Americans' life savings will be damaged by President Joe Biden's planned corporate income tax increases, Americans for Tax Reform founder Grover Norquist warned on Tuesday.
"Fifty-three percent of American families have a 401(K) or IRA," Norquist said on Fox Business' "Mornings With Maria." "All of their life savings is going to be damaged by Biden's tax increases on the corporate income tax. He wants to take it up higher than China's corporate income tax. He wants to double the tax on capital gains, bring it back to about 44%, which is where it was close to where it was when Jimmy Carter was president and the economy was collapsing."
People familiar with the discussions say the White House is planning several tax increases, with the ones involved in a broad infrastructure and jobs package likely to repeal parts of former President Donald Trump's 2017 tax law. Proposals reportedly under consideration include raising the corporate tax rate to 28% from 21%; pulling back tax preference for pass-through businesses like limited-liability companies or partnerships; raising the income tax rate for people earning more than $400,000; expansions of the estate tax; and a higher capital gains tax rate for people who earn at least $1 million a year.
According to an independent analysis by the Tax Policy Center, the tax hikes could raise as much as $2.1 trillion over a decade.
"He's doing so much damage to people's life savings and setting up a cartel," Norquist said. "If businesses got together and said, 'We'll have minimum prices,' the anti-trust would be brought in. The governments are getting together. We won't compete to have lower taxes, how about that. That's really very bad news for the United States."
And those who think the higher taxes won't affect them because Biden promised not to raise rates on people earning less than $400,000 a year may soon find that hikes in the corporate tax rate would be passed on to consumers, Norquist said.
He pointed out that in California, 1% of the population pays 50% of the income taxes, and it won't "take too many people" to leave states like California or New York, which is also considering tax hikes, before governments start to collapse because of the loss of financing.
"It's interesting that [California is] making this decision," said Norquist. "In Florida, Texas, and Tennessee, there is no income tax at all and better weather. It's an odd decision that New York and California are making. And again, Biden is throwing all this money from other states into financing the blue states and they're still raising taxes."
Meanwhile, Norquist predicted the myriad scandals facing New York Gov. Andrew Cuomo — where people on both sides of the aisle are calling for him to either resign or be impeached over accusations of sexual harassment and a nursing home mandate that may be responsible for the deaths of thousands of seniors — will prompt him to undertake even more liberal policies.
"This is going to drive him further to the left," said Norquist. "[Cuomo is] moving so far to the left that he thinks people will shut up about his problems."
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