During the campaign, Joe Biden proposed a massive tax increase, far beyond what either Barack Obama or Hillary Clinton put forth when they ran for the White House.
Some people speculate that Biden isn’t actually that radical, and that his class-warfare agenda was simply a tactic to fend off Bernie Sanders, so it will be interesting to see how much of his political platform winds up as actual legislative proposals in 2021.
That being said, we can safely assume three things.
- Biden will propose higher taxes.
- Those tax increases will target upper-income taxpayers such as entrepreneurs, investors, and business owners.
- Those tax increases will be a very bad idea.
The main argument that Biden and his supporters will use to justify such a plan is that “rich” taxpayers are not paying their fair share.
More specifically, we’ll be told that upper-income households are not pulling their weight thanks to the cumulative impact of the Reagan tax cuts, the Bush tax cuts, and the Trump tax cuts.
There’s just one problem with this argument. As shown by this multi-decade data from Brian Riedl’s chartbook, it’s wildly, completely, and utterly inaccurate. The richest 20 percent are now shouldering a much greater share of the tax burden.
Every other group, by contrast, is now paying a smaller share of the tax burden.
Some folks on the left assert that the above chart is misleading. They say the chart merely shows that the rich have been getting richer and everyone else is falling behind.
The solution, they argue, is to catch up with the rest of the world by making the tax system more “progressive.”
Their assertions about income trends are wrong, but let’s leave that for another day and focus on so-called progressivity.
Once again, Riedl’s chartbook is the go-to source. As shown in this chart, it turns out that rich people pay a higher share than their counterparts in every other developed nation.
Please notice, by the way, the additional explanation in the lower-left portion of the chart, The numbers displayed do not include the value-added taxes that are imposed by every other nation, which are regressive or proportional depending on the time horizon. This means that the overall American tax code is far more tilted against the rich than shown by this chart.
But the key point to understand, as I’ve noted before, is that difference between Europe and the United States is not the taxation of the rich. The real reason that America has the most progressive tax system is that European nations impose much heavier taxes on lower-income and middle-class taxpayers.
P.S. At the risk of stating the obvious, this is not desirable since class-warfare taxes generally cause the most economic damage on a per-dollar-collected basis.
P.P.S. It’s also worth remembering that higher tax rates on the rich don’t necessarily lead to higher tax revenues.
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] look at his class-warfare tax proposals. Consider this Part VI in a series (Parts I-V can be found here, here, here, here, and here), and we’ll use data from the folks at the Tax […]
[…] look at his class-warfare tax proposals. Consider this Part VI in a series (Parts I-V can be found here, here, here, here, and here), and we’ll use data from the folks at the Tax […]
[…] 2020 and 2021, I wrote a four-part series (here, here, here, and here) about Biden’s class-warfare tax […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] takeaway is that the United States should not throw away its competitive advantage. Yet another reason to reject Joe Biden’s class-warfare fiscal […]
[…] takeaway is that the United States should not throw away its competitive advantage. Yet another reason to reject Joe Biden’s class-warfare fiscal […]
[…] if you read this, this, this, and this, you already knew […]
[…] if you read this, this, this, and this, you already knew […]
[…] since Joe Biden is motivated by class warfare (see here, here, here, and here), he apparently doesn’t care about the economic […]
[…] since Joe Biden is motivated by class warfare (see here, here, here, and here), he apparently doesn’t care about the economic […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] explained here, here, here, and here, I don’t like Biden’s class-warfare tax […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] on the left claim that punitive tax rates are necessary for “fairness,” yet the United States already has the developed world’s most “progressive” tax […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] because the current system is unfair, yet there’s never any recognition that the United States collects a greater share of revenue from the rich than any other developed nations (not because our tax rates on the rich are higher than average, […]
[…] because the current system is unfair, yet there’s never any recognition that the United States collects a greater share of revenue from the rich than any other developed nations (not because our tax rates on the rich are higher than average, […]
[…] the current system is unfair, yet there’s never any recognition that the United States collects a greater share of revenue from the rich than any other developed nations (not because our tax rates on the rich are higher than average, […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] on the left claim that punitive tax rates are necessary for “fairness,” yet the United States already has the developed world’s most “progressive” tax […]
[…] explained here, here, here, and here, I don’t like Biden’s class-warfare tax […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] Biden Administration’s approach to tax policy is awful, as documented here, here, here, and […]
Reblogged this on kommonsentsjane and commented:
Reblogged on kommonsentsjane/blogkommonsents.
