President Joe Biden has stirred controversy with recent remarks signaling a potential tax hike should he secure re-election, a move that comes at a time when many Americans are grappling with the economic strain of surging inflation rates under his presidency.
In a statement released on Wednesday, Biden addressed the looming expiration of the Tax Cuts and Jobs Act (TCJA) of 2017, a law he intends to let expire if re-elected. The TCJA, hailed for simplifying taxes and reducing tax burdens across various income brackets, faces uncertainty as Biden eyes its end.
“Donald Trump was very proud of his $2 trillion tax cut that overwhelmingly benefited the wealthy and biggest corporations and exploded the federal debt. That tax cut is going to expire. If I’m re-elected, it’s going to stay expired.”
Critics have pointed out the inconsistency in Biden’s approach, noting his prior commitment not to raise taxes for individuals earning less than $400,000 annually. Manhattan Institute Senior Fellow Brian Riedl expressed concerns, stating,
“Biden just endorsed a $2 trillion tax hike on earners under $400k (breaking his no-new-taxes pledge for such earners), and endorsed cutting the child credit down to $1,000.”
The White House’s mixed messaging on the TCJA further complicates the situation, with Biden’s administration advocating for both its expiration and extension for the bottom 98% of earners, showcasing the complexities of tax policy under the current administration.
As the debate over tax policy intensifies, Americans are left grappling with uncertainty amidst the backdrop of rising inflation rates, underscoring the importance of informed decision-making and fiscal responsibility in navigating these economic challenges.
