Biden is on a path to impose the biggest tax increase in history, without Congressional approval. We are talking about the hidden tax coming from regulatory costs. As Casey Mulligan has shown in a recent report, the Biden administration’s first two years of rulemaking created more than $1 trillion in regulatory costs or about $10,000 per household. That’s a “tax” we all pay yearly (unless we get a new president who reverses these regs).
This “tax increase” on workers is the equivalent of a 0.5 percentage point hike in both employer and employee FICA payroll tax rates.
Of course, Biden continues to regulate in 2023 and will continue to do so until he leaves office. We estimate that eight years of Biden would translate to $60,000 of regulatory costs per household, which is like permanently increasing both FICA rates by 3 percentage points.