One peak at the Democrats’ plan to target billionaires with ridiculous changes to the tax code and you will understand why the country is in such shambles at the moment.
On Wednesday, the radical liberal party unveiled their plan to charge high-earning, job creating Americans with a tax on their unrealized income from capital gains.
That’s right. Democrats seek to tax money not yet earned from market investments to pay for their radical spending programs.
The legislation, led by Senate Finance Chairman Ron Wyden, targets those with $1 billion in wealth or people making at least $100 million in income for three consecutive years.
The plan would start next year for those with a net worth of over $1 billion and apply to 2019, 2020, and 2021 for those making $100 million each of those years. It is meant to help pay for the massive infrastructure and social spending bill that Joe Biden is so desperate to pass.
Democratic Sen. Elizabeth Warren and Ron Wyden introducing their 15% minimum tax.
“This is part of a double header event,” the lawmakers say they will release billionaires tax plan soon. pic.twitter.com/7sbRZQjU4z
— Farnoush Amiri (@FarnoushAmiri) October 26, 2021
About 700 American innovators would be targeted as a result of the Democrat plan. Tesla CEO Elon Musk, Amazon founder Jeff Bezos, and Big Tech giant Mark Zuckerberg would be among the Democrats biggest cash cows.
Meanwhile, these three men alone are responsible for a large percentage of the American workforce. They are responsible for major innovations across multiple industries and could potentially lose out on the fruit of their labor — all because Democrats so desperately need a political win.
The U.S. Senate Finance Committee Chairman Ron Wyden unveiled a 'billionaires tax' proposal to help finance President Joe Biden’s social-policy and climate-change agenda. Read more https://t.co/uMLhy3GdYr pic.twitter.com/osBbBZSkNz
— Reuters Asia (@ReutersAsia) October 28, 2021
This plan sets an incredibly dangerous precedent that should concern every American.
Essentially, it’s Soviet Russia all over again.
Instead of the centralized government targeting wealthy farmers as they did in former USSR, the American federal government seeks to target wealthy innovators of industry.
While this has immediate consequences for U.S. billionaires, they horror will eventually trickle down to working class.
“Once they run out of other people’s money, they will come after yours.”
The proposal differs from the current tax regime, as gains would be taxed even if they are not realized. Today, billionaires whose investments grow in value are taxed on those increases, known as capital gains, when those assets sell. The new tax would apply to tradeable assets, such as stocks.
According to Wyden’s plan, billionaires such as Musk, Bezos, and Zuckerberg would face steep tax bills early on in the new tax regime, accounting for years of appreciation. They would be taxed at a long-term capital gains rate of 23.8% on how much their stock has appreciated, leading to a windfall of revenue for the federal government.
The combined initial tax of the 10 wealthiest billionaires would net some $275 billion. The billionaires would be allowed five years to pay the new taxes levied.
While the tax would only apply to tradeable assets, the new billionaire income tax would also target illiquid assets. Those assets, such as real estate, art, or stakes in privately held businesses, would be taxed when they are sold and an interest-like fee would be applied.
Meanwhile, Sen. Manchin, seemingly the only Democrat with any sense, balked at his colleagues’ plan to tax every billionaire. He said, “I don’t like it. I don’t like targeting people who contributed to society and create a lot of jobs and a lot of money and give a lot to philanthropic pursuits.”
Democrats are seeking to completely eliminate the incentive to be great, to innovate, to champion an industry by promising that your hard earned dollar will be involuntarily taken from you.
In essence, they’re taking from one corporation and giving it to another — the U.S. federal government – arguably the largest and most insidious corporation in existence.
Author: Sebastian Hayworth