Tax guru explains what a Janet Yellen Treasury Department means for taxpayers
Democrat Janet Yellen, Joe Biden’s pick for U.S. Treasury Secretary, is bad news for the U.S. economy that thrived under President Donald Trump. That is the assessment of Grover Norquist, the president of Americans for Tax Reform, who insists that “The liberal Yellen will gladly carry out Biden’s tax hike plans.”
Yellen chaired the Federal Reserve under Obama and also worked for Bill Clinton as chair of the White House Council of Economic advisors in the late 1990s. Yellen’s nomination is another indication that Biden, if he comes president, will load up his cabinet and administration generally with Obama retreads.
In an Op-Ed on the Fox News website, Norquist warned U.S. taxpayers that, among other things, Yellen is a foe of the economy-boosting Trump personal and corporate tax cuts which Biden wants to repeal, and that she generally otherwise follows the liberal tax-and-spend playbook.
“To start, [the Yellen nomination] means your personal income taxes will increase, your 401k will drop in value as the Biden administration and Yellen increase the corporate tax on the corporate stocks in your 401k, and your cost of gasoline and energy will increase,” Norquist wrote.
“Such a repeal would impose a $2,000 annual tax hike on a median-income family of four and a $1,300 tax hike on a median income single parent with one child. Repeal of the tax cuts also means the individual mandate tax will come back into force, hitting five million households with a $695 – $2,085 tax. 75% of these households make less than $50,000 per year.”
— Conservative News (@BIZPACReview) November 24, 2020
Capital gains tax increases, that affect ordinary Americas with a 401(k) or who invest in the stock market, for example, are also on the horizon, he maintained.
“The liberal Yellen will gladly carry out Biden’s tax hike plans. Biden wants to double the top capital gains rate to 40%, the highest since Jimmy Carter in 1977. He wants everyone — ‘every single solitary person’ — to pay capital gains taxes at ordinary income tax rates”
Corporate income take hikes could also be on the horizon.
“Trump permanently lowered the U.S. corporate income tax to 21% which finally made America competitive with other nations on tax policy. Yellen will be tasked with helping Biden raise the corporate tax rate to 28%, even higher than Communist China’s 25%.”
Yellen is a champion of a carbon tax, which has substantially raised energy costs for consumers in any country that it has been tried. “She has endorsed an energy/carbon tax of $40 a ton which translates into a 40-cent increase in the cost of a gallon of gasoline when you fill your tank. This energy/carbon tax will also increase the cost of your home heating oil, natural gas, and the cost of all products shipped to stores or your home by truck, plane, or rail…Even former Secretary of State Hillary Clinton refused to endorse such a tax when she ran for president in 2016 because her studies showed a carbon tax would devastate low and middle-income households.”
Biden and Yellen apparently favor a taxpayer bailout of grossly mismanaged Democrat-controlled cities masquerading as a COVID-relief legislation.
“Promising to nominate Yellen to lead the Treasury Department, an advocate of higher income taxes and new taxes on energy/gas demonstrates that Biden will follow through on his threat to raise taxes at least $4 trillion and did not mean a word of his promise to never raise a penny of any tax on taxes on anyone who earns less than $400,000. Let’s be honest, most people filling up their tanks with gas make somewhat less than $400,000,” Norquist concluded.
This doom-and-gloom scenario might be averted if both incumbent GOP senators win the Georgia runoff elections in January, which will require them to overcome the lack of ballot security in that state.