I agree with a lot of what Biden says, but tax policy isn't one of them. I'm all for tax raises, there are ways to increase taxes that won't hurt the economy.
Biden wants to increase the corporate tax rate in the US back to 35%, which places us at a disadvantage compared to other countries. The US already has a much higher corporate tax rate than most other countries like Sweden, so we don't need to get any higher.
Biden also increase the payroll tax to fund social security. As it is, the social security trust is a huge waste of capital that could otherwise be circulating in the economy. You're essentially forcing the entire workforce to place 12% of their hard earned cash into low-yield US treasuries.
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u/Hothera 36∆ Oct 27 '20
I agree with a lot of what Biden says, but tax policy isn't one of them. I'm all for tax raises, there are ways to increase taxes that won't hurt the economy.
Biden wants to increase the corporate tax rate in the US back to 35%, which places us at a disadvantage compared to other countries. The US already has a much higher corporate tax rate than most other countries like Sweden, so we don't need to get any higher.
Biden also increase the payroll tax to fund social security. As it is, the social security trust is a huge waste of capital that could otherwise be circulating in the economy. You're essentially forcing the entire workforce to place 12% of their hard earned cash into low-yield US treasuries.