Biden's US Will See Highest Taxes In Western Society

Written By BlabberBuzz | Friday, 12 November 2021 05:15

If President Biden's Build Back Better agenda passes the Senate in its prevailing form, the U.S. would have the highest top income tax in the advanced world.

The average top tax rate would get to 57.4 percent, and the top rate would break the 50 percent sealing in all 50 states.

The top marginal tax rate at the federal level would be 51.4 percent. Most states deduct an income tax, the average being 6.0 percent, which would take the top rate to no less than 57.4 percent.

The top marginal tax rate on income at the federal level is currently 37 percent, scheduled to rise to 39.6 percent in 2026. The marginal rate only applies to those making above the top threshold of half a million dollars per year.

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The new top rate would surge the U.S. to the front of the pack of the 38-member Organization for Economic Co-operation and Development - ahead of Japan at 55.9 percent, France at 55.4 percent, AUStria at 55.0 percent, and Greece at 54.0 percent, according to the Tax Foundation.

The U.S. has an income tax rate of 42.9 percent, which leaves the country 23rd out of 38 countries. Hungary and the Czech Republic, for now, have the lowest top rates at 15 percent.

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 WATCH: TED CRUZ SLAMS THE NBA FOR LACKING BALLS AGAINST CHINAbell_image

Under the plan, eight states plus the District of Columbia would have top rates of more than 60 percent. Taxpayers in California would take the biggest hit at 64.7 percent, and New York, 66.2 percent.

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 STACEY ABRAMS THINKS THE GOVERNOR'S MANSION IS FOR HERbell_image

Under the plan, the richest U.S. households would face a 5 percent surcharge on modified adjusted gross income (MAGI) over $10 million, plus a 3 percent charge on MAGI above $25 million, according to the analysis.

The bill would further eliminate provisions in the tax code that allow rich taxpayers to bypass the 3.8 percent Medicare surtax and would boost IRS enforcement to target wealthy tax cheats.

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 KAMALA'S STAFF CONTINUES TO EVAPORATE AS SHE TANKSbell_image

On the corporate side, the bill would establish a 15% minimum tax on large corporations and a 1% surcharge on corporate stock buybacks.

Penn Wharton estimates that the Build Back Better bill, which Democrats assume would cost $1.75 trillion over 10 years and bring in $2 trillion in revenue, would really cost $1.87 trillion while raising $1.56 trillion in revenue over 10 years.

Penn Wharton thinks that if the provisions of the bill, aside from the green energy tax cuts, are made permanent, the real cost of the bill would be $3.98 trillion, while the tax revenue would linger at $1.55 trillion, over 10 years.

The most significant differences between the White House's calculations and Wharton's were the 15 percent minimum tax on corporations. The tax applies to companies that reported over $1 billion in income for three straight years.

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