{"id":1461348,"date":"2022-05-03T08:00:15","date_gmt":"2022-05-03T12:00:15","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1461348"},"modified":"2022-05-03T08:00:18","modified_gmt":"2022-05-03T12:00:18","slug":"biden-proposes-largest-tax-increase-since-lbj","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-proposes-largest-tax-increase-since-lbj\/","title":{"rendered":"Biden Proposes Largest Tax Increase Since LBJ"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-proposes-largest-tax-increase-since-lbj%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1461348&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p><em>By William Haupt III (The Center Square)<\/em><\/p>\n<blockquote>\n<p>\u201cPeople who complain about taxes can be divided into two classes: men and women.\u201d \u2013 Will Rogers<\/p>\n<\/blockquote>\n<p>Every Democrat running for every office in the United States echoes a standard campaign theme: \u201cI plan on taxing the rich and spreading the wealth around.\u201d They chant, the rich do not \u201cpay their fair share of taxes and it is time that they do.\u201d They preach, \u201cIt is time to reduce income inequality.\u201d Their gospel is, \u201cThose who have benefited the most should help those who have benefited least.\u201d<\/p>\n<p>Who do leftists consider rich when they obsess about raising taxes? The Tax Policy Center says about 10% of U.S. households have incomes over $200,000. The top fifth of them pay 69% of all federal taxes. If \u201cthe rich\u201d already pays more than their fair share, why does the left always demand that they must pay more? This is the paradigmatic liberal axiom: \u201cIt is time that we punish the rich.\u201d<\/p>\n<p><strong>RELATED: <a href=\"https:\/\/thepoliticalinsider.com\/u-s-gave-russian-lab-550k-for-gruesome-cat-experiments\/?utm_source=home-featured\" target=\"_blank\" rel=\"noopener\">U.S. Gave Russian Lab $550K for Gruesome Cat Experiments<\/a><\/strong><\/p>\n<p>Joe Biden ran for president on a \u201ctax the rich\u201d platform, and eked out a victory over the populist Donald Trump. But he toned down the rhetoric for a few months while lobbying for his \u201cBuild Back Better\u201d pipedream. But in true progressive form, he broke the bad news to taxpayers last week. As Congress unwrapped Biden\u2019s 2023 wish-list, it was \u201cChristmas in Spring\u201d for Republicans.<\/p>\n<p>Biden\u2019s 2023 fiscal budget re-proposes all of the bad ideas that Congress won\u2019t pass and adds a new twist \u2013 \u201cthe coveted liberal wealth tax.\u201d Biden is obviously pivoting further left to fire up sullen progressives for the midterm elections. This gives them new ammunition to assail the evil GOP.<\/p>\n<blockquote>\n<p>\u201cAll we are doing is equalizing the playing field, making sure the rich will pay their fair share.\u201d \u2013 Joe Biden<\/p>\n<\/blockquote>\n<p>Biden\u2019s wish-list calls for increasing the top marginal income tax rate to 39.6% from 37%. It would also nearly double taxes on capital gains to 39.6% for people earning over $1 million. This would be the highest tax rate on investment gains since the 1920s. The rate has never exceeded 33.8%.<\/p>\n<div id=\"subscribe\" class=\"email-signup inarticle\">\n<h4>Support Conservative Voices!<\/h4>\n<h5><strong>Sign up to receive the latest<\/strong> political news, insight, and commentary delivered directly to your inbox.<\/h5>\n<\/div>\n<p>The left calls this a \u201cbillionaire tax,\u201d which is the standard progressive narrative. But billionaires are not the only ones punished. It applies to income and \u201cincreased annual value of assets.\u201d This taxes \u201cunrealized capital gains,\u201d which are not taxed until assets are converted to income. In other words, Elizabeth Warren and Bernie Sanders will be getting the wealth tax they have been begging for.<\/p>\n<p>This tax scheme will enormously complicate the tax code and creates huge investment distortions. Since liquid assets make up less than 20% of their wealth, investors will have an incentive to hold liquid assets, such as real estate, to avoid liquidating stock to pay taxes. Rather than sell stock to diversify or reinvest, investors will be forced to sell stock to pay taxes on unrealized capital gains.<\/p>\n<p>In simple terms, this means that hundreds of successful entrepreneurs and small business owners, who accumulated wealth over decades through innovation and hard work, will be punished for their success. Any tax that the left proposes always \u201capplies to a few,\u201d and spreads to millions overnight.<\/p>\n<blockquote>\n<p>\u201cThe IRS tax code is too difficult for a mathematician. It takes a philosopher.\u201d \u2013 Albert Einstein<\/p>\n<\/blockquote>\n<p>News of Biden\u2019s proposed tax hike swept through investment circles like an EF5 tornado. The S&#038;P 500 index immediately dropped 1%, the sharpest Wall Street decline this year. Fund manager Thomas Hayes exclaimed, \u201cIf we thought this had a chance to pass, the market would have dropped 2,000 points.<\/p>\n<p>There is another fly in the ointment in Biden\u2019s tax scheme; it is illegal! The Constitution states that Congress may only impose \u201cdirect taxes.\u201d Although the 16th Amendment established an income tax, unrealized capital gains are not income. In other words, Biden is taxing \u201canticipated income?