The House’s Build Back Better Act (BBBA) raises the average top tax rate on personal income as high a 57.4 percent. The taxes will be the highest in the developed world. Our capital gains tax will be higher than China’s.
This is while 47% or more of Americans pay no taxes or very little.
It makes the US highly uncompetitive. America Last!
High-income taxpayers would face a surcharge on modified adjusted gross income (MAGI), defined as adjusted gross income less investment interest expense.
The surcharge would equal 5 percent on MAGI in excess of $10 million-plus 3 percent on MAGI above $25 million, for a total surcharge of 8 percent (equivalent to about a 9.1 percent tax rate on taxable income).
The plan would also redefine the tax base to which the 3.8 percent net investment income tax (NIIT) applies to include the “active” part of pass-through income—all taxable income above $400,000 (single filer) or $500,000 (joint filer) would be subject to a tax of 3.8 percent due to the combination of NIIT and Medicare taxes.
Under current law, the top marginal tax rate on ordinary income is scheduled to increase from 37 percent to 39.6 percent starting in 2026. Overall, the top marginal tax rate on personal income at the federal level would rise to 51.4 percent (or 52.5 percent on the basis of taxable income.
Adding personal income taxes, state, local, and sales taxes, this punitive taxation will be astronomical. However, that’s not the end of it. Janet Yellen, the Treasury Secretary wants to tax income that doesn’t even exist.
It’s thievery.
Watch:
Our Treasury Secretary thinks it’s normal to tax income a person doesn’t have, income that isn’t in the person’s bank account.
NEW – U.S. Treasury Secretary Yellen proposes a tax on unrealized capital gains to finance Biden’s “Build Back Better” plans.pic.twitter.com/pefi3PhoDe
— Disclose.tv (@disclosetv) October 24, 2021
We are definitely not competitive:
The House Democrats’ reconciliation bill would reverse many of the 2017 reforms while increasing burdens on businesses and workers.
From the standpoint of the International Tax Competitiveness Index, it would make the U.S. tax system less competitive.https://t.co/b974xT2NbQ pic.twitter.com/ncW3Sm5EcN
— Tax Foundation (@TaxFoundation) October 26, 2021
Biden wants people who pay 40% of the taxes now to pay their fair share. This is from a man who did nothing but play the role of partisan hack for nearly fifty years.
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