(NewsReady.com) – In 2017, President Donald Trump signed his landmark tax bill. The legislation lowered taxes for millions of Americans. Joe Biden has said he’s going to get rid of that law if he wins the 2020 presidential election, and his alternatives would be destructive.
According to the Biden Campaign, he’ll raise taxes on corporate America and people who earn over $400,000 annually. On October 6, the Tax Foundation tweeted that its General Equilibrium Model predicted the former vice president’s tax increase will reduce the GDP by 1.47%.
According to the Tax Foundation’s General Equilibrium Model, Biden's tax plan would reduce GDP by 1.47 percent over the long term.
It would also reduce the overall wage rate by a little over 1 percent. pic.twitter.com/UOEykhxou0
— Tax Foundation (@TaxFoundation) October 7, 2020
The GDP is the total cost of goods and services the country makes. When it drops, unemployment goes up and investors don’t invest in the economy.
The US economy is currently struggling to recover from the COVID-19 pandemic. Raising taxes during an economic downturn is a recipe for disaster. President Trump, on the other hand, wants to continue lowering taxes to help propel the country forward.
~Daily News for Busy People!
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