\u201d<\/p>\n<p><strong>RELATED: <a href=\"https:\/\/thepoliticalinsider.com\/planning-a-summer-trip-better-include-pain-at-the-pump-in-your-budget\/?utm_source=home-headline-stories\" target=\"_blank\" rel=\"noopener\">Planning A Summer Trip? Better Include Pain At The Pump In Your Budget<\/a><\/strong><\/p>\n<p>Wealthy Americans could face an overall federal capital gains tax rate of 43.4%, including the 3.8% net investment tax on individuals with income of $200,000 or more ($250,000 married filing jointly).<\/p>\n<p>Currently, those earning more than $200,000 pay a capital gains rate of an average high of 23.8%<\/p>\n<p>The Tax Foundation\u2019s Erica York said, Biden\u2019s tax increase would drive U.S. capital gains taxes to the top of global charts. Capital gains taxes in Europe average 19%. Denmark had the highest rate at 42%, followed by France and Finland at 34%. These countries finance socialized medicine and generous entitlements the U.S. does not have, which makes Biden\u2019s tax hikes even more offensive!<\/p>\n<p>Biden\u2019s tax increases would generate over $1 trillion, which is on top of his $2.3 trillion jobs and infrastructure plan that many Americans are now rejecting due to rising prices and inflation. This will likely mean that Democrats will be forced to push this through Congress using reconciliation.<\/p>\n<p>That would mark this as \u201ca party-line tax increase on the rich\u201d for Democrats seeking reelection.<\/p>\n<p>York added, in the states and cities that assess their own capital gains levy, Biden\u2019s plan would push the total capital gains rate to over 50%. The rate would rise to 56.7% in California, 58.2% in New York City and 57.3% in Portland, Oregon. He said investors will take their capital elsewhere.<\/p>\n<p>White House press secretary Jen Psaki said Biden had not yet finalized his tax plan, but stressed he promises to make the wealthy and companies pay for all new government programs. \u201cHis view is that all tax increases should be on the backs of the wealthiest Americans who can afford them.\u201d<\/p>\n<p>Although Biden promised not to raise taxes on those making under $400,000 a year, one White House spokesman said Biden is looking at capping the interest deductions for homeowners. By decreasing this traditional real estate tax write-off, this will affect every person who owns a home.<\/p>\n<blockquote>\n<p>\u201cThere may be liberty and justice for all, but there are tax breaks only for some.\u201d \u2013 Martin Sullivan<\/p>\n<\/blockquote>\n<p>Ralph Nader told us, \u201cYour best teacher is your last mistake.\u201d Joe Biden endorsed southerner Jimmy Carter for the presidency over the party\u2019s northern candidate. After suffering through four years of Carter\u2019s failures, Biden watched Ronald Reagan take office and turn the economy around by cutting spending and taxes. One must wonder, was Joe Biden asleep during the Reagan years?<\/p>\n<p><strong>RELATED: <a href=\"https:\/\/thepoliticalinsider.com\/as-economy-contracts-biden-considers-canceling-student-loan-debt\/?utm_source=home-headline-stories\" target=\"_blank\" rel=\"noopener\">As Economy Contracts, Biden Considers Canceling Student Loan Debt<\/a><\/strong><\/p>\n<p>It took Jimmy Carter four years to destroy the U.S. economy, but Biden did the same in under a year. With the Fed raising interest rates, runaway inflation, and investors running scared, a tax increase of this amplitude will domino into a recession. This will complete Joe Biden\u2019s \u201cmake-over\u201d into the second coming of Jimmy Carter. And who said, \u201cWe can\u2019t turn back the hands of time?\u201d<\/p>\n<p>Biden gave us double digit inflation, labor shortages, a broken supply chain and high energy prices. All of America realizes, except Joe Biden and progressives: \u201cNobody can tax and spend their way to prosperity.\u201d Biden\u2019s \u201cpunish the rich\u201d tax increase will result in less investment, a loss of jobs, decreased capital gains taxes, and a major recession. Biden says he learned his politics from Barack Obama. Well, it looks like he learned economic policy from Jimmy Carter. Its d\u00e9j\u00e0 vu all over again for America.<\/p>\n<blockquote>\n<p>\u201cI wish I had known when I was in the White House what I know now.\u201d \u2013 Jimmy Carter<\/p>\n<\/blockquote>\n<p><em>Syndicated with permission from The Center Square.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By William Haupt III (The Center Square) \u201cPeople who complain about taxes can be divided into two classes: men and women.\u201d \u2013 Will Rogers Every Democrat running for every<\/p>\n","protected":false},"author":498,"featured_media":1898149,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1461348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/thepoliticalinsider.com\/biden-proposes-largest-tax-increase-since-lbj\/?utm_source=home-featured","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1461348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1461348"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1461348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1898149"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1461348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1461348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1461348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}