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Elections 2020: Biden won't hike taxes even if there's a blue wave, says Anthony Scaramucci

Julie Hyman
·Anchor
·2 min read

Taxes aren’t going up anytime soon — even if former Vice President Joe Biden wins the presidency, surfing on a so-called “blue wave” if Democrats sweep the U.S. House of Representative and Senate races. It’s politically unfeasible for Biden to raise taxes on corporations and wealthy individuals, the cornerstones of his tax plan, said former White House Communications Director Anthony Scaramucci.

“I predict even if there is a blue wave, they’re going to wait on the taxes. The Biden administration, because of the anemia in the economy, will not be able to move on taxes,” said Scaramucci in a Yahoo Finance Live interview.

Indeed, one of Biden’s top economic advisers said in September that controlling the coronavirus pandemic is a higher priority than tax or economic plans. Much like his old boss, President Barack Obama, Biden would be taking the reins at a time when the economy is on delicate footing — rebounding from a deep shock, but not fully recovered. Third-quarter GDP rose by a record 33.1% on an annualized basis — but the economy is still 3.5% smaller than it was at the end of 2019.

FILE - In this Aug. 20, 2020, file photo Democratic presidential candidate former Vice President Joe Biden speaks during the fourth day of the Democratic National Convention at the Chase Center in Wilmington, Del. The former senator and vice president backs an active federal government that he says should support but not constrict private enterprise, and he believes the highest federal tax burden should fall on the wealthiest. (AP Photo/Andrew Harnik, File)
FILE - In this Aug. 20, 2020, file photo Democratic presidential candidate former Vice President Joe Biden speaks during the fourth day of the Democratic National Convention at the Chase Center in Wilmington, Del. The former senator and vice president backs an active federal government that he says should support but not constrict private enterprise, and he believes the highest federal tax burden should fall on the wealthiest. (AP Photo/Andrew Harnik, File)

The Biden campaign has “very smart economic advisers like Gene Sperling and Larry Summers, and they'll make the same recommendations that they made to the Obama administration,” said Scaramucci. When Obama took office in January 2009, the United States was still in the midst of the Great Recession — not a time to raise taxes. Obama did eventually let the tax cuts enacted by President George W. Bush expire, which effectively raised taxes on Americans in the highest income bracket — those making over $450,000 a year.

On the corporate tax front, even Gary Cohn, former Trump chief economic adviser and Goldman Sachs executive, thinks rates have room to move up. The current flat corporate tax rate is 21% — a level he helped set — but the 28% rate that Biden has proposed is reasonable, Cohn has said.

Whatever the outcome on taxes, Scaramucci maintains that Trump isn’t the right choice for business, and he’s actively campaigning for Biden.

“Whether the taxes are going up or down, the overarching thing for me, is the integrity of the system,” said Scaramucci.

Julie Hyman is an anchor on Yahoo Finance Live, 9am-11am ET.

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