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Biden Launching a Broad Attack on Our Prosperity

So let me get this right. President Biden has proposed the highest capital gains tax in, probably, history. I'm not quite sure. I know, though, that it's the highest in the past 50 years.

At 43.4% - added with the corporate tax - that gets you to more than 50%. And then, of course, state capital gains will get you close to 60%. Nobody in Europe is even close to that. Not even Bernie Sanders' beloved Sweden, which is at 30%. By the way, China is at 20%. And, by the way, China's 25% corporate tax would be lower than our 28%.

So it's the combination of jacking up taxes on companies, and their profits, and their gains, or any time you sell a small business -or a farm or a ranch - you pay capital gains.

And, by the way, Team Biden might eliminate the step-up basis for capital gains around the death tax. Meaning: Heirs would have to sell assets immediately - a plan that the Penn-Wharton school claims would raise $113 billion.

So it's pouring taxes on taxes and attacking investment, which is the key to blue-collar middle class living standards. They're being attacked.

And it's an attack on our competitiveness in the global race for capital. These are policies that will surely throw a wet blanket on our booming economy.

Lawrence Kudlow

Posted April 29, 2021
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