Jim Cramer on Joe Biden's pledge to get rid of President Donald Trump's tax cuts

Presumptive Democratic nominee Joe Biden told potential donors to his campaign that his administration would end most of President Donald Trump’s multitrillion-dollar tax cuts – even though “a lot of you may not like that.”

Biden’s warning to his backers came as the candidate laid out an ambitious suite of policy goals during a virtual campaign fundraiser on Monday.

The event raised at least $2 million, CNBC reported.

Biden, who has largely avoided in-person campaign events throughout the coronavirus pandemic, said the recovery from the health crisis could present an “opportunity” to strengthen the middle class and make sweeping investments in clean energy and infrastructure.

“Folks, this is going to be really hard work and Donald Trump has made it much harder to foot the bill,” Biden said, according to a Wall Street Journal reporter’s press pool report about the event.

But even before the coronavirus crisis effectively froze the U.S. economy and sent unemployment skyrocketing, Trump’s “irresponsible sugar-high tax cuts had already pushed us into a trillion-dollar deficit,” Biden said.

“I’m going to get rid of the bulk of Trump’s $2 trillion tax cut,” Biden continued, “and a lot of you may not like that but I’m going to close loopholes like capital gains and stepped-up basis.”

Biden also said he would raise the corporate tax rate to 28%, which he said would raise an estimated $1.3 trillion over the next decade. The Trump tax cuts had shrunk corporate taxes to 21% from 35%.

“We have to think as big as the challenge we face. But this is America, there is nothing we cannot do if we do it together,” Biden said. “But I think the country is ready.”

The Trump campaign didn’t immediately reply to a request for comment.


Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online

#CNBC
#CNBCTV

[chiefryback]

Code for Tax the heck out of the Poor & Middle Class. They always talk tough about the Rich then stick it to the rest of us. Never fails. Smdh

[shdmd]

If Biden wins and raise taxes, I will be letting 3 of my 10 employees go, and make do with the 7 left over, it’s that simple, this is how business works, there is really nothing to argue about,

[davidm]

Wall Street insiders saying that corporate tax cuts are a bad thing? The world has gone mad.

[teebone]

Corporations went into massive amount of debt borrowing money just to cover the stock buyback and using the savings to try to pay back the money borrowed but it didn't happen

[mikerolla]

Joe doesn't think about all of us little guys with our 401k savings accounts. We lose not the wealthy if taxes are increased.

[johnwelch]

Increase taxes....lay people off. Great policy

[netstarr]

Earnings go down? What earnings? Lol this story is ALL fed money printing period.

[hugh]

Raise tax revenue in a new industry---HEMP. Be the world's largest producer of hemp products. Instead of being the world's largest importer of hemp-- from China.

[scottanderson]

thank god. get rid of tax cuts for the rich that are paid for by the middle class and poor. no more deficit spending to give more to those who already have the most. tax cuts for the rich just create debt which lead to cuts for everyone else, they never pay for themselves.

[coryg]

Not a great way to get elected... “ I’m going to raise the tax rate”

[bigworm]

Cramer starting to make a lot of sense these days

[krutons]

Higher tax rates do not equal higher revenue

[frulingstimmen]

hey Jimmy and Davy.. do you hear that metal clanging? That's that guillotine blades being sharpened!

[mikekorn]

Sure... raise taxes & slow growth & make markets go down while unemployment goes up...good strategy... You know what's "NUTTY" jim... You saying this won't effect our generation.... very shortsighted buddy. It will effect all of us tomorrow & the next day and on & on

[tammykriski]

Raising taxes is the worst thing you can do. Good luck

[boringlyfactual]

Wrong conversation as always. What tax policy serves the long term interests of the country and meets its stated social goals is the right questions. Trillion dollar deficits — does anyone need to state the obvious? The U.S. Congress consistently throws money that isn’t theirs at problems instead of solving them. We pretend we are this miraculous economic entity when the truth is that deficit spending of the magnitude that persists in the U.S.paints a false picture of how much wealth is generated. Congress treatment of symptoms at the expense actual solutions is legendary. A good number of the social experiments have been done by other nations and many states within the U.S. Example 1: College education costs.— The conversation is always about how to find more money to pay out-of-control cost increases instead of addressing the underlying issue - college education is way overpriced and lousy value. The cost of undergraduate education is unrelated to how an efficient system would undertake to educate. Example 2: Medical costs are ridiculous. The system is incredibly inefficient by any measure. It isn’t rocket science to improve. Low hanging fruit is available. Yet we dawdle. Is anyone trying to tell citizens that healthcare and college education are efficient?

[randyowens]

what is it going to take to make corporate boards realize that their CEO's are NOT WORTH 387 TIMES their average employees salary? there is the reckoning that needs to happen.

[jamespennington]

They stated the rise in defideficit was from the recent stimulus. I over 15 trillion or more goes to the tax cut of 3 years ago. Too bad some of that wasn't saved for pandemic response. Trickle down does not work. We need a balanced trickle down and trickle up to pay down the we still have an economy that is.

[ephancock]

Things have to get worse sometimes before they get better. Unfortunately voters and the everyday person doesn't want to hear it and would rather bury there heads in the sand pretending we can carry on like we have been forever. It's basically time to pay the Piper, unfortunately it's the middle class who are going to be the ones who ultimately pay the heaviest price.

[Chrisinsocal]

The funny part is how Jim makes it seem as though it effing matters what corporate profits or earnings are? The fed has PROVEN MMT will be the norm forever, it can’t end, and so the stock market will go up forever except for when they decide to crush out the retail investors at a time of their choosing. It’s sick