Three months later than usual and falling in the dead heat of summer, Tax Day is finally here. In the midst of a global pandemic and the shutdown of our booming economy, the last thing Americans needed to worry about was the April 15th deadline for filing their tax returns. SHOULD YOU FILE FOR A TAX EXTENSION? THESE ARE THE PROS AND CONS So, under President Trump’s direction, the Department of Treasury delayed Tax Day from April 15th to July 15th giving families and small business owners more time to pay their federal taxes without interest or penalties. Every politician understands the importance of tax revenue. Not every politician understands the impact taxes have on economic growth or the importance of the Laffer curve, whereby lower tax rates can boost economic growth resulting in more jobs, higher wages and, ironically, increased tax revenue. As we file our tax returns, it’s good to keep in mind that we are all paying less to the federal government because President Trump understands both how to grow our economy and maximize the tax revenue required for government to function -- without overburdening either American families or small businesses. It’s also a good time to keep in mind that there may be no starker contrast between Democratic presumptive nominee Joe Biden and President Trump than on tax policy. MILLIONS OF TAXPAYERS AWAITING REFUNDS FROM IRS COULD FACE 'EXTREME DELAYS' To put it plainly—President Trump wants to cut taxes – for everyone. Joe Biden wants to raise them – a lot. For President Trump, tax cuts are more than an election-year promise. In December 2017, he signed the Tax Cuts and Jobs Act (TCJA), cutting taxes for every tax-paying American. It was the largest tax cut in US history. Millions of Americans saw increased wages, bonuses, and benefits for their families because of this historic tax reform. According to the White House Council of Economic Advisors, “[a]ltogether, real disposable personal income per household has risen by about $6,000 since TCJA was signed into law.” For working and middle-class families, that’s more than “crumbs” no matter what elites like Nancy Pelosi think. LAST-MINUTE TAX FILERS COULD RECEIVE SURPRISE IRS BONUS The TCJA's doubling of the child tax credit alone has benefitted nearly 40 million American families with an average of over $2,200 in 2019. This type of economic empowerment allows families of all backgrounds to get ahead and give their children a chance at better life—the bedrock of the American Dream. Biden wants to strip that great promise away. In fact, he has pledged that the “first thing” on his agenda if elected president would be to “eliminate the President’s tax cut.” Biden wants the United States to return to the big-government economic policies of the Obama-Biden administration. Yes, the same failed policies that were responsible for years of economic stagnation and the slowest economic recovery since the Great Depression. Just as the economy is taking off again once again, Biden wants to stifle it with a staggering $4 trillion tax hike. In a Biden administration, 82 percent of Americans would see their taxes go up, according to his proposed tax plan. The Tax Foundation, an independent tax policy nonprofit, found that Biden’s tax plan would shrink the American economy by 1.5 percent and eliminate 585,000 jobs. CLICK HERE TO GET FOX BUSINESS ON THE GO During an economic speech in Pennsylvania last week, Biden also reemphasized his pledge to raise the corporate tax rate, once again demonstrating his ignorance on economics. “I’m gonna raise it back up to 28 percent”, Biden said. So, even as our economy is recovering from the pandemic, Biden wants to increase the U.S. corporate tax rate 43 percent from its current rate of 21 percent. Even President Obama once famously said, “You don’t raise taxes in a recession.” If Biden gets his way, the United States will have a higher corporate tax rate than Communist China’s 25 percent, just as we are beginning to regain our competitive position with respect to our major competitor. What Biden and Democrats fail to comprehend is that an increase in the corporate tax rate would devastate American competitiveness at home and abroad, decreasing economic growth and killing jobs. The surest way to guarantee that American jobs are shipped overseas and American manufacturing is completely hollowed out would be to elect Biden this November. Biden’s tax policy is indicative of his vision for America—a return to slow economic growth, stagnant wages, and job-killing big government regulations – fewer jobs, lower wages and bigger checks written to the IRS on every tax day. It’s something to think about as we file our returns today, and to remember come November. Andy Puzder was chief executive officer of CKE Restaurants for more than 16 years, following a career as an attorney. He is currently a Senior Fellow at the Pepperdine University School of Public Policy. He was nominated by President Trump to serve as U.S. labor secretary. In 2018, Puzder authored "The Capitalist Comeback: The Trump Boom and the Left's Plot to Stop It" (Center Street).  His latest piece, a Broadside by Encounter Books titled, “Getting America Back to Work” was released on April 28, 2020. CLICK HERE TO READ MORE ON FOX BUSINESS
