Joe BidenJoe BidenOvernight Energy & Environment — Presented by American Clean Power — Methane fee faces negotiations White House rejects latest Trump claim of executive privilege The No Surprises Act: a bill long overdue MORE is running the most liberal campaign in modern history. Do not take my word for it. Barack Obama said the same in his endorsement of Joe Biden. “He already has what is the most progressive platform of any major party nominee in history.” While the media devotes its coverage to social policy and identity politics, the economic plans of Biden are hardly written about, despite having great potential for harm.
A recent report by Yelp found that 60 percent of businesses around the country that shut down due to the coronavirus will remain closed forever. The unemployment rate stands at 8 percent, but many labor economists believe the true rate is much higher, perhaps above 11 percent. With the market in such a vulnerable state, it is shocking that Biden continues to push such restrictive and contractionary financial policy.
Biden has proposed raising the corporate tax rate to 28 percent, higher even than the 25 percent corporate tax rate of China. An economic study done by Kevin Hassett and Aparna Mathur several years back concluded that corporate tax hikes lead to a substantial decrease in wage rates and capital expenditures, and cause businesses to move operations out of the country. Further, the corporate tax rate is painted, by the left, as a form of punishment for the most wealthy. In reality, the majority of corporations are small and midsize businesses critical to communities.
Indeed, the Congressional Research Service has found that 55 percent of “c corporations” have fewer than five employees, and almost 99 percent of corporations and pass throughs have fewer than 500 employees. For our reference, Walmart has more than two million employees. The most dire effects of a corporate tax hike would be felt by smaller businesses and workers that Biden has claimed to be a champion for.
Biden has also vowed to reinstate the individual mandate, which violates his middle class tax pledge. He claims, “Nobody making under $400,000 would have their taxes raised.” However, the Internal Revenue Service has found that 74 percent of households liable for the individual mandate tax had an income of less than $50,000. For so many of these families, often forced to live paycheck to paycheck, a tax penalty of up to $2,000 can be devastating. A penalty for not being able to afford health care has always been detestable, but in times such as now it is simply cruel.
Biden has also promised to eliminate the Republican tax cuts. This would raise taxes on all income levels. According to calculations by Americans for Tax Reform, “If Biden repeals the tax cuts, a median income family of four will face an annual $2,000 tax increase and a median income single parent with one child will face an annual $1,300 tax increase.”
Moreover, Biden has vowed to ban right to work laws, which have already been enacted in more than two dozen states. These laws provide workers the freedom of employment without forced enrollment or forced payment to a labor union. The Pro Act, endorsed by Biden, would abolish these laws and reclassify those countless independent contractors as employees. In many cases, this is incredibly expensive for companies and can eventually lead to independent contractors earning less income. In California alone, the result has been a destructive loss in both income and jobs.
These are just a few cases of the policy of Biden, which would crush our hurting market. Pushing such ideas in a downturn is far from a realistic strategy that is usually indicative of a moderate ticket. These proposals are indicative of contractionary policy as a matter of principle.
Such a distinction is part of what makes this the most liberal campaign in modern history. It tells Americans that we cannot trust Biden to continue the recovery as president. He would deny us relief if a solution is seen as even moderately conservative. Enacting liberal policy will be the highest priority, even at the cost of the financial stability of Americans.
Isabelle Morales is communications associate at Americans for Tax Reform.