Biden Launching a Broad Attack on Our Prosperity
Posted April 29, 2021
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.