LETTER: Biden/Harris will increase taxes
To the Editor:
How will the Biden/Harris tax and spend plan affect Ridgefielders? Two resources give a hint of the tax plans of a Biden/Harris administration. First, Mr. Biden has repeatedly said he would repeal the 2017 Tax Cuts and Jobs Act (TCJA) on “Day 1” of his presidency.
This means a tax increase for most income levels. The average tax reduction was $2,000 under TCJA. That will disappear but the wealthy will have their SALT deduction reinstated, mitigating their taxes.
Second, the “Democratic Party Platform,” issued on July 31, gives more detail on additional tax and spending plans. The Platform calls for even more progressive tax rates than existed prior to 2017, along with new estate taxes and new investment taxes. The net tax burden to almost all Ridgefielders will increase, some dramatically.
Biden’s promise to repeal the TCJA, and the policies stated in the platform also mean the reversion of corporate tax rates to their world-record high. Higher corporate and investor taxes may not just increase some Ridgefielders’ tax burden; it may cost some their jobs.
But the real financial impact of the Biden/Harris agenda for Ridgefielders can only be obliquely inferred from the speeches and the platform, because the spending plans described there require dramatically expanded federal coffers. Even if the tens-of-trillion-dollar cost of the Green New Deal could be ignored or eliminated, the goals in the platform including free health care/housing/education for vast swaths of the population (including an expanded immigrant population), require new borrowing or new taxation. The former leads to an indiscriminate “tax” via inflation; the latter may take the form of new types of taxes, e.g., VATs, carbon taxes, etc. or fees on formerly untaxed entities.
In the style of the now infamous quote, if you like your current household budget, you can’t keep it.
Susan G. Kleinmann
Ridgefield, Oct. 15