Like everything else coming out of this economically and morally bankrupt administration, Joe Biden’s campaign promises disguised as a budget are full of lies and subversion. Presidential budgets typically fail to pass Congress, but Biden’s $7.3 trillion spending proposal offers a glimpse into Democrats’ wealth-targeting tactics and should scare the heck out of them.
of the white house says This budget aims to “cut costs and give families more leeway,” but it’s a bizarre and insensitive gaslighting of struggling middle-class and working-class Americans. . Although the inflation rate has broken down from its peak of 9.1% in June 2022, prices remain high and families are still under stress.
Americans need to wake up or they will live in an economic nightmare forever.
Assuming Biden’s crazy proposals don’t worsen the economy and cause interest rates to skyrocket, under the most optimistic scenario, his budget would add trillions to the national debt, increasing the national debt by 45% over the next decade. It will reach $100 billion.
Mr. Biden is proposing the largest tax increase in history for those who pay the lion’s share of federal taxes, all in the name of “fairness,” of course.
He also wants to raise the corporate tax rate from 21% to 28%, which may sound appealing but would likely make U.S. companies less competitive. And the taxes are not paid by the companies themselves. Businesses will pass additional burdens onto employees and consumers who are already suffering enough.
If these proposals take hold, they will not only have a significant negative impact on the economy, but will also, of course, set up governments to increasingly steal the people’s wealth to pay for their own power grabs. Therefore, it will become a benchmark for everyone. .
crosshair capital gains
One of the most egregious changes proposed is to change the capital gains rate to an ordinary income rate. Capital gains are payments you make on money that has already been taxed when it increases due to your risk. The proposal would start with people making more than $1 million a year. Not only will this have a huge impact on capital allocation and liquidity, but once introduced to high-income groups, it could easily trickle down to the middle class. It’s happened before and could easily happen again.
Changes to capital gains tax rates could also impose huge penalties on family-run businesses making once-in-a-lifetime exits.
Biden also reinforces class divisions by conflating wealth and income. White House’s new budget”fact sheet” repeats the lie that “billionaires earn their money in ways that are often taxed at lower rates than regular salary income and are not taxed at all.” As a result, the administration says, “many of these wealthy Americans are able to pay an average income tax rate of just 8 percent on their total income, which is a lower tax rate than many firefighters and teachers.” claims.
Now, if you’re wondering how billionaires end up with an 8% income tax rate, that’s surprising, but they don’t. The claim stems from a White House “study” aimed at examining “income from unsold stocks.” What exactly does that mean? The tax rate on qualified dividends is 0%, 15%, or 20%, depending on your income. So what are they talking about?
Of course, this does not translate into an increase in the stock price at any particular point in time. This is a bogus proxy for a wealth tax. This is not how income taxes work, and claiming that this is the actual income tax rate for billionaires and portraying it as the average tax rate for the “wealthiest people” is an outright lie.
property rights are at risk
But why should we expect truth from this administration? Why expect fiscal discipline? And why would we expect anything other than to try to further plunder our wealth to secure government power?
Many Americans may be inclined to support raising taxes on billionaires, but don’t be fooled. It’s a trick to get people to give up their property rights. Billionaires will find other loopholes. The wealth of the middle and working classes will become vulnerable to government plunder. (To understand this threat in more detail, see my recent book “you won’t own anything. ”)
The Biden administration is proposing trillions of dollars in government spending to “support the middle class.” I know how much government assistance has affected my quality of life, and I can’t afford more.
When it comes to affordability, the government laughably claims that increasing Pell grants will make college more affordable. Increasing government spending does not reduce costs. It simply creates another mechanism for universities to raise tuition prices, making it cheaper.
With the national debt projected to exceed $45.1 trillion, it’s clear that promises of “deficit reduction” are more than a joke. That’s a recipe for economic ruin.
The president’s budget is by no means realistic or final, but it is a reminder that this administration is only interested in maintaining power and expanding government, not securing the American Dream or restoring our financial footing. . Americans need to wake up. Otherwise, they will forever live in a financial nightmare.
