‘It’s Just a Bad Idea’: Kevin O’Leary Explains Why Biden Should Not Raise Taxes
The debate is intensifying over what to do about trillions in expiring tax breaks put in place under former President Donald Trump. It comes during a presidential election year — one in which the winner will face the challenge of dealing with the expiration of about $4 trillion in tax cuts, according to the Associated Press.
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Trump’s Tax Breaks Expire Soon
Several provisions from the Tax Cuts and Jobs Acts, or TCJA, from 2017 will expire after 2025 unless changes are made from Congress. According to CNBC, “Those include lower federal income tax brackets, a higher standard deduction and doubled estate and gift tax exemption, among others.”
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This debate comes amid concerns over the national debt. According to the Congressional Budget Office, extending the TCJA tax breaks would boost the budget deficit. Trump and other Republicans have been pushing for a full extension of the expiring tax breaks.
A top economic advisor to President Joe Biden, Lael Brainard, has called for higher taxes on the super wealthy and businesses to help pay for expiring middle-class tax breaks. Of course, this isn’t the first time the call has gone out to put higher taxes on the ultra-wealthy.
O’Leary: Tax Hikes Would Be a Blunder
“Imposing tax hikes right now on the U.S. economy is a mistake,” said Kevin O’Leary, the O’Leary Ventures Chairman, in an interview with Fox Business. “…[W]hen you have inflation, that is a hidden tax on the middle class obviously. And then if you tax again on top of that, you’re squeezing growth out of the economy. It’s a very simple equation.”
O’Leary, who gained popularity on “Shark Tank,” said when the government takes more money from individuals in the form of taxes, they don’t have that money to invest in businesses, their retirements or any other place.
“Sometimes ideas are just bad the old-fashioned way,” O’Leary said. “This is a bad one.”
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This article originally appeared on GOBankingRates.com: ‘It’s Just a Bad Idea’: Kevin O’Leary Explains Why Biden Should Not Raise Taxes
