We are in the serious throes of an inflation cycle, the likes of which we haven’t seen since 2008, but probably since the dreaded Jimmy Carter years. We will forevermore know this economy as “The Dreaded Biden Years,” and for good reason.
It seems that everything an administration could do that would hurt the economy is being done by the Biden administration. It’s uncanny. It’s almost as if they are intentionally trying to wreck our financial system in a Cloward and Piven manner. No one could be as reckless as this unintentionally.
President Joe Biden‘s 2023 fiscal budget proposal consists of a minimum 20% tax on wealthy individuals, but the plan would allow for the taxation of unrealized gains. This means if you invested in something and it made gains in the investment, but you haven’t yet put your hands on the money, Joe Biden wants to tax it, anyway. So, if you have a stock that goes up by 60%, Biden wants to tax it. But then, the next year, it the same stock could go down to a gain of 20%, and you still have not touched the money, Biden wants to tax that too.
The Democrats never met a tax they didn’t like hike.
A tax policy like this would almost instantly remove incentives to invest. This means many companies on the stock market would not get eager investors because they would want to avoid paying taxes on unrealized gains. It’s one of the stupidest ideas to ever come from the Left and yet here we are. It’s economic suicide. And now that you know about it, be on the lookout for the gaslighting lies that this administration will tell just to get you onboard. They’ll bring out Treasury Secretary Janet Yellen to explain to the dunce Chuck Todd on a Sunday program why it’s a good thing to tax wealthy people 20%, and how it should be even more. We’ll see more financial eggheads who have never held a real job in their lives starting a class warfare debate and throughout all of it you will never once hear the administration talk about how they want to punish the very people who provide jobs to the middle class. I have never gotten a job from a poor person, have you?
I once made the observation that Joe Manchin (D-WV), a Democrat, may be the savior of our republic. And it was a good bet because Manchin has now come out opposing Biden’s idea to wreck the economy even further by taxing unrealized capital gains.
“You can’t tax something that’s not earned. Earned income is what we’re based on,” Manchin said, according to The Hill. “There’s other ways to do it.”
Folks, sneaky governments always get an idea’s foot through the door by making it appear like what they want to do will not affect the middle class. It’s like when the income tax (16th Amendment) was unconstitutionally passed, they told Americans that it was only 1% from people who earned more than a million dollars a year. Now, it’s everyone, and it’s a heck of a lot more than 1% of your income. Mark my words, the same will happen here if the bill is allowed to go through.
And for the Democrats, this unrealized capital gains tax is not about taxing the wealthy, it’s about taxing the middle class. Once Americans accept that the government can tax people for gains they have not yet touched, they will go after your 401k plans, taxing you for any gains your plan makes even though you cannot touch it until you retired. They are using the wealthy to fool you into thinking their plans will not affect you, but mark my words, they want your money. There are far more middle class Americans who have 401k plans through their employers than there are rich people they can tax.
“Everybody has to pay their fair share, that’s for sure. But unrealized gains is not the way to do it, as far as I’m concerned,” Manchin said, according to the outlet.
I would argue that the wealthy already do pay their fair share and then some. According to the latest numbers available from the IRS, the top 1% of wage earners paid 35.1% of the entire federal income tax burden. When only 1% pay 35% of everything I think we can safely say that they pay their fair share.
In case you’re interested, here’s the breakdown of the wage earners and the percentage that group pays to cover the cost of government:
Top 1% pay 35.1%. Remember, that’s not a 35.1% tax rate. That’s how much of the entire federal income tax burden is paid by the group.
Top 5% pays 21%.
Top 10% pays 68.3%.
Top 25% pays 85.6%.
Top 50% pays 97.1% of everything.
If the top half of the country pays 97.1% of the entire federal income tax burden, that means the people in the bottom 50%, those who use up most of the services of the federal government that the top half pays for, only pay 2.89%.
SOURCE: Tax Foundation using IRS data.
Share these numbers with your liberal friends who repeat the mantra that the rich have to pay their fair share.
Biden says his proposal would apply to the wealthiest individuals, those worth more than $100 million. Their worth should have nothing to do with it. The income tax should only relate to how much they earned during that fiscal year.
“The tax code currently offers special treatment for the types of income that wealthy people enjoy. This special treatment, combined with sophisticated tax planning and giant loopholes, allows many of the very wealthiest people in the world to end up paying a lower tax rate on their full income than many middle-class households,” according to the budget proposal. “To finally address this glaring problem, the Budget includes a 20 percent minimum tax on multi-millionaires and billionaires who so often pay indefensibly low tax rates. This minimum tax would apply only to the wealthiest 0.01 percent of households—those with more than $100 million—and over half the revenue would come from billionaires alone.”
What they call “special treatment” are tax breaks that the Congress writes into the tax laws and the president signs off on. Don’t let them fool you into thinking that the wealthy are the ones who created the tax codes. Even being lobbied, the ultimate decision comes down to Congress and the president.
And here’s what we really mean by a loophole. This is a simplified version, but it’s how things are done. Suppose a member of Congress wants to have more affordable housing built in his or her district to make it appear they are not as worthless as they seem at their job. The member would propose an exemption of taxes for investors who build affordable housing to whatever specifications the Congress deems in the exemption. So, just for laughs, suppose Congress passes an exemption that says an investor who builds affordable housing to match the specifications Congress deems, they can take a 10% tax break off of their yearly taxes. That way, the investor gets to pay 10% less on their federal taxes and people get to buy affordable housing. And the investor will still earn a profit from the building of the affordable housing. To justify that, the investor could have invested the money in the private sector and probably gotten a much higher return, but he invested in the federal program to help people and take advantage of the tax break. A wise investor could participate in enough of these tax break programs to reduce their tax liability up to 100%. This is how we hear of rich people hardly paying any taxes, but it’s 100% legitimate because they participated in the programs written up by the virtue-signaling members of Congress. The investors helped a lot of people and it rewarded them for their efforts.
All you will hear from Democrats is that the wealthiest among us do not pay their fair share. It’s a lie, a bold lie, and the evidence shows it.
The Democrats want to punish those investors by taking more of their earnings. That means they won’t invest that money in the public or private sectors because government is going to waste it on programs designed to build legacies for the Democratic Party. What will happen is many wealthy people will pull their money from markets and invest them in things like tax-free municipal bonds like the rich Democrats in Congress. That’s what happened during the Carter years when the rich didn’t want to get unreasonable returns on their investments because of government tinkering in the economy. It wasn’t until Ronald Reagan came along and got the tax rate down from a top rate of 70% to 28% when the rich pulled their money from the tax shelters and started investing again. That’s when the economy boomed. The same scenario happened under Donald Trump‘s administration when the Republicans in Congress lowered the tax rates across the board. Our economy exploded with investment. Every income level was doing well. And then, the 2020 thing happened and we’re heading back to the Carter years.
And before leftists reading this want to scream, rant, and rave at Joe Manchin for opposing a tax on unrealized capital gains, he is only serving the people of West Virginia who he represents in the Senate.