“I will raise taxes for anybody making over $400,000,” Biden says over and over. “Let me tell you why I’m going to do it. It’s about time they start paying a fair share of the economic responsibility we have. The very wealthy should pay a fair share, corporations should pay a fair share.”

Income taxes — that thought of soaking the rich — is appealing to many. But how do you define “fair share”?

In 2017, the top 1 percent paid more income taxes than the bottom 90 percent combined. According to the Tax Policy Center, 76.4 million people (44.4 percent) did not pay any federal income tax in 2018. And so the question remains, what do you mean by “fair share?”

Stated another way, the middle 20 percent of earners, with incomes of $50,001 to $87,300, will pay an average federal tax rate of 12.4 percent; according to the Tax Policy Center analysis, that’s less than half the effective tax rate paid by the top 1 percent.

Biden and Harris have said publicly, “We will repeal the Trump tax cut on day one.” And they should add, “and you will all be paying more federal income taxes.”

As for corporate taxes, the Trump tax cuts reduced corporate taxes from 35 percent — highest in the developed world — to 21 percent. “The idea that we have a tax rate for corporate America at 21 percent is ridiculous. It should be 28 percent,” Biden said.

The cost of producing a product consists of raw materials, plant operations, wages, corporate taxes, etc. The point being, corporate tax is just another cost of producing a product. If the corporate tax goes up, the selling price to the consumer goes up. Corporations don’t pay taxes, people pay taxes.

The second consequence of higher corporate taxes is much more serious. If manufacturers cannot compete on price, they move manufacturing overseas for cheap labor. High corporate taxes have sent tens of thousands of manufacturers overseas while others simply went out of business.

On the capital gains tax, Biden says, “So every single solitary person, their capital gains are going to be treated like real income and they are going to pay 40 percent on their capital gains tax.” His plan doubles the current rate of 20 percent.

Capital gains is a double tax. You make money, pay taxes and invest money, which creates jobs and wealth. If you make an investment profit, the feds tax you again.

Wealthy folks obviously do not put their money under their mattress. They invest it. They risk it. When the investment is successful, they make more money and invest more. Capital is the fuel for capitalism.

What else is coming out of Joe’s basement? Let’s look at estate taxes. The most despicable tax of all, it is currently taxed at 40 percent of estate value above $11.6 million. Biden would lower the exemption to $3.5 million and raise the tax rate to 77 percent.

On the payroll tax, a 12.4 percent Social Security tax split between workers and employers currently comes off after $137,700 of income. Under Biden’s plan, there would be no shutoff limit.

And on the corporate minimum tax, Biden will put a 15 percent minimum tax on income of businesses with $100 million in profits. That would be another corporate tax passed on to the consumer.

A final thought about wealthy folks. Because they have means, they have options. When California over-taxed the rich, there was only 42 percent of the expected revenue gains from the tax hike because the rich had moved away. New York’s wealthy are departing in droves. Governor Cuomo points out that “a single percent of New York’s population pays half of the state’s taxes and they’re the most mobile people on the globe.” Correct.

Democrats need to research what happened in France when taxes on the wealthy became unrealistically high. From 2000 to 2014, 42,000 French millionaires departed.

The long-suffering Democrats’ economic policy of tax-and-spend simply does not — and cannot — grow an economy. Economic policy and taxation must be about growing the economy. When the economy grows, everyone wins.

Here is what is coming from Biden/Harris. The bottom 45 percent will pay no income taxes. The wealthy will be taxed until they and/or their money depart. The middle class will be taxed like never before to raise the tens of trillions of dollars for the programs in the Democrats’ campaign platform.

I am a soldier, not a tax expert. But there are some very smart folks in the following organizations who have come to the same conclusions: The Tax Foundation, American Enterprise Institute, Tax Policy Center, Committee for a Responsible Federal Budget, and Wharton Business School. All come to the same conclusion that Biden’s plans will increase taxes across the board.

Biden spent eight years in the White House with a tax-and-spend, no-growth economy. Why does he want to take us back there?

Lt. Gen. Marvin Covault, U.S. Army (ret.), is the author of “Vision to Execution,” a book for leaders.

(34) comments

Sally Larson

Trump has no plan but to keep borrowing money to make everything look good but don't look too closely at our debt because it's going to keep getting bigger because of his plan.

