Reposted from 10 am
You have to watch the video to truly understand how horrific the upcoming taxes will be for the middle class, not billionaires. White people will pay more because they are white, and investment will dry up. If you’re retired, an heir, or an investor, you’re damned. The economy will be completely destroyed. I provided a summary, but the video is much better.
In only five months, we will see the largest tax hike for the middle class in U.S. history. When Biden released the budget proposal, he made a long statement about the benefits and, in another section, discussed the new billionaire tax.
The heading of the section claims that the plan requires billionaires to pay at least 25% of their income in taxes, so you might think he has a proposal to make billionaires pay more taxes. It turns out that is a lie. He’s just labeling it a billionaires tax to make it sound better, but it’s really on many more people besides just billionaires. If you read the paragraph, it says the president’s budget includes a 25% minimum tax on those with wealth of more than $100 million. That’s quite a bit different from a billionaire tax.
If he’s lying about this, what else is he lying about?
The government plans to look at everyone’s net worth that they have accumulated over their entire lifespan. Anyone whose net worth exceeds $100 million pays more tax. Why should we care about people with $100 million?
You should care because he’s lying, and that’s not the only lie.
White People Pay More Because They Are White
You need to understand where this tax plan comes from. Last year, a report was released by the US Treasury called Disparities in the Benefits of Tax Expenditures by Race and Ethnicity. This study looked at how we should design taxes based on DEI – diversity, equity, and inclusion. What they did was they went through the entire tax code, and they figured out how different taxes affect different racial groups. This study concludes that the tax code is racist. They claim that certain elements of the tax code benefit white people more than black and Hispanic people. They left out Asians.
They further recommend that the tax code be rewritten to raise taxes on white people. This would be an underhanded way for the government to take money from one racial group and give it to another. This is horrible, and this paper should have no place in government.
They say that we should tax people based on the color of their skin. If you think I’m exaggerating, go read the paper for yourself. It is very explicit about what they are trying to do.
“I thought this was against the constitution, but no.” If you look at Joe Biden’s tax plan, you will see that the entire plan is based on the treasury paper on DEI from last year.
“Joe Biden’s plan is designed to tax white people I can’t even begin to explain how immoral this paper is.
“Taxes should be based on things like encouraging business and growth and the economy and opportunities. It should have nothing to do with the color of your skin.
“So, what else is in Joe Biden’s tax plan? A whole lot of tax increases!
Capital Gains Tax
Currently, if you hold a stock for over a year and sell it, you will usually pay a 15% capital gains tax. Under Joe Biden’s new plan, you could be paying as much as 44.6% capital gains tax, an increase from 15% to 44.6%.
“It gets even worse because some states have their own state capital gains tax. Here’s how high the rate could be in California, New Jersey, Oregon, and Minnesota — you will pay almost 60% tax on capital gains. If you live in California, it boggles my mind why anyone would still live there.
The groups it will hurt the most.
Number one is retirees. This will be devastating for people who have retired. If you have worked your entire life and saved for your retirement in a 401K plan or something where your taxes are deferred when you are retired and pulling money out of that plan, you could have to pay 44.6% tax. That’s pretty shocking when it would have been a 15% tax.
“I don’t know how retirees are going to live. They’re on a fixed income. Joe Biden is going to retirees and telling them they are paying more taxes. Even if you’re relying on some other form of investment, like a pension plan, this is still going to affect you. Whoever manages the investments in the pension plan fund is going to have to pay this tax, and your pension plan is going to become underfunded really quickly.
Number two is stock traders. If you buy and sell your own investments, you’re going to have to pay more tax. Before, it would have been 15%. Now, it could be as high as 44.6% tax.
Number three is business owners. This is the biggest one. If you start a business with some small amount of money, say $1000, and let’s say you run that business for ten years, let’s also say the business becomes incredibly successful, and you sell it after ten years for $100 million; that’s all capital gains.
Before, you would have had to pay 15% to the government. Now, the government is demanding a 44.6% tax. Almost half of your hard-earned sweat over the last ten years goes to the government.
[This will destroy small businesses, the backbone of the capitalist economy. It looks like communists Bernie Sanders and Barack Obama had their hands in this.]
Even worse, Joe Biden’s tax plan includes a 25% tax on unrecognized capital gains. So even if you do not sell your stocks and you do not sell the business, you will still have to pay tax if it has gone up in value at all. So, back to our example of owning a business worth $100 million, which is almost all capital gains. You will receive a tax bill for $25 million, payable immediately. You will be forced to declare bankruptcy and liquidate your business just to pay your tax bill.
Worse, you don’t benefit if your stocks go down in value. It’s not like you get a tax credit. If your stocks go up, the government gets the benefit, but if you lose money and your stocks go down, you carry the loss.
A low capital gains tax makes it easy to find investment dollars, which is an incentive for people to invest. If taxes discourage investment, the economy dries up.
Biden is increasing death taxes. If you die, you pay more taxes, and your heirs get a tax bill of 44.6% or more. The heirs would have to sell the house to pay almost half to the government. The highest income bracket in 2025 is $500,000. It’s not uncommon for a house to be worth more than $500,000.
Joe Biden’s tax plan removes the carried interest exemption. This is an exception in the tax code, where hedge fund managers get their compensation taxed as capital gains instead of wages from profits from their investments gaining and value. This currently gives them a tax break. They’ll simply invest outside the United States.
Joe Biden proposes eliminating the 1031 exchanges. Most people don’t know about this unless you’re in real estate. This is a tax loophole where instead of selling your property, you trade it with someone else. This is often done with apartment buildings. If you’re doing a swap, it’s not counted as a capital gain. Because the money is still in the building, you can keep swapping buildings your entire career and never pay capital gains until you finally sell it at the end. Joe Biden will eliminate those swaps, which means that all the unrecognized gains that have been building up for decades would immediately become due at the 25% tax.
Any future exchanges would result in a 44.6% tax, just like the stock market. The real estate market would dry up overnight. People would sell their property because they would not want to be taxed. This would be devastating.
He is doing this three months before the election.
Biden’s tax plan to raise taxes on all of us is to cover this higher spending. How about we just go back to how things were in 2019? We would not have to raise taxes on anybody.
Watch, It’s Very Interesting:
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