Posted on 05/06/2021 8:44:07 AM PDT by JV3MRC
New York Times “The Morning” newsletter writer David Leonhardt claimed President Joe Biden’s massive tax hike proposal was not “radical.” One economist was having none of it.
Leonhardt panned outcries from detractors against Biden’s tax increases like the Tax Foundation as allegedly obscuring “a basic fact about Biden’s tax plan: It would not actually raise tax rates on the rich to high levels, historically speaking.” He pivoted off of an opaque analysis on historical tax rates by University of California Berkeley associate professor of economics Gabriel Zucman to claim Biden’s plan was “not radical. For that reason, it is highly unlikely to have the harmful effects on economic growth that its critics are claiming.” CATO Director of Tax Policy Studies Chris Edwards, when reached for comment, suggested Leonhardt was “misleading” his readers.
(Excerpt) Read more at newsbusters.org ...
“increasing the highest marginal tax rate to 39.6 percent, applying this same rate to capital gains for households with over $1 million in income”
The rich will simply set up online banks and borrow on their shares at say 1% a year instead of paying 39.6% tax to the feds (and ~10% more to ‘rat-run states for a total of nearly 50%).
If Jeff Bezos had merely borrowed on the shares he sold in past years, he would be a richer man today.
Saying that tax increases have no impact on the rich is pure BS. If you really believe that, why not make it a 100% marginal tax rate on the rich? Biden is so stupid that he doesn’t see where the capital comes from to expand the economy. He needs that growth to create new jobs to absorb new entrants into the labor for (i.e., Participation Trophy graduates and illegal immigrants).
The entire basis for Socialists’ economic policy is that the size of the economic pie is fixed and the only way to help those with lower incomes is to take away from those (productive) people with higher income. Bull crap! Even if you only have 5% of the pie, if you increase the size of the pie through economic growth, your income just increased. If inflation is held in check, your standard of living just increased, too.
Biden: go back to Econ 101 and see where the statement “A rising tide lifts all boats” can be applied to fiscal policy.
LeonhardtIdiot basically asserted that ‘Nero denied that Rome burnt to the ground while he played his fiddle’...../s
Kool-aid drinker either in serious denial or just blatantly stupid when it comes to economics.
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