LETTER: Biden plan has higher taxes for the rich, breaks for middle class

To Ozaukee Press:

The Trump campaign wants you to believe Joe Biden is coming for your wallet.

While he is proposing a 10-year plan to increase tax revenue by $3.8 trillion, the focus will be on the wealthy and corporations, reversing many of the provisions of the 2017 Republican tax bill.

Those earning under $400,000 annually will not have a higher income tax rate.

Biden’s plan would: tax capital gains as ordinary income; raise the individual rate to 39.8% for those earning over $1 million; increase the corporate rate to 28%; end the stepped-up cost basis on inherited assets; return to the pre-2017 federal estate tax level; close real estate loopholes and fossil fuel breaks.

This isn’t confiscatory tax policy.

Those affected will remain very rich and profitable.

An analysis by the Tax Foundation estimates net income for the top 1% would only drop by 8%.

Biden is proposing several initiatives that will benefit the middle class, such as increasing the child and dependent care credit up to a maximum of $16,000, payable in advance.

His plan would forgive up to $50,000 in student load debt without tax liability and enhance access to 401(k) retirement plans for those employed by small businesses.

Biden’s most consequential proposal would be an expansion of the Affordable Care Act—allowing millions more to receive premium subsidies by removing income caps.

Premium contribution would be no more than 8.5% of income.

There would be lower drug prices and a public option.

Those with employer-based insurance could retain their coverage or comparison shop on the federal marketplace exchange.

Greg Melcher
Port Washington