Tag: taxes

The single biggest provision in Biden bill in first half-decade is tax cut for wealthy

The most expensive item over the first half-decade of President Joe Biden’s climate and social spending legislation is a tax cut for the wealthy.

The Democratic Build Back Better Act, which passed the House on Friday morning, raises the current $10,000 cap on federal tax deductions for state and local taxes to $80,000, a move that leads to a significant tax cut for high earners in states with high taxes.

The provision dwarfs many of the other priorities in the legislation and was included under pressure from a vocal contingent of Democrats from high-tax blue states.

The nonpartisan Committee for a Responsible Federal Budget said that increasing the SALT cap to $80,000 through 2025 would end up costing the federal government $275 billion in revenue — an amount that is $5 billion more than the next costliest provision in the Build Back Better Act.

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Joe Biden Wants To Have The IRS Harass Americans While Dodging It Himself

The White House fears that an impending Congressional Budget Office analysis will say Democrats’ spending bill would increase federal deficits. The dispute seems unsurprising, given the myriad budgetary gimmicks in the bill—but not for the reasons one might expect.

Ignore for a moment the fact that the bill contains ten years of tax increases to pay for a few years’ of spending that Democrats later hope to extend, meaning that independent budget analysts have pegged the bill’s true ten-year cost not at $1.75 trillion but nearer to $5 trillion. Ignore too the fact that front-loading the bill’s spending means it will almost certainly increase federal deficits in the short-term, exacerbating inflation at a time price increases are already at 30-year highs.

Instead, the proximate dispute with CBO concerns whether an increase in tax enforcement will yield as much revenue as Treasury claims. On that front, one of the biggest arguments against the Biden administration’s position comes via Joe Biden himself.

Dueling Tax Estimates

The New York Times reported Monday that “the White House has begun bracing lawmakers for a disappointing estimate” from CBO, and is “urging lawmakers to disregard the budget office assessment, saying it is being overly conservative in its calculations.” While administration officials say additional tax enforcement will generate $400 billion in new revenue, CBO Director Philip Swagel on Monday said he stood by the agency’s September estimate that enhanced enforcement authority will net roughly $120 billion.

The difference between the lower and higher revenue figures could determine whether the bill gets scored as a budget-saver or budget-buster. Treasury has therefore come out swinging at CBO, with Assistant Treasury Secretary Ben Harris calling the office’s methodology “patently absurd” in an interview with the Times.

Whither IRS Enforcement?

But given his own boss’ conduct, Mr. Harris doth protest too much on tax enforcement. After leaving the vice presidency in early 2017, Joe Biden and his wife Jill created two S-corporations, and characterized most of their book and speech earnings as profits from those corporations rather than taxable wages.

These maneuvers allowed the Bidens to dodge nearly $517,000 in payroll taxes. The Tax Policy Center called the Bidens’ actions “pretty aggressive.” And a recent Congressional Research Service report outlined several instances in which federal courts agreed with the IRS in requiring S-corporations to pay back taxes—all of which arguably applied to the Bidens.

Yet despite the Bidens’ public release of their returns, and coverage of the irregularities surrounding them, no news has yet emerged of an IRS audit. Why?

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“Inappropriate Giveaway of Galactic Proportions”: Outrage Over $10 Billion Taxpayer Gift to Bezos Space Obsession

Progressives on Wednesday slammed what they called a proposed $10 billion handout to Amazon founder Jeff Bezos—the world’s first multi-centibillionaire—in the 2022 National Defense Authorization Act as a “giveaway of galactic proportions” in the face of growing wealth inequality and the inability of U.S. lawmakers to pass a sweeping social and climate spending package.

According to Defense News, Senate Majority Leader Chuck Schumer (D-N.Y.) plans to merge the $250 billion U.S. Innovation and Competition Act of 2021 (USICA)—aimed largely at countering the rise of China—with next year’s NDAA, which would authorize up to $778 billion in military spending. That’s $37 billion more than former President Donald Trump’s final defense budget and $25 billion more than requested by President Joe Biden. The NDAA includes a $10 billion subsidy to Bezos’ Blue Origin space exploration company.

“Providing Jeff Bezos with $10 billion of taxpayer money would be an inappropriate giveaway of galactic proportions,” Stuart Appelbaum, president of the Retail, Wholesale, and Department Store Union (RWDSU), said in a statement Wednesday.

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How Many Guns Does the IRS Have?

President Joe Biden and Democrats who support his multi-trillion dollar “Build Back Better” spending agenda want to empower the IRS with even more resources. 

According to the Heritage Foundation, the bill would increase the IRS budget by 70 percent. 

