Sen. Mike Crapo says President Joe Biden broke his 2020 campaign pledge not to raise taxes on people earning less than $400,000 a year. The bill is a catchall package that includes clean-energy incentives, health-care policies and new corporate taxes. The White House is up for a vote in the House this week on the massive bill, which is widely expected to be voted in the Senate this week. We have long found that complex tax and budget issues are ripe for spin that confuses ordinary readers, but it was smart politics for the GOP to try to get a handle on the issue, we say. In any case, for many Americans, even the estimated impact of these ‘tax increases” is rather small, but these tables give Republicans a hook.
Crapo said it was a “technical argument” as to whether Biden’s pledge involved just tax rates. Biden campaign officials said the test was how any tax plan signed into law by Biden would affect individuals when they had to calculate their taxes. Various think tanks are still crunching the numbers on the final version of the bill that emerged from the Senate over the weekend. There is no easy way to adjudicate this debate, but few economists would dispute that higher corporate taxes work their way into the economy and eventually may affect hiring and investment. The bill would impose a corporate minimum tax on companies with $1 billion or more in profits — which are more likely to have supernormal returns, which might mean the tax would be less likely to affect investment or hiring.