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  • Writer's pictureLeRoy Cossette

DEMOCRATS DOING WHAT DEMOCRATS DO BEST - TAXES

A policy group this week warned that the U.S. Department of Treasury’s proposed budget could significantly increase taxes for certain Americans, namely those paying capital gains taxes.


The budget called for a record high 44.6 percent capital gains tax rate, which be the highest rate proposed since the tax was created in the 1920s.


“The rate disparity between taxes on capital gains and qualified dividends on the one hand, and taxes on labor income on the other, also encourages economically wasteful efforts to convert labor income into capital income as a tax avoidance strategy,” President Joe Biden’s proposed budget said.


But after it was proposed, the Americans for Tax Reform, described as a conservative-leaning group that seeks lower taxes, said the plan could be disastrous for the U.S. economy, which is already struggling with high inflation and interest rates.


“President Biden has formally proposed the highest top capital gains tax in over 100 years,” John Kartch, with Americans for Tax Reform, wrote in a policy paper earlier this week.

“Biden’s 2025 budget calls for about $5 trillion in tax increases over the next decade.”


Mr. Kartch warned that “under the Biden proposal, the combined federal-state capital gains tax exceeds 50 percent in many states, including California, New Jersey, Oregon, New York, and Minnesota. California, notably, would have a 59 percent capital gains tax rate when factoring in the proposed Biden tax plan, his group found.


“Worse, capital gains are not indexed to inflation. So Americans already get stuck paying tax on some ‘gains’ that are not real,” he warned. “It is a tax on inflation, something created by Washington and then taxed by Washington. Biden’s high inflation makes this especially painful.”


On Thursday, the editor-in-chief of Forbes magazine, Steve Forbes, also warned on Fox News that the capital gains tax levy proposal would cause “a Great Depression” and the United States “will be in 1932 again.”


Significant portions of the Trump-era Tax Cuts and Jobs Act expire next year, and President Biden suggested this week that if he wins reelection, a number of Americans could face larger tax bills. “Donald Trump was very proud of his $2 trillion tax cut that overwhelmingly benefited the wealthy and biggest corporations and exploded the federal debt,” the president wrote on social media Tuesday. “That tax cut is going to expire. If I’m reelected, it’s going to stay expired.”


In 2017, President Donald Trump signed the measure that dramatically overhauled the U.S. tax code, reducing the top individual income tax bracket from 39.6 percent to 37 percent. Changes under the law to the individual income tax are slated to end in 2025.


Other analysts say that if it expires in full, a large number of Americans will see their tax payments increase. “If lawmakers allow full expiration to occur, most Americans will see their personal tax bills rise and incentives for working and investing worsen,” Erica York, senior economist and research director at the Tax Foundation, told Fox News.


The Tax Foundation has said that a person making $30,000 each year would see their taxes rise about $253.75 on average in 2026, while a married couple with two children who make $165,000 would have to pay about $2,450.50 more.

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Kristin Whitesides
Kristin Whitesides
Apr 30
Rated 5 out of 5 stars.


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J SJ
J SJ
Apr 29
Rated 5 out of 5 stars.

Of course. Then you have all the idiots that vote Big D and don't know why

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LeRoy Cossette
LeRoy Cossette
Apr 29
Replying to

That's what happens when your head is devoid of any gray matter.🤔

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