Economist warns Americans over Biden’s potential tax hikes: 'Scary'
Heritage Foundation economist and former Trump economic adviser Steve Moore assesses Biden's potential tax rates if he wins re-election.
A Trump economist is sounding the alarm on Biden’s potential tax rates if the president is re-elected in November.
During an appearance on "Mornings with Maria" Thursday, Heritage Foundation economist Steve Moore called the tax rates under Biden "scary" as his trillion-dollar budget for 2025 includes $5.5 trillion in new taxes.
"I mean, look at the capital gains tax rate. That would almost double under Biden," Moore warned.
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As part of the budget proposal, Biden called for a 25% minimum tax rate on households worth more than $100 million, raising the capital-gains tax rate, quadrupling the corporate stock buyback tax to 4%, raising the corporate tax rate to 28%, increasing the Medicare tax paid by wealthy Americans, implementing a global minimum tax on multinational corporations and closing the carried interest loophole used by private equity and hedge fund managers.
"I have to give Biden credit, he's actually telling people he wants to raise taxes through the roof," Moore told FOX Business’ Maria Bartiromo.
But Moore’s criticism of the president’s tax proposals doesn’t stop there, as Biden continues to push for taxes on unrealized gains.
"Here’s another example. Let’s say you bought a farm for half a million dollars and 20 years later it’s worth $4 million. You have a $3.5 million gain. You’d literally have to sell your farm to fit the taxes. That’s how crazy this is," the economist stressed.
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As Biden’s tax proposals raise alarms among economists, Americans are still grappling with the current state of the economy.
"The fact is, it is true that the inflation rate has come down… That's good news. But the fact is, the prices are still 20% higher and the essentials are up about 25% when people's incomes are not rising nearly as well," Moore explained.
He went on to stress that "people in Washington, D.C. live in a bubble."
"They don’t understand what’s going on at Main Street America. And I see that kind of attitude among people in the Washington Beltway. ‘Oh, everything’s just fine with the economy.’ Have these people been to the grocery store? Have they paid for gasoline or a rent payment?"
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FOX Business’ Megan Henney contributed to this report