Nothing is certain, except death and taxes. We’ve all heard that, we believe it, and many of us have a notion as to its origin. According to Quote Investigatorâ, the exact origin remains uncertain. Among the often-attributed authors are Benjamin Franklin, Mark Twain, and Daniel Defoe.
In Washington, D.C., taxation is as polarizing as any issue, divided mostly along party lines. Democrats favor ever-higher taxes, and Republicans prefer lowering taxes, citing the Laffer Curve effect of increasing revenue as tax rates are cut. The tax-hiking crowd ignores econometrics, in favor of some mystical “fairness” and “equity” in society.
True to form, the Biden Administration has produced a proposal for dramatically increasing taxes. Ironically, the proposal has nothing to do with revenue generation. Thankfully, the new Republican House of Representatives considers the proposal D.O.A. In the spirit of the age-old “tax the rich” mantra, punitive provisions would raise the Corporate Tax rate from 21% to 28%, plus doubling the tax on profits earned overseas. Corporate stock buybacks, now taxed at 1%, would quadruple. Taxpayers with incomes of $1 Million+ would see Capital Gains tax rates nearly double, along with incurring a 25% minimum tax on total income.
Taxpayers earning more than $400,000 annually would see an increase in the top tax rate, from 37% to 39.6%. Also, for these people, the Obamacare Investment Tax would increase from 3.8% to 5%. Perhaps the most insidious tax proposal would apply a Wealth Tax to unrealized gains on assets. In a recent Blog, I called this Taxation Without Monetization.
As expected, Biden’s proposal reflects the Administration’s resentment of successful people and wealthy individuals. Strangely, these very taxpayers have become the Democrat voting base in recent years. Americans need to be vigilant about what will happen to them if “progressives” are again handed complete control of our government.
Perhaps the most insidious (and regressive) tax of all is the ever-higher prices we pay for necessities during inflationary times. Getting inflation under control should be the primary focus of the Administration, but that would require a reduction in spending. This proposed tax-and-spend package does the exact opposite.
Added Deficit Spending would increase our National Debt to $51 Trillion, and interest payments would exceed the annual budget for the Defense Department. These are government estimates, which are notoriously optimistic.
I find it interesting that Biden defines “the rich” as people earning more than $400,000 annually. Seems that is the exact salary of the President.
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