“House Democrats’ massive tax-and-spending package would reward the unpopular tax-collecting agency by increasing its current budget by more than 70%. Over the next 10 years, the bill would add $88 billion of new funding for the IRS, including $45 billion dedicated to enforcement, $27 billion for operations support, $5 billion for new business systems, $4 billion to administer green energy initiatives, and $4 billion to administer child tax credits,” Heritage analyzes. “Meanwhile, it dedicates less than $2 billion for taxpayer services.”

“Between the huge sums aimed directly at enforcement activities and operations support, expect a large majority of the $88 billion of new IRS funding to directly or indirectly support things like asset monitoring, audits, taxpayer investigations, and legal actions against taxpayers,” they continue. 

“On the issue of enforcement actives and operations support,” Americans for Tax Reform is reminding taxpayers the IRS already has substantial authority and power. This includes ownership of thousands of guns and agents who can be deployed to use them. 

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How Many Zombie Agencies Does Government Need?

How many federal agencies do we pay for?  I bet you think, as I once did, that a quick internet search would tell.  But researching for an essay a couple of years ago, I found numbers varying from 78 to 158, and websites saying the exact number was impossible to determine. 

Looking at the USA.gov website recently, I discovered a tab for Federal Agencies A to Z (actually there are none past W).  Scrolling around the list for two days, subtracting duplicate listings, like Useless Policy, Office of and Office of Useless Policy, I counted 456 (and a few more as I checked some links while drafting this essay). 

The large number of agencies was my first, but not my only surprise.  Each agency’s listing had a field for government branch, mostly filled with Executive, some Legislative, some Judicial.  But sometimes that field contained: Independent, Quasi, or None.  How can we have parts of government that are not part of a branch of our government?

It amused me that some agency names made it easy to guess when they were created.  Delinquency was a focus in the 1930s; nuclear threats, 1950s; civil rights, 1960s; cyberterrorism, after 2001.

This just started with to know how many federal agencies we have.  But discovering there are agencies decades past their freshness date, begs to be explored. This essay is a just cursory view.

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Illegal Immigrants Would Get Up To $10.5 Billion From Reconciliation Bill

The budget reconciliation package pushed by Democrats creates a new expanded child tax credit (CTC) that would pay illegal immigrants some $10.5 billion next year. All immigrants with children are eligible, regardless of how they got here and whether their children are U.S.-born.

This includes the roughly 600,000 unaccompanied minors and persons in family units stopped at the border in FY2021 and released into the country pending a hearing.

Cash welfare to illegal immigrants is not just costly; it also encourages more illegal immigration. 

Although it is referred to as a “refundable credit,” the new CTC, like the old additional child tax credit (ACTC) it replaces, pays cash to low-income families who do not pay any federal income tax. The new program significantly increases the maximum cash payment from $1,400 per child to $3,600 for children under 6, and to $3,000 for children ages 6 to 17. After 2022, the maximum payment would be $2,000 per child, but advocates hope the much larger payments will be extended. 

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Most millionaires to get tax cuts from Biden bill, independent analysis finds

Two-thirds of people earning more than $1 million annually would receive tax cuts under President Joe Biden’s “Build Back Better” plan, a nonprofit think tank concluded.

The Tax Policy Center released its analysis of Democrats’ $1.85 trillion spending package and found that most of the wealthy will have a smaller tax bill if it is passed as it is currently outlined.

Among those making over $1 million, only 34.2% will see their taxes increase, while the rest will get tax cuts. Additionally, nearly 80% of those earning between $500,000 and $1 million will see their tax bill shrink by an average of about $6,000 per year.

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Biden’s ‘Build Back Better Act’ Gives $800M in Cash Payments to Illegal Aliens Released into U.S.

President Joe Biden’s “Build Back Better Act,” a filibuster-proof $1.75 trillion budget reconciliation package, would give $800 million worth of cash payments to hundreds of thousands of illegal aliens who were recently released into the United States interior, a new analysis states.

As Breitbart News previously reported, the Center for Immigration Studies (CIS) analyzed the cost to American taxpayers if Biden’s expanded Child Tax Credit for illegal aliens was extended for at least another year as part of the reconciliation package.

Initially, the CIS analysis found that the cost to provide the tax credits to illegal aliens with children would cost about $80 billion over the course of a decade, or about $8 billion every year.

CIS Director of Research Steven Camarota now writes that the cost to taxpayers will be even more because the roughly 500,000 to 600,000 illegal aliens released into the U.S. interior this year would be eligible to receive $800 million in cash payments as a result of the tax credits.

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