In the midst of a global pandemic and subsequent economic downturn, Democrats are proposing to raise taxes in 2023. This comes at a time when inflation is at its highest levels since 1981, and the stock-bond-equity losses have been greater than any other year since 1871.
Though the Democratic Party claims that these measures will help fund Biden’s government programs such as healthcare reform, conservative economists and analysts believe that this could be detrimental to American businesses and taxpayers alike.
Businesses are set to bear the brunt of increased taxes proposed by Democrats. With higher taxes comes less ability for businesses to invest capital back into their operations or workforce – reducing their capacity to grow or stay competitive in an already struggling economy.
In addition, higher taxes mean less money being put back into our communities through job creation or retention – leading to even more unemployment across the nation. What’s more, many businesses rely on credit from financial institutions for daily operations but with interest rates hovering around zero percent, it has become increasingly difficult for them to access funds needed for investments or expansions without being hit with excessive fees or unreasonable terms.
Taxpayers also feel the burden of increased taxes as they must pay more money out of pocket to support government programs they may not even benefit from directly.
This reduces individuals’ disposable income which can be used towards everyday expenses like rent or groceries – meaning an increase in poverty rates nationwide if not properly addressed soon enough.
Even worse, those who do manage to hang onto jobs during this period will see smaller paychecks due to increased tax deductions – making it difficult for them too make ends meet while trying just to stay afloat financially speaking during these already uncertain times.
One thing is certain – increasing taxes right now could not only hurt individuals but also entire communities whose economic growth has already been stunted by Covid related shutdowns across much of the country. We need innovative solutions that don’t rely solely on taxation if we want America’s fiscal health restored post-pandemic.