New President-elect Joe Biden is making heads turn with his recent desire to return to the tax rates of the Bush-era.
According to news agencies, Mr. Biden was loud and clear about hiking up tax rates to a value that was similar to the past. And that means moving forward with the highest levels, just like the administration of George Bush.
Meanwhile, critics called him out for undercutting his promises, made during his election campaign. And that revolved around no increase in taxes for all of those Americans that were earning a value that was lesser than $400,000 per annum.
On the other hand, Joe Biden also outlined his strategic economic platform recently. He mentioned how he would embark upon making sure that long-term growth was definitely on the cards while talking with a columnist from the New York Times.
One statement that really caught people’s attention was: “Everybody pays their fair share, for God’s Sake.”
By the fair share, Biden meant how he wasn’t opposed to the idea of hiking up tax rates to 39.6%. And that was the exact same amount seen during the start of the George W. Bush administration.
“There is simply no reason why the 91 Fortune 500 companies are paying zero taxes,” he exclaimed.
The country’s greatest marginal tax rates never stood steadily at 39.6%. However, in 2001 and 2003, former president Bush made a series of jaw-dropping changes with his ‘Bush Tax Cuts.’ Here, he reduced rates for marginal taxes down to 35%.
This continued till the Obama administration took power in 2013. And that’s when they allowed the tax cut regime to expire, as the US economy picked up steam. Moreover, this was in wake of the financial crisis, thoroughly fueled by banking.
In 2017, President Trump’s administration reformed the taxes again. And that involved lowering down marginal tax rates from a staggering 39.6% to 37%.
This new decision goes against Biden’s recent campaign trail. Here, the president-elect vowed that all those citizens who earned less than $400,000 wouldn’t need to pay a single cent more, in terms of taxes. He also promised to increase the corporate tax rate level, leading to a massive trillion-dollar rise in profits.
Unfortunately, the picture is very muddled at the moment, with plenty watching the new administration’s moves closely.