It’s also worth remembering that higher tax rates on the rich don’t necessarily lead to higher tax revenues. Even controlling for income inequality the U.S. has the most progressive income/payroll tax code in the Organization for Economic Cooperation and Development.
The real problem for the Democrats is they have a disease OF THE BRAIN called “SOCIALISM/RADICALISM.” This is a disease which has been circulating in foreign countries throughout history and the fact that it has been tried over and over and continues to fail. Yet, due to the Democrats lack of brain functioning properly – they continue to put it into play hoping that a mistake will occur and it works.
kommonsentsjane
[…] Biden Administration’s approach to tax policy is awful, as documented here, here, here, and […]
[…] with Fox Business last week, I touched on three policies (easy money from the Fed, Biden’s class-warfare tax agenda, and the ever-increasing burden of federal spending) that create risks […]
[…] on the left claim that punitive tax rates are necessary for “fairness,” yet the United States already has the developed world’s most “progressive” tax […]
[…] left claim that punitive tax rates are necessary for “fairness,” yet the United States already has the developed world’s most “progressive” tax […]
[…] not referring to President Biden’s destructive tax plan (which you can read about here, here, here, and here). Instead, today’s column will focus on the tax increase being considered […]
[…] not referring to President Biden’s destructive tax plan (which you can read about here, here, here, and here). Instead, today’s column will focus on the tax increase being […]
[…] I wonder what they would say if confronted with the data showing that the United States already collects a greater share of tax revenue from the rich than any other OECD […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] Part I, I showed that the tax code already is biasedagainst upper-income […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] I wonder what they would say if confronted with the data showing that the United States already collects a greater share of tax revenue from the rich than any other OECD […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] explained here, here, here, and here, I don’t like Biden’s class-warfare tax […]
[…] Part I, I showed that the tax code already is biasedagainst upper-income […]
[…] Part I, I showed that the tax code already is biased against upper-income […]
[…] explained here, here, here, and here, I don’t like Biden’s class-warfare tax […]
[…] explained here, here, here, and here, I don’t like Biden’s class-warfare tax […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] economista Daniel Mitchell señaló hace unos meses que el 20 % de las personas con mayores ingresos en Estados Unidos ya paga alrededor […]
[…] economista Daniel Mitchell señaló hace unos meses que el 20 % de las personas con mayores ingresos en Estados Unidos ya paga alrededor […]
[…] I wonder what they would say if confronted with the data showing that the United States already collects a greater share of tax revenue from the rich than any other OECD […]
[…] economista Daniel Mitchell señaló hace unos meses que el 20 % de las personas con mayores ingresos en Estados Unidos ya paga alrededor […]
[…] I wonder what they would say if confronted with the data showing that the United States already collects a greater share of tax revenue from the rich than any other OECD […]
[…] Daniel Mitchell pointed out a few months ago that the top 20 percent of income earners in America already pay about 70 percent of the taxes. My guess is that if the top 20 […]
[…] Daniel Mitchell pointed out a few months ago that the top 20 percent of income earners in America already pay about 70 percent of the taxes. My guess is that if the top 20 […]
[…] have a four-part series (here, here, here, and here) about the conceptual downsides of Joe Biden’s class-warfare approach to […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] with Fox Business last week, I touched on three policies (easy money from the Fed, Biden’s class-warfare tax agenda, and the ever-increasing burden of federal spending) that create risks […]
[…] with Fox Business last week, I touched on three policies (easy money from the Fed, Biden’s class-warfare tax agenda, and the ever-increasing burden of federal spending) that create risks […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] have a four-part series (here, here, here, and here) about the conceptual downsides of Joe Biden’s class-warfare approach to […]
