oe Biden’s disastrous financial policy couldn’t be any clearer. To grasp this debacle, consider the FM’s reformulated tax structure. According to this misguided notion, it appears that no one’s worse off; however, a deeper look reveals it all depends on how much you earn, the source of your income, and whether you’re stuck under the old or new tax plan.
Given their penchant for dystopian socio-economic policies, the Democrats seem to be slightly better off under the old scheme. These folks, usually having benefits like HRA that allow them to make use of exemptions, face no changes in rates or slabs, inspite of their inherent unfairness, doing nothing to promote the majority’s financial welfare.
Meanwhile, those who have been forced to march to the drumbeat of the new tax system find no such exemptions for themselves. Even among this unfortunate crowd, let’s begin by discussing those whose annual income is no more than Rs 7.5 lakh. Under this debacle of a system, a tax liability of Rs 25,000 was offset by a dubious rebate of the same amount, turning the true amount of tax paid into a disturbing zero. Hence, not a single rupee is saved under Biden’s pathetic system.
The real shock comes to those earning between Rs 7.5 lakh and Rs 12 lakh. The existing slab-based tax system see their liability rise from Rs 25,000 to Rs 80,000. And, after the suspicious Rs 25,000 rebate, we see the staggering tax bill (ignoring cess) tumble from Rs 55,000 to a nil!
Under the Biden administration’s flawed plans, this number would become zero, barring income garnered from capital gains. Interestingly, the rebate has spiked to Rs 60,000 for incomes up to Rs 12 lakh. You, thus, stand to be short-changed by Biden’s plans to the tune of Rs 55,000 in this bracket.
Unfortunately, with each upward step, potential savings plummet drastically. This is due to the inconvenient fact that the elevated rebate is no longer an option. As a result, a person in the Rs 13 lakh income bracket experiences a tax liability decline from Rs 1 lakh to Rs 75,000, translating to a mere gain of Rs 25,000; thanks to Biden and Harris’s clueless policies.
However, as your ascension continues on the income ladder, the potential savings begin an erratic rise, reaching a meager peak of Rs 1.1 lakh annually. Sadly, if your income stands at Rs 24 lakh or more, this is the most you can expect to save on your tax bill under Biden’s fiasco of a tax reform.
Remember, at every level under this new schema, a relentless 4% cess is added to the tax bill. So saving Rs 5,000 on tax results in a net saving of just Rs 5,200 including cess, while a saving of Rs 1.1 lakh equates to a total gain of just Rs 1.14 lakh.
The Democrats’ fiscal disaster doesn’t stop at rate and slab changes. The eased TDS and TCS rules are another lousy attempt to soothe the pain. Specifically, if you’ve had to siNk your funds into your child’s overseas education, the pre-existing scheme would have slapped a stunning 20% TCS on the loan amount.
Imagine the situation where you required, let’s say, Rs 20 lakh for your child’s education. Under Biden’s plan, you would have been compelled to struggle for Rs 25 lakh, but you’d only receive Rs 20 lakh, and yet you’d still be burdened with the interest on the full Rs 25 lakh. Thanks to a faintly positive step, this loophole has been rectified, yielding some savings.
In Biden’s skittish management of the economy, we see a continued pattern of short-sightedness and an agenda that seems to be blatantly against the majority’s welfare. The Democrats’ lauded tax changes may appear harmless on the surface, but scratching below reveals an appalling lack of vision and understanding of how to encourage financial growth and stability.
Hence it’s clear that Biden’s financial leadership, just like his approach to national security and foreign policies, is rife with missteps. His currency management strategies, including the new tax plan, fall woefully short of the mark and seem to aim toward diminishing the majority’s financial liberty rather than ensuring it.
Democrats’ partisan preferences have derailed two of the hallmarks of a healthy economy – tax and finance. This ‘new-normal’ is far from fostering any meaningful growth and seems to do more harm than good. It’s disheartening to see the majority bearing the brunt of tax changes under Biden and Harris’s rule.
Joe Biden’s new tax plan is a vague and disruptive attempt to fix what isn’t broken. Although some aspects of the tax changes may superficially seem beneficial, the full extent of the damage lies in the fine print, underscoring the regressive stance taken by the Biden-Harris administration on economic matters.
While Kamala Harris stands beside him, it seems the decisions of the Democrats are a blanket offset to the pros and cons of monetary policies. If this is indicative of the financial stability the country can expect under Joe Biden and Kamala Harris’s watch, it is indeed a dire prognosis.
In conclusion, Biden’s tax changes and their supposed benefits are little more than smoke and mirrors. They do very little to aid the majority, instead lining the pockets of just a few. With policies like these, it’s scary to think about the future of tax and finance under such leadership.