A Trump economist has raised concerns about the potential tax rates under a Biden presidency if re-elected in November. Heritage Foundation economist Steve Moore described Biden's proposed tax rates as 'scary' during an interview on Thursday. Biden's trillion-dollar budget for 2025 includes plans for $5.5 trillion in new taxes, with significant implications for various tax categories.
One of the key points of contention is the proposed increase in the capital gains tax rate, which would nearly double under Biden's plan. Additionally, Biden's budget proposal includes a call for a 25% minimum tax rate on households valued at over $100 million. This proposal also involves raising the capital gains tax rate, quadrupling the corporate stock buyback tax to 4%, increasing the corporate tax rate to 28%, and boosting the Medicare tax paid by wealthy Americans.
Furthermore, Biden's plan includes implementing a global minimum tax on multinational corporations and closing the carried interest loophole commonly utilized by private equity and hedge fund managers. These proposed changes aim to generate additional revenue for the government and address income inequality by targeting high-income individuals and corporations.
While Biden's tax proposals are intended to fund various government programs and initiatives, critics like Steve Moore warn of potential negative consequences, such as reduced investment incentives, economic slowdown, and wealth redistribution. The debate over tax policy and its impact on the economy is likely to remain a central issue in the upcoming presidential election, with both sides presenting contrasting views on the best approach to taxation and fiscal policy.
