Americans need to be aware of these 8 Biden Tax Hikes. Do not be blindsided by the new the Democrat Reconciliation Bill. In this article, we are going to go over what these increases mean so you are aware of what is to come. Below is a quick overview of what you can expect. Continue reading for a brief breakdown on each of these new increases.
- $12 Billion Crude Oil Tax – Increase Household Costs
- $1.2 Billion Coal Tax – Increase Household Energy Bills
- $6.5 Billion Natural Gas Tax – Increase Household Energy Bills
- $225 Billion Corporate Income Tax Hike – Passed on to Households
- $74 Billion Stock Tax – Affect your 401(k)s, IRAs, and Pension Plans
- 95% Federal Excise Tax – Affects American Pharmaceutical Manufacturers
- $52 Billion Income Tax Hike – Affects Mid-Sized & Family Businesses
- $204 Billion Increasing IRS Staff for Audits – Affecting Working Households & Small Businesses
Biden Tax Hike #1 – $12 Billion Crude Oil Tax
Democrats have included a 16.4 cents-per-barrel tax on crude oil and imported petroleum products. This hike will be noticeable to consumers in the form of higher gas prices.
Biden Tax Hike #2 – $1.2 Billion Coal Tax
The bill would more than double current excise taxes on coal production. This bill will increase the tax rate on coal from subsurface mining from $0.50 per ton to $1.10 per ton. Meanwhile, the tax rate on coal from surface mining would increase from $0.25 per ton to $0.55 per ton.
JCT estimates that this will raise $1.2 billion in taxes that noticeable to consumers via higher electricity bills.
Biden Tax Hike #3 – $6.5 Billion Natural Gas Tax
The new bill imposes a regressive tax on American oil and gas development. It will increase the cost of energy bills in American households. The Congressional Budget Office estimates this new tax for Natural Gas will increase citizen taxes by $6.5 billion.
Biden Tax Hike #4 – $225 Billion Corporate Income Tax Hike
Democrats implemented a 15% corporate alternative minimum tax on the financial statement income of American businesses reporting $1 billion in profits for the previous three years. The American companies effected employ millions of American middle-class workers.
This tax increase will affect families in the form of higher prices, lower wages, and less jobs.
Biden Tax Hike #5 – $74 Billion Stock Tax
When Americans sell shares of stock back to a company, a new federal excise tax will reduce the value of household retirement savings. Restricting the stock buybacks and raising taxes will harm the savings of any individual with a 401(k), IRA or pension plan. This will also affect union retirement plans.
Biden Tax Hike #6 – 95% Federal Excise Tax
A 95 percent excise tax on prescription drugs will be put into effect. This will increase the price Americans pay for prescription pharmacy drugs.
Biden Tax Hike #7 – $52 Billion Income Tax Hike
This tax hike will be imposed on businesses with declared losses. This widens the net of taxable income. The Joint Committee estimates that the provision will increase taxes by $52 billion.
This will raise taxes on manufacturers, retailers or other capital-intensive businesses that experience large business losses in any year due to the cost of wages, rent, new equipment, inventory, and interest payments.
Biden Tax Hike #8 – $204 Billion Increasing IRS Staff for Audits
Granting $80 billion to largely increase the size of the IRS with 87,000 new agents and auditors is something we all should be concerned about. This will dramatically increase the number of audits on working households and small businesses. The IRS claims they will perform an additional 1.2 million annual audits under the plan. Democrats claim the increased spending on enforcement would net $124 billion for the federal government.
As you can see, this new Democrat Reconciliation Bill will not be benefiting the American citizens. This will largely impact the middle class, and it will certainly be noticeable for all of us.
Stay prepared and on top of your finances.