How The Biden Regime Intends to Tax the Middle Class
How will the Biden regime pay for trillions of dollars for Covid stimulus and Infrastructure bills (both mostly Democrat agenda funding), as well as the Green New Deal (dismantling of America's productive energy industry)?
They can't simply print money because that would result in runaway inflation, which is already in the offing.
Kelly D. Johnston insightfully explains in an April 23, 2021 New Sources article: How One Biden Tax Proposal Will Hit the Middle Class Hard:
You will be told that the tax plan only taxes the wealthy. Untrue. Corporations do not ultimately pay taxes – they collect them [and pass them on to customers]. Their “promise” won’t include intergenerational transfers of property and assets, like houses, family businesses, family farms, and stock.
Meet stepped-up basis. Here’s how that works. Say you’re a 60-year-old almost-retiree whose 90-year-old parent just passed away. You are bequeathed their Florida home acquired in 1980 for $100,000. Its value is now $500,000. Hopefully, it won’t be complicated by a reverse mortgage or isn’t burdened by other forms of leveraged debt. You sell it for $500,000. Thanks to “stepped-up basis,” you should owe no federal capital gains tax on the sale.
But what happens if all this happens after Democrats eliminate this so-called “loophole?” You’ll owe capital gains taxes on the gain in value since the property was purchased 41 years ago, most of which is probably inflation. That’s a likely 20 percent tax hit on the “gain” of $400,000 – some $80,000 to Uncle Sam. For people with incomes over $1 million, Biden may raise Capital Gains taxes to match the highest personal income tax rate of 39.5 percent.
The Biden plan may exempt the first $1 million of “unrealized” gains, but that’s a shallow threshold for many family businesses and farms. And it is not just homes or beach property. It includes stocks and family businesses....
Being allowed to keep your or your family’s own money is now a “tax loophole.”...
Your pensions and IRAs may be next....
Matt Vespa observes in an April 27, 2021 TownHall article, So, That's How Biden Intends to Tax the Middle Class:
... if you try and keep something for your family after you’ve died—the government takes a chunk of it. It’s all par for the course regarding Democrats now regarding taxes and spending. At the same time, this is what voters wanted. I don’t want to hear it from Biden supporters who are about to be potentially screwed by this hike.
Biden Bets the Farm - To "Change the World", by Patrick J. Buchanan, Vdare, April 29, 2021:
... After enacting a COVID-19 relief package of $1.9 trillion in March without a single Republican vote in Congress, Biden proposed a jobs and infrastructure program of $2.2 trillion. He has now added an "American Families Plan" of another $1.8 trillion....
While Biden's $6 trillion in total spending is spread over several years, it represents a claim on the nation's wealth equal to 30% of GDP—a figure comparable to FDR's New Deal and LBJ's Great Society....
Biden proposes to raise the U.S. corporate tax by one-third to 28%, raise the personal income tax rate to 40%, double the tax on capital gains to 40%, and raise death and inheritance taxes to effect a greater equality of wealth in America....
... there is a real risk to the nation in these massive Biden bills.
Deficits exceeding $1 trillion. A national debt larger than the national economy and growing inexorably. A Federal Reserve running the printing press night and day to produce the dollars to push the nation back to full employment....
In business, they say you get what you pay for. In this case, you're going to pay for what you got.