Rights for the rich - WSJ

President Biden is trying to save his $ 3.5 trillion tax and spending plan by playing the class card, saying it will help “workers” who “s...


President Biden is trying to save his $ 3.5 trillion tax and spending plan by playing the class card, saying it will help “workers” who “struggle” to pay the bills. It makes it sound like a safety net program for the poor rather than what it really is: a driver of government grants for everyone, including the rich.

It’s one of the political secrets Democrats prefer not to talk about, although it is central to their political agenda to hook even the upper middle class into government. Here are among the many handouts for the rich from Bernie Sanders-Joe Biden-

Nancy Pelosi

invoice.

***

• The expanded child tax credit has become a monthly government check that transfers large sums of money from childless taxpayers to financially secure middle-class families. The allowance is now $ 3,600 per child under 6 and $ 3,000 for ages 6 to 17. A married couple earning $ 150,000 per year with four children (two under the age of 6, two above) would be entitled to $ 13,200 per year.

As credits gradually disappear with income, the same family earning $ 400,000 could still get up to $ 8,000 per year (an income level Republicans surpassed in 2017). Mr Biden recently said families earning over $ 400,000 should pay more taxes because “that’s a lot of money.” He wants to tax them more and then get political credit for the handouts.

• A new fee caps child care costs at 7% of income and was initially limited to parents earning up to 200% of their state’s median income. But progressives have removed the cap on committee so that it covers the wealthiest voters. The law is now universal.

The median American income for a family of four is around $ 90,000. These families would pay 2% of their income annually ($ 1,800) for child care. Taxpayers would pay the rest, about $ 21,000 for two children in day care, according to estimates by Rachel Greszler of the Heritage Foundation. In wealthy states like Massachusetts, where child care costs are higher, a family of four earning $ 200,000 a year could receive $ 23,000. Even with an income of $ 367,000, this Bay State family could get $ 10,000 in grants (as long as they self-certify that they have less than $ 1 million in assets).

• Democrats also want paid family leave—About two-thirds of the average salary for up to 12 weeks per year for all family care. This would apply to full-time and part-time employees, and in the case of newborns, both parents would be entitled to leave. This means that a married couple with a newborn baby – each earning $ 200,000 (Mr. Biden’s definition of a “rich” household) – could each receive more than $ 1,000 in weekly benefits, which would translate into $ 24,000 of paid vacation in one year. A couple earning $ 100,000 each would be entitled to roughly the same amount.

• Democrats are also expanding ObamaCare. This spring’s Covid bill removed the income cap (400% of the poverty level) on those eligible for grants. Brian Blase of the Galen Institute has calculated this windfall for high incomes. It’s especially important for older Americans or those who live in areas of the country where the benchmark premium (used to calculate benefits) is higher than the national average.

A family of five with a 60-year-old head of household in Prescott, Arizona, for example, could earn $ 350,000 per year while still being eligible for an ObamaCare grant of $ 21,309. Even with an income of $ 500,000, this family would still receive $ 8,559 in federal dollars for health care.

• The invoice includes a whopping new $ 12,500 electric vehicle tax credit. Since electric vehicles cost between $ 10,000 and $ 15,000 more than similar gasoline vehicles, this money will mostly go to affluent coastal residents, particularly in California. A couple can earn $ 800,000 per year while still being eligible for a portion of the credit.

• The biggest subsidy of all may be the return of the national and local tax deduction. President Nancy Pelosi has promised her members “significant” relief above the current limit of $ 10,000. Only about 15% of taxpayers itemize their deductions, and most of those who would benefit from a higher cap are the wealthy, again mostly in wealthier coastal states.

Democrats want to subsidize the upper middle class this way because they know the wider the benefits, the more politically secure a program. This is the way it works politically in Europe, with one big caveat: the middle class that receives the benefits also pays higher taxes. Democrats will send this bill to the middle class when the cost of their rights to the rich is too entrenched to be repealed.

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Newsrust - US Top News: Rights for the rich - WSJ
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