The guy doesn't know any better, he's never really had to work for his money. His parents bailed him out because of his bad decisions, he stole money from his dying brother's estate, he owes millions in debt, and doesn't know how to make good decisions for the country. He's as sleazy as they come and is going to leave us in a financial mess in November.

Mark Hayes

Sally, Joe Biden has stated he will be giving hourly workers a $15,000,oo a year increase in pay. Please explain ?

Sally Larson

Sorry, Mark, I don't have an answer for that.

Mark Hayes

Sally, I appreciate the honesty of your reply.

Mark Hayes

Sally, please answer the question, I'll get back to you later.

Richard Wright

I am sure you realize Sally that Pelosi and the House is responsible for originating all authorization and appropriations bills.

Mark Hayes

Joe Biden has introduced his plan for tuition debt forgiveness, a very generous offering, but how will those that have provided those loans, recoup their funds. I'll wait.

Conrad Meyer

Mark - I'll take a shot at answering all your excellent questions. It's called pandering - the socialist progressive democrats are expert at it. Free $tuff for all!

Mark Hayes

I confess, I made a mistake, I actually watched the news, wanted to see about the hurricane, but then a spot came on about Pelosi and the 25 Amendment, admittedly, I had to look it up. She stated it was not about Trump, like anyone would believe that, but it did peek my interest. Why, with Biden leading in the polls, Democrats confidence up, would Pelosi begin to address such a highly controversial issue, let the election resolve it, seems they believe it's in the bag anyway ? My take, Democrats know slow Joe will not make it four years, enter President, Kamala Harris.

Jim Tomashoff

My guess is that Biden will announce at sometime in his third year as President, after the mid-term elections, that he will not seek reelection. In addition to Harris that provides other potential candidates to enter the field.

ken leary

Joe Biden was involved in making bankruptcy unavailable for student debt. To answer your question: Most student debt is federal ( "Most student loans — about 92%, according to a June 2020 report by MeasureOne, an academic data firm — are owned by the U.S. Department of Education") and can be forgiven with the stroke of a pen (or push of a button). The advantage is that the "student" could then get on with their life, maybe buy a house, start a family, etc., Forgiving the loans would cost us nothing.

Mark Hayes

Ken, it's not that easy, but thanks for your input.

ken leary

Explain why it is not that easy Mark.

Mark Hayes

Another puzzling question for the proponents of the Joe Biden tax plan. Just who will be funding the free medical expenses incurred by the undocumented and illegals, another promise he has courted that population with, and supposedly they can't even vote. I'll wait.

ken leary

You know Mark, if you stub your toe in, say, France, Canada, Cuba, and numerous other (developed, civilized) countries, they will treat you for free even though you are not a citizen. They do this because it is the right thing to do.

Mark Hayes

Ken, difference between a stubbed toe and long term illness, $$$$. When was the last time you visited France, Canada, or Cuba ? Again, thank you for your input.

ken leary

Now who is "deflect(ing) and alter(ing) the central topic."

Mark Hayes

I need additional help in understanding another of Joe Biden's promises, debt forgiveness to renters and those with home mortgages, so just how will those who own rental property, and the lending institutions recoup what is owed them ? Again, I'll wait.

ken leary

I don't believe this is anything other than an empty campaign ploy Mark, but rather than making trillions of dollars available to Wall St and the banks to keep them afloat as was done in 2008 and now, help could be offered to citizens. Just a thought.

Mark Hayes

Ken, you seem unable to provide me with the answers I seek, although I appreciate your attempts to deflect and alter the central topic of discussion, my questions remain. If you cannot actually offer up any reasonable answers, then we have no reason to discuss it further .

ken leary

Actually it is you who does not address the answer. Once again, other developed countries addressed the needs of its' citizens, rather than the needs of the elites, by maintaining payrolls. "European Workers Draw Paychecks. American Workers Scrounge for Food" NYT headline. How am I deflecting Mark?

Mark Hayes

Ken, I asked the questions, you were unable to give a reasonable answers. Pretty much ends there.

Mark Hayes

Can someone explain just how Joe Biden intends to give hourly workers a $14,000.00 a year increase in pay ? I'll wait.

