Posted on 02/07/2023 4:54:11 PM PST by MAGA2017
President Joe Biden on Tuesday is expected to tout the nation's economic health in his State of the Union Address, just days after a blockbuster jobs report showed a strong labor market has coincided with a monthslong easing of inflation.
Looking ahead, however, Biden is expected to propose solutions for what he considers an ongoing economic ill: income and wealth inequality.
The wealth of the top 1% increased by $6.5 trillion in 2021, according to a study the Federal Reserve released last year. That wealthiest sliver of Americans controls 32% of the country's wealth, the study found.
The Biden administration's agenda, set to be announced Tuesday night, includes two policy proposals: a new tax on billionaires and the sharp increase of a current tax on corporate stock buybacks.
"The idea is to have a commitment to reducing inequality," (LOL) Reuven Avi-Yonah, a law professor at the University of Michigan who focuses on corporate taxes, told ABC News. "There's no indication that the increase in inequality is stopping anytime soon and something should be done about it, so the Democrats say."
(Excerpt) Read more at msn.com ...
The first year the minimum 20% tax rate applies and the gain is $2,500, so I must fork over $500 for taxes. The same is true for the next year so I fork over another $500.
Then I sell it for $15,000. Of course, I am a millionaire so I don't get the 15% tax rate for long term capital gains. So I pay 20% of the $5,000 gain as taxes, or $1,000. So I have paid $2,000 in taxes on my $5,000 gain, a rate of 40%. Under the current system I would pay $750 in long term capital gains in the second year.
Which one to choose? Decisions, decisions...
This would gut the tax advantages for long term capital gains, not to mention how they would handle capital losses.
The real money pit
Sure. All those billionaires are just unable to sleep nights because everyone isn’t as rich as they. That’s why they want to raise their taxes, and are showing their good faith by standing on a corner in the South Bronx passing out wads of cash to random strangers.
I’m gonna propose something a little different than standard FR philosophy on this. The very wealthy have always counted on conservative support in the past to defend the wealth that they have gained. I propose that the vast majority do NOT deserve this loyalty. Corporate leaders as well as extremely rich investors (just to name a few) have cast away the concerns of most conservative Americans.
Do I think the Dems are really serious about “soaking the rich”? Hell no! That’s who their donors are now...woke corporations. Conservatives/Republicans should throw their support behind absolutely nailing these Chamber of Commerce “citizens” and surprising the Dems by continuously pointing out that they do not have serious proposals for making the rich pay “their fair share”. When these Woke scum realize that they cannot depend on the traditional conservative support to maintain their gains (and see that support getting thrown in with the Left to confiscate their earnings), maybe they’ll see what a mistake they’ve made. Sorry, but the “Mitch McConnell class” must pay...it’s well past time.
...and the non-rich. I don't believe those 87,000 new IRS critters are going to spend most of their efforts on the "rich."
Billionaires use tax-sheltered trusts to avoid income taxes. Tax increases don’t affect those ppl. And the Dems know this. In reality, they are taxing small business and middle class
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