President Joe Biden has called for billions and billions of dollars in unnecessary new spending, saying he will pay it off by raising taxes only on those who earn $ 400,000 or more each year.
He is lying.
Biden and his liberal allies in Congress are currently trying to get Congress to spend $ 3.5 trillion in new spending on a pork barrel wish list devised by radical socialist members of his party.
They claim they will pay for it by rolling back President Donald Trump’s tax cuts – which until the Chinese virus pandemic had produced the best economy America has seen in a generation – while increasing taxes. capital gains taxes at levels even higher than European democracies. socialist countries.
These tax increases alone will stifle investment in American jobs, further hampering our ability to reinvigorate our working class and compete with China.
Worse yet, runaway inflation spurred by such reckless spending combined with sluggish economic growth will return America to the stagflation of the 1970s – or worse.
It’s already a nightmare scenario for West Virginia families, but it will be compounded by potential tax increases Biden and Congress Democrats might try to slip into their spending bills.
One of these increases is called a âfinancial transaction taxâ. This is pushed by Senator Bernie Sanders, I-Vt. – which in itself should already be a red flag for freedom-loving Americans.
The Socialist Democratic senator and his allies want to impose a tax of at least 0.1% on all transactions of stocks, bonds or mutual funds. While billed as a tax on the super-rich, it will actually hurt working-class Americans.
This is because Bernie’s Tax does not exclude common tax-exempt savings programs used by ordinary people, including 401 (k) accounts and 529 college savings accounts. This means that every time you deposit money into your retirement account or your child’s SMART529 it will be taxed. Every time you rebalance your portfolio, it will be taxed.
Every time you switch your savings from stocks to bonds, it will be taxed.
The reason we’re exempting 401 (k) and 529 accounts is to make it easier for regular and working Americans to save for retirement and their children’s future. This tax will make it more difficult for them to build up savings.
The tax also does not exempt pension funds, so it will hurt investment funds that thousands of unionized workers and public employees and their families rely on for their retirement income.
It’s just a tax on the middle class that they’re trying to squeeze into this package.
Another would take even more money out of consumers’ pockets.
Lawmakers are also considering what they call the “Tobacco Tax Fairness Act,” which would increase taxes on products that help reduce harm to people addicted to tobacco products as well as to tobacco addicts. tobacco products containing less nicotine.
Instead of encouraging cigarette smokers to use other less harmful products by reducing taxes and fees, this bill would treat these other products in the same way as more harmful cigarettes.
Some commonly used products, such as vapor products – which studies have shown are 95% less harmful than cigarettes – would see their prices increase dramatically. This would lead to fewer customers choosing them as an alternative, locking them into the use of tobacco products.
The proposed tax hikes would also increase taxes on popular products like dip to 16 times the current tax rate. If the federal government wants to help these people, then it should keep the prices lower.
Not only would this make it harder for those looking to quit smoking, it would devastate small businesses in West Virginia as well.
About 90 percent of these products are sold in convenience stores, including many family-owned independent stores that thrive here in West Virginia. The 2,200 retailers that sell these products are the backbone of our small business economy.
This tax hike would not only lead to lower sales of these products, but also reduce overall store sales, as many consumers also buy other things when they come to buy these products.
The tax increase could lower the sales of these essential small businesses, leading to layoffs and more vacant storefronts in our state. The pandemic has already hurt these businesses enough – we don’t need to exacerbate the problem.
These are just two examples of taxes that will hurt West Virginia’s working class and small business, who else knows what other ploys the Liberals in Washington will devise to pay for their $ 3.5 billion boondoggle.
If President Biden is serious about helping this country’s middle class, he must stop pushing for tax hikes and irresponsible spending plans that hurt those he claims to support.
Riley Moore, a Republican, is the 25th treasurer of the state of West Virginia.