April 23, 2021

PALEONOMICS:

Biden's tax-the-rich plans (Hans Nichols, 4/23/21, Axios)


The proposal, to be announced ahead of Biden's address to Congress next Wednesday, is an opening bid for Hill negotiations.

"For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%," Bloomberg News reported.

The Dow closed down more than 300 points after the plans leaked.

Practically and politically, the White House needs buy-in from Congress to pay for social spending in the next phase of his plan to reshape the American economy, the American Families Plan.

Between the lines: Democrats close to the White House believe that the amount of revenue that the IRS can collect on capital gains actually decreases past a certain point, probably in the low 30% range. That means the ultimate capital gains rate could be well below 43.4%

Gains ought not be taxed at all--we want people to invest--tax consumption instead.

Posted by at April 23, 2021 12:00 AM

  

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