Not only does President Biden’s insane $6.8 trillion "tax the rich" budget proposal he announced Thursday read as though it were drafted by a starry-eyed college freshman, but his pitch for the plan illustrates that he must think America suffers from amnesia.
In addition, at a time when the federal debt is at more than $31 trillion, his proposal would add another $20 trillion within 10 years by expanding existing programs and adding more.
And that’s despite the massive tax increases, which may be the most insane part of his proposal.
Biden’s plan would set the rates for corporate taxes and capital gains taxes higher than what they are in China at a time when the United States is struggling to compete with the communist regime.
In this case Biden wants a 33% increase in the corporate tax rate — from 21% to 28%.
And as any first-year economics student can tell you, corporations don’t pay taxes — their customers do.
When you raise corporate tax rates, they either raise the price of their own goods and services, or they go out of business.
Biden also wants to raise the top individual income tax rate from 37% to 39.6% for individuals making more than $400,000, ostensibly keeping his oft-repeated promise to not raise taxes for anyone making less than that amount.
But it disregards the hidden tax everyone would pay through the corporate tax rate hike.
However, the biggest, most troubling issue deals with his capital gains tax proposal.
Biden wants to nearly double the capital gains tax rate on anyone earning over $1 million from 20% to 39.6%.
In addition, capital gains taxes are currently assessed only when a taxpayer or his heirs sell off a particular asset.
Biden wants to change that also.
The plan calls for taxing capital gains on assets when an asset’s owner dies, "ending a tax benefit that allowed the unrealized appreciation to go untaxed when transferred to an heir," Bloomberg reported.
The capital gains tax would be paid by the heir whether he wanted to liquidate the asset or not. This would, in most cases, force the heir to sell all or part of the asset in order to pay the tax.
It’s one thing if the asset subject to capital gains is a portfolio in common stocks.
But what if it’s a family business, one that the deceased worked a lifetime to build, and flourish, and grow, with every intention of turning over to his children?
Under the Biden plan they would likely be forced to sell.
It’s worse for the ultra-wealthy.
“The plan also includes Biden’s promised "billionaires tax," which would establish a minimum 25% rate for the top 0.01% of earners and include taxes on unrealized capital gains," Forbes reported.
As part of his hard sell yesterday, he touted the financial "success" of his administration.
"I took the most aggressive action ever — in all of history in any country — to take on the climate crisis by lowering your home energy bills," he claimed.
But the Republican National Committee had its own facts and figures at the ready.
"Biden says he is 'lowering your home energy bills,' they tweeted.
"Huh? Electricity is up 11.9%, fuel oil is up 27.7%, and natural gas is up 26.7% over last year."
Financial guru Larry Kudlow, who served as the former director of the National Economic Council under President Trump, believed Biden’s tax and spending plan "looks like it was written by Senators Bernie Sanders and Elizabeth Warren."
He gives it way too much credit. It was more like Rep. Alexandria Ocasio-Cortez, D-N.Y., wrote it — while wearing her Met Gala "Tax The Rich" dress.
And now Pinocchio is trying to sell it.
Michael Dorstewitz is a retired lawyer and has been a frequent contributor to Newsmax. He is also a former U.S. Merchant Marine officer and an enthusiastic Second Amendment supporter. Read Michael Dorstewitz's Reports — More Here.
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