Whenever the Democrats want to raise our taxes, they always cry that the rich do not pay their fair share. That claim is totally contradicted by the actual facts, but that has never stopped them. On Sunday, Hot Air posted an article about their latest scheme to ‘tax the rich.’
The article comments on the Biden administration’s plans for a ‘billionaires tax’:
This isn’t technically a “billionaire’s tax” because it hits anyone making more than $100 million. That’s a staggering amount of money for most of us, but not everyone who brings in $100 million actually has a billion dollars in wealth laying around. That’s sort of a nitpick, I admit, but it’s worth pointing out.
Just as a reminder, under the current system, the top ten percent of earners in the United States (those making more than $151K per year) pay more than 70% of the taxes collected by the government. The top one percent (making more than $546K) pay nearly 40% by themselves. The idea that high earners aren’t “paying their fair share” is simply a display of intentional ignorance.
Another detail of the proposed tax hike should also run into opposition and a likely court challenge. The description of the amount of “income” to be taxed includes the phrase “unrealized investment income.” In other words, if the shares comprising your retirement plan or your stock portfolio go up by a given percentage, that increase will be treated as income and you’ll be taxed on it even though you haven’t cashed it in yet.
So why should I leave money in the stock market if I have to pay taxes on it whether I cash it out or not? Why should I invest in a home if it is going to cost me money each year in addition to the real estate taxes and expense of owning a home? What is that going to do to the stock market and the real estate market?
The article concludes:
Here’s another thing to remember about those people with incomes at those levels. They don’t just pay a lot of taxes. They also tend to be max donors to political campaigns and to PACs as well, including to Democrats. I imagine they will all be watching closely to see how each member of Congress plans to vote on this and those planning to vote for it probably shouldn’t expect those donors to be whipping out their pens and checkbooks for them in the midterm races.
Manchin and Sinema have already come out against any big tax hikes while the nation is reeling under the current Bidenflation levels. It would be stunning if you could find a single Republican to vote for it. This sort of “eat the rich” tax proposal is the stuff of dreams on the left, intended to make the Democratic Socialists sequel with delight. But it’s not a serious proposal and you probably shouldn’t start getting your hopes of seeing it pass into law too far up just yet.
I hope the author of the article is right. The Democrats may get desperate to do something as they watch to polling about the approaching mid-terms.