Peyton Cook

Also, despite what Biden/Harris are saying they will tax more than those making over $400,000.00 is not true. These taxes would not pay for all of the spending they are promising; free child care for children under 5 and many other transfer payments. Would it not be suitable to leave the money in the hands of families? Oh, if forget that government bureaucrats are smarter than common individuals.

Jim Tomashoff

",,,government bureaucrats are smarter than common individuals." Well they're smarter than you at a minimum.

Peyton Cook

BS

Mark Hayes

I have plans to purchase a home next door to the Obamas in Martha's Vineyard with my Social Security increase that Biden has promised.

Peyton Cook

The Federal Government does not create wealth. It consumes wealth. Wealth is created in the private sector. A strong, vibrant private sector creates jobs, which provide goods and services. Goods and services owners hire employees and pay them wages. Both employers and employees pay taxes on their wages and profits. Lower taxes mean more economic growth. Higher taxes slow growth. These are the fundamentals of economy. The Biden taxes would lead to another stagnant economy left by Obama. The Trump taxes created the strongest economy in decades. While COVID-19 has harmed the economy, it appears to be coming back stronger than expected in States which have opened more than others.

Sally Larson

The Tax Foundation is a non-partisan think tank. This is their summation of the candidate's plans.

“The disparity in the two candidates’ fiscal policy platforms is rather straightforward. Absent any details to the contrary, we are obliged to conclude that President Trump would rely on deficit financing to reduce tax rates while simultaneously increasing federal investment in the nation’s physical infrastructure. The Tax Policy Center has estimated that Biden’s tax proposals would increase federal revenue by about USD 4 trillion between 2021 and 2030.” Taxfoundation.org

You decide which candidate would be better for this country in the long run.

ken leary

"The Tax Foundation, American Enterprise Institute, Tax Policy Center, Committee for a Responsible Federal Budget, and Wharton Business School. All come to the same conclusion that Biden’s plans will increase taxes across the board." These are of course, all conservative think tanks. Of course they put forth this nonsense. Why you suggest that anything Biden spouts will adversely effect his Wall Street owners is more nonsense. It won't. He is owned by the DNC, DLC and they are owned by corporations. Why do you think a known criminal is now the Treasury Secretary and the person who refused to prosecute him is the VP candidate? It amazes me that people don't see through this BS. The most productive period in USA history was from WWII to around 1980 and there was a very high progressive tax. Up to 90% on the richest and they still remained the richest. As far as the capital flight you mention, that can be stopped, and as far as rich people not putting their money under a mattress you obviously didn't hear about the Panama papers, or for that matter, any of the stories about the trillions of dollars in hidden accounts. Piketty offers numerous ideas regarding progressive taxation which, if you are not in the top 10% of the population, should at least be considered. Is the "General" affiliated with, or paid by, any organization to write his "opinions".

Peyton Cook

These taxes are even more onerous than those when Biden was Vice President and the economy was stagnant at no more than 2%. Obama said it was the new “norm”. He also said “does he, meaning Trump have a “magic wand” to create a better economy. Trump did as we have seen in the first three years. Even now the economy is coming back even with the virus.

Dan Roman

The economy was doing well until overheated by Trumps unfunded tax cut, which blew up the national debt, made worse by the Federal pandemic response, and Trumps trade policies which blew up the deficit requiring Federal support for farmers and others (Horrors, Socialism!), which Americans are paying for the tariffs imposed.

The most intelligent statement Couvalt made is that he isn't a tax expert. Obviously.

Of the 5 sources he quoted the first espouses libertarian policies, the second conservative/neo-conservative, the other three tend to be non-partisan. But how else to deal with a national debt gone ballistic without making some changes in tax policy? We're waiting....

Peyton Cook

Gen. Covault is only providing the taxes that Biden is proposing. What’s wrong with that. And you are completely wrong about the stagnate economy that Obama left. There is plenty of evidence about the the robust economy that Trump created in his first ten years. It’s not the President who is responsible for the debt; it is Congress. At the present time Speaker Pelosi is proposing a $1 to 2 trillion spending bill which includes about $8 billion for mismanaged States such as II, NY, CA.

Barbara Misiaszek

Those"mismanaged" states actually provide significant monies to the U.S. Treasury so that "taker" states,like Kentucky ( Moscow Mitch) can make it through the night. Also, don't kid yourself, whoever is next President will be raising taxes. Who do you suggest may be best able to pay them?

John Misiaszek

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