[…] have a four-part series (here, here, here, and here) about the conceptual downsides of Joe Biden’s class-warfare approach […]
[…] I wonder what they would say if confronted with the data showing that the United States already collects a greater share of tax revenue from the rich than any other OECD […]
[…] I wonder what they would say if confronted with the data showing that the United States already collects a greater share of tax revenue from the rich than any other OECD […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] shared three reasons why Biden’s tax plan is misguided (the tax code is biased against rich taxpayers, the tax hike would have Laffer-Curve implications, and it […]
[…] shared three reasons why Biden’s tax plan is misguided (the tax code is biased against rich taxpayers, the tax hike would have Laffer-Curve implications, and it […]
[…] shared three reasons why Biden’s tax plan is misguided (the tax code is biased against rich taxpayers, the tax hike would have Laffer-Curve implications, and it would saddle […]
[…] In Part I of this series, I explained that President-Elect Biden’s soak-the-rich agenda didn’t make sense because the internal revenue code already is very biased against upper-income taxpayers. Indeed, the U.S. tax system is even more weighted against the rich than the tax codes of nations such as France and Sweden. […]
[…] Part I of this series, I explained that President-Elect Biden’s soak-the-rich agenda didn’t make sense […]
[…] with Fox Business last week, I touched on three policies (easy money from the Fed, Biden’s class-warfare tax agenda, and the ever-increasing burden of federal spending) that create risks […]
[…] is why I’ve pointed out that Biden’s plan will make the tax code more punitive, not more equitable and efficient as Lane […]
[…] is why I’ve pointed out that Biden’s plan will make the tax code more punitive, not more equitable and efficient as Lane […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] with Fox Business last week, I touched on three policies (easy money from the Fed, Biden’s class-warfare tax agenda, and the ever-increasing burden of federal spending) that create risks […]
[…] with Fox Business last week, I touched on three policies (easy money from the Fed, Biden’s class-warfare tax agenda, and the ever-increasing burden of federal spending) that create risks for the economy […]
[…] them control of the Senate, which will dramatically increase the danger that Biden will push his class-warfare tax […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] Biden didn’t include a wealth tax in his class-warfare campaign manifesto, but Bernie Sanders and Elizabeth Warrenboth pushed for the idea. And there are plenty of […]
[…] Biden didn’t include a wealth tax in his class-warfare campaign manifesto, but Bernie Sanders and Elizabeth Warren both pushed for the idea. And there are plenty […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] But some policies will move in the wrong direction. Biden is awful on tax policy, for instance, though I expect Republicans in the Senate will block his class-warfare agenda. […]
[…] In Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, particularly since Republicans almost certainly will wind up controlling the Senate. […]
[…] Part I of this series, I expressed some optimism that Joe Biden would not aggressively push his class-warfare tax plan, […]
There can be no such thing as a: ‘fair share’, for taxation is extortion. It is extortion, because all governments are illegitimate and criminal. They will exist so long as most people go through life half-asleep.
Reblogged this on Boudica BPI Weblog.
Reblogged this on boudica.us.
[…] The Case Against Biden’s Class-Warfare Tax Policy, Part I […]
Reblogged this on Gds44's Blog.
“P.S. At the risk of stating the obvious, this is not desirable since class-warfare taxes generally cause the most economic damage on a per-dollar-collected basis.”
What is the “this” that you are referring to?
Don’t waste time, Biden will never get in.
Your first graph would not convince anyone on the left. They would say that the graph is simply a result of income inequality getting worse, with the top quintile paying a higher percentage of total taxes simply because they’ve gotten richer.
For example, suppose we had a flat tax. If the incomes of the top 20% doubled while everyone else’s stayed the same, their share of total taxes would also go up, even though their percentage stayed the same.