President Joe Biden’s $2 trillion spending package is still being stalled while the Democrat leadership is hoping to finalize a proposal on a new annual tax on billionaires’ unrealized capital gains, Democratic leadership has announced.
“We probably will have a wealth tax,” House Speaker Nancy Pelosi (D-CA) was sober enough on Sunday to confirm on CNN.
That is the dumbest idea the Democrats could come up with at this time, and that’s really saying something because the Democrats have come up with some really stupid ideas so far.
The proposal is right now being reviewed by Senate Finance Committee Chairman Ron Wyden (D-OR). It will impose an annual tax on unrealized capital gains on liquid assets held by billionaires, Treasury Secretary Janet Yellen said.
“I wouldn’t call that a wealth tax, but it would help get at capital gains, which are an extraordinarily large part of the incomes of the wealthiest individuals and right now escape taxation until they’re realized,” Yellen said on CNN.
Here’s the problem that these dopey leftists don’t seem to grasp. If you have to pay taxes on capital gains earnings that you haven’t yet realized, meaning, you have not cashed that money in and moved it to your bank account, that’s money you haven’t yet gotten your hands on to spend how you like. It’s not in your physical wallet. It’s tied up in an investment or a series of investments. Many people take their capital gains and invest it again and again.
A move like this will have rich people pulling their investments out of the markets and invest their money somewhere else where the idiotic Democrat tax theft doesn’t apply like real estate or tax-free municipal bonds the way the Kennedys always did. And if the dopey Left thinks that’s just fine because it will only harm rich corporations, think again, dumb dumbs. Middle-class and working-class Americans have retirement accounts like 401k’s from their employers and they invest in the same stocks and bonds that the rich people invest in. If a wave of rich people suddenly pulls all of their money out of stocks, the value of the stocks will go down. Working people don’t have the luxury to shift their investments into the same products that rich people can, and so they will be stuck with failing retirement accounts all because Marxist Democrats had to satiate their lust for power by spending as much money as they can get their hands on to buy votes in a quid pro quo of social programs for votes.
The Wall Street Journal tells us that this will only affect less that 1,000 people who make up the wealthiest among us. But if you read the history of the income tax, the progressives back then told us that it would only affect people who made at least $1 million a year and it would only be for 1% of their income. Starting almost immediately, through a series of changes to the income tax law year after year, the threshold amount of income was continually lowered and the tax rate percentage was raised until now everyone pays an income tax at a rate that should have started another Boston Tea Party incident.
Pelosi bragged that the investment-killing tax plan could very well be introduced as early as Monday, October 25.
The Democrats are also looking at a 15% corporate minimum tax that will force corporations to pay what the Democrats say would be their “fair share” in order to end corporations paying zero taxes.
“I think we’re pretty much there,” Pelosi said of the package, adding that some “last decisions” still need to be finalized.
The Democrat $3.5 trillion spending bill was slashed to $2 trillion by moderate Democrats with Senators Joe Manchin (D-WV) and Kyrsten Sinema (D-AR) leading them, as if $2 trillion is a lot better than $3.5 trillion. It’s still money we don’t have, which is why it’s the height is chutzpah for Joe Biden and his mouthpiece White House press secretary Jen Psaki to say that the multi-trillion dollar bill will cost zero dollars. And we have millions of people stupid enough who believe it.
The negotiating is still going on because Manchin has been indicating that he is willing to vote for a bill that comes to $1.75 trillion. He had better hire a food taster because the progressives can’t wait to get rid of him.
Sunday morning, Biden and Senate Majority Leader Chuck Schumer (D-NY) met with Manchin at Biden’s Delaware home hoping to smoothe out the final issues holding up the package.
The White House described the talks as a “productive discussion,” but no agreed-upon decisions were forthcoming. That means they haven’t started torturing him yet in that little soundproof room in Biden’s basement.
