25 percent of the corporate tax falls on workers while the Tax Foundation estimates that 70 percent of this tax is borne by labor.

The left-of-center Tax Policy Center concluded that Biden’s budget would result in higher taxes for 74.1 percent of middle income-quintile households. By 2031, the TPC found that 95 percent of this income group will see a tax increase due to the expiration of middle-class tax cuts and corporate tax increases.  

This means that workers will be hundreds of billions worse off from the tax hikes being pushed by Democrats. Similarly, a 2020 study by the National Bureau of Economic Research found that 31 percent of the corporate tax falls on consumers.  

The corporate tax increase will also erode the life savings of Americans that have their life savings invested in 401(k)s, IRAs and the stock market. Eighty to 100 million Americans have a 401(k), 46.4 million households have an individual retirement account and half of Generation-Zers and Millennials are invested in stocks.

Democrats have also proposed a $97 billion tax increase on tobacco and reduced risk…