3 Reasons Not to Fear the Biden Tax Hikes

A lot of people are getting all worked up over President Biden's plan to raise taxes. Here are some reasons to chill.

picture of road sign saying "Do Not Panic"
(Image credit: Getty Images)

President Biden's American Families Plan offers a long list of "social infrastructure" programs that will benefit a lot of people. Just as a sampling, the plan would provide free preschool and community college, more Pell Grants, scholarships for future teachers, caps on childcare expenses, training and pay for childcare workers, guaranteed family and medical leave, enhanced unemployment benefits, and tax breaks for lower- and middle-income families. But the president's plan will also cost a lot of money. And to pay for the $1.8 trillion package, Biden wants to raise taxes on upper-income Americans.

As one would expect, the president's tax and spending plan is setting off alarm bells for some people. In addition to anxiety over their own personal finances, many Americans are worried about the impact on the U.S. economy as a whole. Run-away inflation, followed by higher interest rates and slow growth are the chief concerns. This makes a lot of people nervous.

But if you're looking for ways to bring your anxiety level down, here are three reasons why you shouldn't fear Biden's proposed tax increases. Plus, it will take some time for the president's plan to work its way through Congress, and it may be best to just kick back and relax while we wait. After all, you probably don't need the extra stress in their life right now anyway!

Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.