Should Biden roll back the Trump/GOP tax cuts for the wealthy to fight inflation?

[RAB910]

that would be a win/win in terms of making the rich pay closer to their fair share and would help fight inflation

[spooky3]

1. He doesn't have the authority. Congress would

Have to write and pass the bill, then send it to him.

[RAB910]

4. I understand that, but Biden has the ability to get the ball rolling, so to speak

[Calista241]

13. Nothing is going to happen at this point.

It's summer time, in an election year. Manchin has very specific requirements for his vote on reconciliation, and those requirements are probably out of line with other democrats.

Can you get 50 Dems to vote to raise taxes, and devote most of that to deficit reduction and some nebulous 'climate' initiative that hasn't be defined or explained? How does that help inflation and GDP growth? They'd essentially be saying that they were walking away from paid family leave, the child tax credit, voting reform, and a whole host of other Dem initiatives.

The GDP numbers for Q2 will come out in July, and I think they're going to be pretty bad and we'll officially be in a recession. I can't decide if it's good BBB didn't pass, because it would certainly take some of / much of the blame for the recession that was going to happen anyway.

[bucolic_frolic]

2. I don't think it would do much on inflation

Those tax cuts went to investment accounts mostly. They only spend on an occasional luxury item.

Inflation is Powell's baby. Only 15% interest rates will cure it. And Powell is moving quickly to 3%. So inflation's with us for a decade.

[RAB910]

8. propose this and an increase in immigration

both will help fight inflation

[ProfessorGAC]

25. How Does It Fight Inflation?

That accumulated wealth is not part of the velocity of money.
So, it's not contributing to the variable cash flow chasing a constant volume of goods.
I support high taxes on the very wealthy, but not seeing the mechanism for that reducing inflation.

[roamer65]

24. It's definitely Powell's doing.

Increasing M1 money supply by over 50 percent was effectively a dollar devaluation.

[onenote]

3. How would he do that?

[RAB910]

5. Propose a bill for Congress to pass

[Claustrum]

6. TFG's tax cut was passed with 53 republican senators.

I am not sure Sinema or Manchin will be on-board for rolling the tax cut back (Manchin voted for the tax cut if I remember correctly).

[SKKY]

7. That's one of the things I think he should do...

...stoping the gas tax would be another solid move that could help reduce prices, even if only nominally.

[PSPS]

16. You mean 18 cents a gallon would turn things around? The infrastructure is already falling apart.

[SKKY]

23. The infrastructure bill is already allocated. This is a very short-term remedy...

...especially if other states follow suit.

[In It to Win It]

9. Convince Sinema and Manchin

That proposal lives for dies with them. They don't seem to be interested in raising taxes.

[doc03]

10. How about rolling back the Reagan tax on SS income and unemployment compensation. Make

the first $200 of interest and dividend income tax free as it was before Reagan.

[JustAnotherGen]

11. It will fail

Too many Democrats in Red States don't appreciate how much pain it has caused the middle class in the high COLA blue states.

Better to run on it in the midterms. That, and the fact that a bunch of traitors want to eliminate Social Security and Medicare.

[MissMillie]

12. Well, those tax cuts need to be rolled back regardless of inflation (n/t)

.

[MichMan]

14. All of them?

The increase in the standard deduction was very significant for taxpayers not itemizing. Rolling back that to 2017 levels would raise taxes significantly for millions of taxpayers.

[mopinko]

19. i dont think that counts as 'tax breaks for the rich'.

[MichMan]

21. I've just many posters wanting to roll back all of the Trump tax cuts.

That was one of them.

[mopinko]

22. op specifically uses the word 'wealthy'

[ProfessorGAC]

26. You're Cherry Picking

The OP specifically states "on the wealrhy".
Your example is not applicable to the OP.

[PSPS]

15. Even if he could, it would just fuel inflation.

If people have more money to spend, there will be no downward pressure on prices.

[RAB910]

17. I am pretty sure that's not how the economy works

the government taking some of the wealth from the wealthy will reduce demand which reduces prices

[PSPS]

18. Consumers in the luxury goods market are unaffected by inflation

When you're a billionaire, everything is essentially free.

[ProfessorGAC]

27. Nope

The very wealthy are spending a very small fraction of their total income & asset growth.
Higher taxes would not reduce their consumption in the least.
Sombody with a declared income of (example only) $50 million, living off $2 million per month, pays $14 million in taxes. This leaves them with $12 million of uncirculated cash.
Raise the taxes to the pre-cut days and they'd pay $14.5 million in taxes.
This effects their consumption in no way.
Besides, government spending still ends up as cash into the system.
So, where's the lower volume of cash chasing after the fixed supply?

[GoodRaisin]

20. Taxing windfall profits would help deal with the greed element of inflation.

For example the gas and oil industry is reporting record profits. Tax the “record” portion of those profits and return it to taxpayers in payments, tax credits, etc.

It’s already being done in the U.K.