Biden Proposes the Highest Tax Rise Since Ljb, According to an Op-ed!
There are two types of people that grumble about taxes: men and women “Will Rogers –
Every Democrat running for office in the United States repeats the same campaign theme: “I plan to tax the wealthy and redistribute wealth.” They shout that the wealthy do not “pay their fair share of taxes,” and that it is past time for them to do so.
“It is time to reduce income inequality,” they urge. “Those who have profited the most should support those who have benefited the least,” they preach.
When it comes to hiking taxes, who do lefties consider wealthy? According to the Tax Policy Center, around 10% of American households earn more than $200,000.
They pay 69 percent of all federal taxes, with the highest fifth paying the most. Why does the left consistently demand that “the rich” pay more when they already pay more than their fair share? “It is past time for us to penalize the rich,” says the classic liberal dictum.
Joe Biden ran for president on a platform of “taxing the rich,” and narrowly defeated populist Donald Trump. But, while campaigning for his “Build Back Better” pipedream, he toned down the rhetoric for a few months.
But, in a classic progressive fashion, he informed taxpayers of the terrible news last week. It was “Christmas in Spring” for Republicans when Congress unveiled Biden’s 2023 wish list.
Biden’s fiscal proposal for 2023 reintroduces all of the awful ideas that Congress has rejected, along with a novel twist: “the desired liberal wealth tax.” Biden is clearly shifting to the left in order to energize disgruntled progressives ahead of the November elections. This provides them with more ammunition to attack the GOP.
“All we’re trying to do is level the playing field by ensuring that the wealthy pay their fair amount.” Joe Biden, Vice President of the United States
Biden’s wish list includes raising the top marginal income tax rate from 37 percent to 39.6%. It would also nearly treble capital gains taxes to 39.6% for those earning more than $1 million. This would be the highest investment-gains tax rate since the 1920s. The rate has never been higher than 33.8 percent.
This is referred to as a “billionaire tax” by the left, which is a common progressive narrative. However, millionaires are not the only ones who have been punished. It pertains to income as well as “increasing annual asset value.”
This tax applies to “unrealized capital gains,” which are not taxed until assets are turned into income. To put it another way, Elizabeth Warren and Bernie Sanders will finally receive the wealth tax they’ve been clamoring for.
This tax structure will significantly complicate the tax law while also causing significant investment distortions. Investors will be enticed to hold liquid assets, such as real estate, rather than liquidate stock to pay taxes because liquid assets account for less than 20% of their value.
Investors will be obliged to sell equities to pay taxes on unrealized capital gains rather than diversify or reinvest.
In plain terms, this means that hundreds of successful entrepreneurs and small business owners will be penalized for their success, which they have achieved over decades via the invention and hard work. Any tax proposed by the left “applies to a few” and quickly spreads to millions.
“For a mathematician, the IRS tax code is too complicated. It necessitates the presence of a philosopher.” — Einstein, Albert
The news of Biden’s proposed tax hike spread like an EF5 tornado through investing circles. The S& P 500 index plummeted 1% right away, the biggest drop on Wall Street this year.
Thomas Hayes, a fund manager, screamed, “The market would have plunged 2,000 points if we felt this had a possibility of passing.
There’s another thorn in Biden’s tax plan: it’s unconstitutional! According to the Constitution, Congress can only levy “direct taxes.” Unrealized capital gains are not income, despite the fact that the 16th Amendment established an income tax. To put it another way, Biden is taxing “expected income?”
Individuals with income of $200,000 or more ($250,000 married filing jointly) might face a federal capital gains tax rate of 43.4 percent, including the 3.8 percent net investment tax.
Those earning more than $200,000 currently pay a capital gains rate of 23.8 percent on average.
According to Erica York of the Tax Foundation, Biden’s tax rise would push US capital gains taxes to the top of the global rankings. In Europe, capital gains taxes are on average 19 percent.
The highest rate was 42 percent in Denmark, followed by 34 percent in France and Finland. These countries fund socialized medical and substantial entitlements that the United States lacks, making Biden’s tax rises all the more reprehensible!
Biden’s tax hikes would raise more than $1 trillion, on top of his $2.3 trillion jobs and infrastructure proposal, which many Americans are rejecting owing to rising prices and inflation. This will almost certainly compel Democrats to use reconciliation to get this past Congress.
For Democrats seeking reelection, this would be “a party-line tax rise on the wealthy.”
Biden’s plan, according to York, would bring the total capital gains rate to nearly 50% in states and towns that assess their own capital gains levies. California’s rate would jump to 56.7 percent, New York City’s top 58.2 percent, and Portland’s to 57.3 percent. Investors, he claims, will move their money elsewhere.
Biden’s tax proposal hasn’t been finalized yet, according to White House press secretary Jen Psaki, but he intends to make the affluent and corporations pay for all new government services. “All tax hikes, in his opinion, should be borne by the wealthiest Americans who can afford them.”
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Despite Biden’s commitment not to raise taxes on households earning less than $400,000 per year, a White House official said Biden is considering reducing homeowners’ interest deductions. Everyone who owns a property will be affected if this typical real estate tax write-off is reduced.
“While there is liberty and justice for all, tax incentives are only available to a select few.” – Sullivan, Martin
“Your finest teacher is your last mistake,” Ralph Nader once said. Joe Biden favored Jimmy Carter, a southerner, over the party’s northern nominee for the presidency.
Biden watched Ronald Reagan win office and turn the economy around by slashing expenditure and taxes after four years of Carter’s failures. Is it possible that Joe Biden slept during the Reagan years?
Jimmy Carter took four years to wreck the American economy, but Biden destroyed it in less than a year. With the Fed hiking interest rates, inflation out of control, and investors fleeing the market, a tax hike of this magnitude will precipitate a recession.
Joe Biden’s transformation into the second coming of Jimmy Carter will be complete with this announcement. “We can’t turn back the hands of time,” someone said?
Double-digit inflation, workforce shortages, a shattered supply chain, and rising energy prices are all results of Biden’s presidency. Except for Joe Biden and progressives, everyone in America understands that “nobody can tax and spend their way to prosperity.”
Biden’s tax rise to “punish the rich” will result in reduced investment, job losses, lower capital gains taxes, and a big recession. Biden claims that Barack Obama taught him about politics. Well, it appears that Jimmy Carter taught him about economic policy. For America, it’s déjà vu all over again.