Democratic Presidential candidate Senator Kamala Harris has a new tax plan and it’s Robin Hood in reverse: take from everyone to give to a few.
If she was elected President of the United States, on day one she says she would ax the 2017 tax cuts.
Former Vice President also said this week that he wants to get rid of the tax cuts too.
Kamala Harris and Joe Biden must not have read the New York Times article “Face It: You (Probably) Got a Tax Cut.” The Washington Post fact-checked both Biden and Harris on their claims about the tax cuts and gave them 4 Pinnochios.
The Tax Policy Center estimated that two out of three people paid less under the law. The Joint Committee on Taxation, a nonpartisan group of tax analysts for Congress, and the left-leaning Institute on Taxation and Economic Policy both found that every income group would see a tax cut on average.
Despite the Pinnochio-claims from liberal leaders like Senator Harris and Veep Biden that only the wealthy benefitted, the Tax Cuts and Jobs Act delivered important tax savings to working Americans and middle-class families.
By axing the entire tax law, they are advocating that we get rid of popular middle-class benefits:
Repeal the doubling of the standard deduction; instead, reduce it almost by half to $12,700 from $24,000.
Repeal the doubling of the child tax credit; instead, chop it back down to $1,000 from $2,000.
Increase tax rates on corporations and repeal tax cuts for small business owners.
Eliminate tax incentives for saving for educational expenses.
What does Harris propose instead?
Replace the tax cuts with her LIFT Act, a nearly $3 trillion refundable tax credit of up to $6,000 for couples earning under $100,000 a year or $3,000 for single tax filers earning $50,000 or less each year.
Harris proposes handing out the credit monthly or in one lump sum at the end of the year. There would be phase-out levels for this plan.
The question is whether this would leave families worse off than they are now because there are far more provisions that families can take advantage of that one simple tax credit. However, leave it to the left to find a one-size-fits-all solution.
Can Biden and Harris truly make a case for taking back tax relief from families, such as the $2,000 tax cut – a 58% reduction in federal taxes – from a typical family of four earning the median family income of $73,000 or the $1,304 tax cut – a 73% reduction in federal taxes – from a single mom earning $41,000.
Worse, they would turn our economy in a different direction by scaling back the policies that have pushed economic growth, small business optimism, consumer optimism, employment, and wage growth to record highs.
Expect more presidential candidates to denigrate the tax cuts, but know that what they will replace them with would likely help a few taxpayers at the expense of many others.