Potential Additional Taxes if Joe Biden Wins the 2020 Presidential Elections

In the upcoming presidential race, if Joe Biden manages to defeat President Donald Trump, the United States may face substantial changes, including significant tax increases. This article explores the potential impact on American taxpayers and the additional taxes that may be introduced.

Overview of Proposed Tax Increases

Biden has outlined a $10 trillion spending plan, which requires approximately $3 trillion in new taxes. The question of how this shortfall will be addressed has not been fully detailed, which is a concern for many. The current tax revenue, primarily from the Income Tax, brought in $3.46 trillion in 2019.

Potential Tax Increases and their Impacts

According to his proposals, individuals earning more than $400,000 annually may face a graduated tax rate, which is expected to revert income taxes to more "realistic" levels. Additionally, the influence of the "squad," including Bernie Sanders, on Biden’s policies suggests a strong push towards a wealth tax and increased capital gains taxes.

Specific Tax Types that May Be Introduced

1. Wealth Tax: This would involve an annual tax on total net worth. This type of tax is designed to address wealth inequality and ensure that richer individuals contribute more to the economy.

2. Capital Gains Tax: An increase in capital gains taxes will likely be implemented, affecting the sale of homes or financial assets. This move is justified to ensure that the economy remains stable and sustainable for all.

3. Corporate Income Tax: To cover the extra costs, corporate income tax increases are planned. This is expected to result in higher product prices to offset the additional burden on businesses.

4. Excise Tax, Fuel Tax, Utility Tax, and Carbon Tax: Additional taxes such as excise, fuel, utility, and carbon taxes may also be introduced to address various social and economic issues. These taxes can help fund environmental initiatives and reduce carbon emissions.

Concerns and Potential Backlash

While Biden aims to ensure that higher earners contribute more, the lack of transparency regarding the exact tax increases is a significant concern. With a track record of strong public support from the "squad" and Bernie Sanders, the feasibility of these tax increases remains uncertain. Biden risks backfiring if his tax proposals are perceived as damaging to the economy and livelihoods of American citizens.

Conclusion

The upcoming 2020 presidential election may bring about significant changes to the American tax system. If Joe Biden wins, the potential for substantial tax increases is clear, with the exact details of these changes yet to be fully disclosed. As we approach the election, it is essential to stay informed and aware of how these proposed changes might impact the American economy and taxpayers.