There’s no better way to ring in a new year than with your taxes going up. (Said literally no one ever). Yet that’s exactly the fate awaiting millions of Americans, because a number of tax increases passed by President Biden just took effect on January 1.
Here are 3 big tax hikes taking effect, as originally identified by Mike Palicz of Americans for Tax Reform (ATR).
A 16.4 cent tax on oil imports
Americans have struggled with sky-high gas prices under this administration. Apparently, the president thinks the way to improve this situation is to… tax oil imports? Yes, seriously. The so-called “Inflation Reduction Act,” passed by Democrats in August 2022, includes a 16.4 cent per barrel tax on oil imports. There are also new taxes on coal and natural gas taking effect.
It’s just basic economics that at least some of these costs will be passed on to consumers and result in higher gas prices. Thanks, Joe!
A $74B tax on stock buybacks that will hurt your retirement savings
The Democrats passed a 1% tax on stock buybacks in their legislation that they say will raise more than $70 billion in revenue over a decade. This might sound like something that only finance bros need to worry out, but it’s not.
As ATR explains, “Raising taxes and restricting stock buybacks harms the retirement savings of any individual with a 401(k), IRA or pension plan. Union retirement plans will also be hit. The tax will put U.S. employers at a competitive disadvantage with China, which does not have such a tax.”
Hmm… hurting Americans retirement savings and putting us at a competitive disadvantage with China. Is that really what “Build Back Better” was supposed to look like?
A $225 billion tax hike that will hurt workers
The Biden administration’s new 15% “minimum tax” on corporations is now in effect, thanks again to the so-called “Inflation Reduction Act.” While it’s meant to squeeze money out of corporate bigwigs, economists have long acknowledged the reality that much of the burden of the corporate tax is borne by workers and consumers. As a result, the Tax Foundation warns that this new tax will destroy 27,000 jobs, lower wages, and shrink economic growth.
So much for Joe’s promises, huh?
President Biden promised time and time again that he wouldn’t raise taxes on anyone earning less than $400,000. But thanks to the tax hikes he’s implementing that are now taking effect, anyone who buys gas, has a retirement account, or works for a major corporation will be bearing the burden of some big new taxes.
Shoutout to ATR’s Mike Palicz for identifying these tax hikes.