By yourNEWS Media Newsroom
The campaign for former President Donald Trump, alongside other Republicans, has launched a scathing attack on President Joe Biden’s latest budget proposal, labeling it as the “largest tax hike ever.” The criticism centers on Biden’s fiscal year 2025 budget plan, which outlines $7.3 trillion in total spending, including a controversial $4.9 trillion tax increase over the next decade. This plan, according to Republican members of the House Budget Committee, would push U.S. debt to a record $54 trillion by 2034.
A spokesperson for Trump’s campaign highlighted the burden this plan would place on American families, stating, “Biden’s plan would take nearly $40,000 dollars away from the average American family, who is already losing thousands every year due to Biden’s record-high inflation crisis.” This comes at a time when many Americans are feeling the pinch of rising prices and economic uncertainty.
The proposed tax hikes have been outlined as primarily affecting corporations and the wealthiest individuals in America. Key components of Biden’s tax proposal include increasing the corporate tax rate from 21% to 28%, implementing a 25% minimum tax rate on households worth more than $100 million, and quadrupling the corporate stock buyback tax to 4%. Additionally, the plan calls for raising capital gains tax rates and the Medicare tax paid by wealthy Americans, while also aiming to close the carried interest loophole used by hedge fund managers.
Economic analysts have voiced concerns about the potential negative impacts of these tax increases. A recent report by the Tax Foundation suggests that Biden’s tax plan could lead to a 2.2% reduction in economic output, a 1.6% decrease in wages, and the loss of approximately 788,000 full-time jobs. The report specifically pointed to higher corporate taxes as the largest contributor to these adverse effects.
In contrast, Trump’s campaign has reiterated his commitment to tax reductions, arguing that his policies would revitalize America’s energy sector, reduce living costs, and address the national debt. “When President Trump is back in the White House, he will advocate for more tax cuts for all Americans,” the spokesperson stated.
As the general election approaches, the debate over tax policies is expected to intensify. Trump has pledged to make his tax cuts permanent if re-elected, while Treasury Secretary Janet Yellen indicated that Biden would seek to maintain reductions for those earning less than $400,000. However, the Congressional Budget Office has warned that extending the Tax Cuts and Jobs Act, set to expire at the end of 2025, would add an estimated $3.7 trillion to the federal deficit, underscoring the challenging fiscal decisions ahead.