President Biden proposes a punitive wealth tax, and the AP dutifully publishes a puff piece saying how great Biden’s economic policies are By Jack Hellner
The proposal includes taxing unrealized capital gains which are not income. The tax would destroy investment and cause stock prices to go down. The collapse in stock prices would harm everyone because public pensions will be harmed, leaving government entities trolling for higher taxes.
It is not as if Musk, Buffet, Gates, Bezos, and other billionaires have billions sitting around waiting to pay taxes. They would have to sell assets and they would be inclined to move more investments overseas, which would contribute to economic decline.
There are two sensible, easy ways, to get more money from billionaires.
The first is to only allow the billionaires to deduct their cost, instead of market value, for charitable contributions. Allowing them to deduct market value makes us subsidize them.
The other sensible, appropriate way is to finally tax hedge fund billionaires, like George Soros, at ordinary income tax rates instead of at a lower special rate. From the Associated Press:
The fading of the pandemic and the growth has enabled the deficit to fall from $3.1 trillion in fiscal 2020 to $2.8 trillion last year and a projected $1.4 trillion this year. That deficit spending paid off in the form of the economy expanding at a 5.7% pace last year, the strongest growth since 1984. But inflation at a 40-year high also accompanied those robust gains as high prices have weighed on Biden’s popularity.
There is so much misinformation in this article that it is hard to know where to start
For the Biden administration, the proposal for the budget year that begins Oct. 1 shows that the burst of spending helped to fuel growth and put government finances in a more stable place for years to come as a result. One White House official, insisting on anonymity because the budget has yet to be released, said the proposal shows that Democrats can deliver on what Republicans have promised before without much success: faster growth and falling deficits.
The expected deficit decrease for fiscal 2022 reflects the solid recovery in hiring that occurred in large part because of Biden’s $1.9 trillion coronavirus relief package. The added jobs mean additional tax revenue, with the government likely collecting $300 billion more in revenues compared to fiscal 2021, a 10% increase.
Ways To Deal with Stress Quickly
Here’s What Full Mouth Dental Implants Should Cost You in 2022
Folding Beds for Any Room
New York: Unsold Phones Are Almost Being Given Away
There is nothing stable about this massive spending and out of control deficits. A $1.4 trillion deficit is not stable and a wealth tax will reduce economic growth so won’t help. The economy was growing rapidly at the end of 2020, before Biden took office and job growth was expected to increase rapidly because the lockdowns had ended and because of the vaccine.
The $1.9 trillion that Biden passed actually paid people not to work and delayed their comeback to jobs. It also fueled rapid inflation which is harming government stability.
Social security and Medicare are now projected to run out of money sooner than before. How is that stable?
Here is one of the stupidest sentences in the entire article.
The lower deficit totals will also be easier to manage even if interest rates rise.
The government is already $30 Trillion in debt and if the cost of funds goes up a minor 2%, which would still be over 5% less than the current destructive inflation rate, the deficit would eventually increase by $600 billion per year. The problem will compound rapidly. That is why the Federal reserve has been so slow to act on raising interest rates to fight inflation.
Democrats always claim the rich don’t pay their fair share but in 2019, the latest year available, the richest 1% paid 38.8% of income taxes even though they earned 25.6% of income. They paid an average tax rate of 25.6%. The top 5% paid 59.4% of taxes while earning 35.9% of income. They paid an average 22.8%.
Meanwhile, the bottom 50% earned 11.5% and paid only 3.1% of taxes. Their average tax rate was 3.5% or 1/7th the rate of the top 1%.
It is absolutely pathetic that the media and other Democrats pretend that the rich don’t pay their fair share and pay a lower rate than low-income Americans. It is a bald-faced intentional lie to mislead the public.
The only reason that Biden is proposing this tax is to buy votes from people who have no skin in the game.
The nonpartisan Tax Policy Center estimated that 57% of U.S. households paid no federal income tax in 2021, compared with 44% the previous year,
One thing that the article did get right was that revenues are rising rapidly and that is under the Trump tax rates. Since Trump lowered rates, tax revenues have soared. Yet the media and other Democrats continually intentionally mislead the public that the tax rate cuts cost the government trillions.
The truth clearly doesn’t matter when the media and other Democrats are pushing an agenda.
| FY 2021 | $3.86 (estimated) |
| FY 2020 | $3.71 trillion (estimated) |
| FY 2019 | $3.46 trillion (actual) |
| FY 2018 | $3.33 trillion |
| FY 2017 | $3.32 trillion |
While Biden has been destroying the U.S economy by destroying fossil fuel industries, by causing inflation, and with massive new regulations, plus advocating taxes, he has been helping China as fast as he can.
The Justice Department is ending a controversial program, launched under the Trump administration, to hunt down Chinese spies. The “China Initiative” was designed to tackle a top national security priority: identifying and prosecuting those responsible for China’s widespread theft of hundreds of billions of dollars a year in American trade secrets and intellectual property.
Biden is dropping tariffs on 352 products from China.
Biden has a strange way of punishing China for their support of Russia and the media still doesn’t care about all the kickbacks from China, Russia, and Ukraine to the Bidens. I wonder why the public isn’t allowed to see the transcript of Biden’s call with Xi?
Comments are closed.
