Fresh off the heels of his $1.9 trillion COVID-19 relief bill, U.S. President Joe Biden is already proposing a major tax overhaul that will potentially raise corporate taxes from 21% to 28% and increase taxes for all individuals earning more than $200,000 annually. While this plan will certainly impact the wealthy, they also could have major implications for people in all tax brackets and the U.S. economy as a whole.
To learn more about the potential impacts of President Biden’s new tax plan, America’s Voice Live (AVL) recently turned to Terry Sawchuk, the founder and chairman of Sawchuk Wealth, for insights.
Despite the plan not being as bad as experts initially expected, Sawchuk views Biden’s tax plan as merely a “gateway drug.” He explains that since the administration was forced to focus on COVID-19 and passing economic stimulus bills, the focus on major tax legislation was required to move to next year. Fortunately, since 2022 is an election year, there is a chance to skirt some of the larger tax plan issues.
“I think we are facing two things: a political party that really wants higher taxes and wants bigger government. But we are also facing a looming debt crisis and I think that is a snowball rolling downhill that might be unstoppable at this point,” Sawchuk tells AVL’s Steve Gruber.
Additionally, if more regressive tax proposals, such as Elizabeth Warren’s wealth tax and the corporate interest tax, comes to fruition under Biden, the repercussions have the potential to become even more widespread and severe.
“They are going to chase the wealth out of this country,” explains Sawchuk. “They are going to chase out innovation…I am talking about people getting jobs, expanding the wealth base and making more millionaires. These are things that have happened over the last four years – they are going to undo everything if it goes through.”
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.