Norquist: Biden's Tax Takes Corporate Rate Higher Than China President-elect Joe Biden and Chinese President Xi Jinping (Lintao Zhang/AP)
By Sandy Fitzgerald | Monday, 11 January 2021 04:04 PM
Money will be taken out of the economy and spent on the list of tax increases that President-elect Joe Biden and the Democrats around him have put forward, Americans for Tax Reform founder and president Grover Norquist said Monday.
"You're talking about taking the corporate rate up higher than China's," Norquist told CNBC's "Squawk Box." "One of the disadvantages we had before the Republican tax cut was that you paid higher taxes, 35% for corporate earnings in the United States, 25% in China or Germany. All other countries were lower than we were."
But Biden's plans are to take taxes up to higher rates than China's, Norquist said.
"Biden's plans are to take it up to sometimes he says 28%; during the campaign, he repeatedly said 35%," Norquist said. "Both of those are higher than China's, and for most of the rest of the world."
Biden also wants to limit how much money people can put in their 401K plans, and "100 million Americans will see their 401Ks damaged because corporate income tax is higher," Norquist added.
"There will be less value in companies that are taxed highly and 401K will shrink," he said. "He wants to limit how much you can put in the 401K . . . he wants to bring back targeting the poor, low-income people. He wants to bring back the Obamacare individual mandate tax – 5 million Americans were hit with that."
Biden has also said he wants a payroll tax of 12.4% of earnings over $400,000 a year that is not indexed to income, Norquist said.
"If you're earning $250,000 a year, you will be paying an additional 12.4% marginal tax rates on your earnings," Norquist said. "In addition to taking the top rate up to almost 40% and on capital gains, he wants to take that also up to almost 40%, the highest since Jimmy Carter in 1977."