Americans received more unwelcome economic news yesterday as third-quarter GDP numbers fell far below expectations, marking the slowest period of the recovery to date. However, despite clear signs that their economic policies are already hampering the recovery started under President Trump, Democrats continued to press forward with their massive spending package officially titled the “Build Back Better Act,” or BBB. While the sticker price of the legislation was dropped to $1.8 trillion last night (even though many experts predict the package will end up costing far more than the advertised price) the bill still amounts to a massive expansion of the federal government’s reach that will cost taxpayers dearly. For a country still struggling to recover from the pandemic and facing new pressures from runaway inflation, supply chain woes, and a growing threat from Communist China, that’s anything but good news.
As the Democrat-controlled House Ways and Means Committee unveiled last month, Biden’s spending plan would increase the corporate tax rate from 21% to 26.5%, above the global average of 23%. According to the Tax Foundation, such an increase would also subject American companies to a higher tax rate than Communist China. There, companies pay a 25% standard corporate tax, and certain industries encouraged by the Chinese government can see rates as low as 15%.
The Democratic plan would also increase “the long-term capital gains and qualified dividends tax rate to 25%” according to the Tax Foundation, and would create “a new 3% tax on modified adjusted gross income above $5 million, in addition to the current law 3.8% net investment income tax.” This, combined with state-level taxes, would make the integrated tax rate for corporate income 56.6 percent, more than double that of China. This would give America the third-highest integrated tax rate in the developed world. The only nations with a higher rate would be Ireland and Korea. As destructive as this would be for American enterprise, some Democrats are going even further.
On Wednesday, Democratic Senator Ron Wyden proposed arguably the most radical tax proposal in history. His plan would create a tax on “unrealized” capital gains. Currently, individuals only pay a tax on investment profits, or capital gains, once an asset is sold. This plan would tax assets as income, regardless of whether they are sold, meaning individuals would be forced to pay taxes for simply owning assets. While Wyden insists this plan would only affect billionaires (hence calling it the “Billionaires Income Tax.”), once the precedent is set that all private asset ownership can be taxed by the federal government, it would almost certainly spread to all wealth groups. The proposition has divided Democrats, and some are even outright questioning its constitutionality. However, Biden Treasury Secretary Janet Yellen has also recently floated the idea, suggesting that it may not be as far-fetched as most Americans would hope.
Even the supposed “compromise” tax proposals paint a concerning picture for American businesses. In the latest framework released Thursday, Democrats would institute a 15% minimum tax on companies that earn over $1 Billion in profits. There would also be a 1% surcharge on all corporate stock buybacks. Companies often buy back shares to stimulate demand while internally controlling the supply. Qualifying companies have already bought back $609 billion of stock this year, and CNN calculates that these buybacks would have resulted in $6.1 billion in additional taxes. However, they did not outline what effect this would have on companies’ decisions on whether or not to initiate a buyback. Though the White House has suggested that this framework could likely be in the final framework, no firm decision has been reported thus far.
Regardless of how revenue is raised, Biden has failed to answer one central question about his social spending plan: does America need it? With inflation continuing to spike, a growing chorus of economists is calling on the government to reign in the money supply, not “pour gas on the inflation fire.” Similarly, many American companies are still struggling under onerous COVID restrictions, supply chain challenges, and ransomware attacks that the Biden administration has done nothing to stop. Ironically, this bill, aimed to stimulate and grow the economy, would in all likelihood cause a market contraction.
The chaos surrounding the bill’s passage does not reflect well on Democrats. The constant party infighting has revealed that the much-touted, “big tent” of the American left is far more divided and disorganized than previously thought. It has also shown how far Democrats are willing to go to fulfill their social spending priorities. These revelations and continuing questions of the competence and effectiveness of Democratic leadership do not bode well for a party facing a huge midterm cycle next year.
We hope you've enjoyed this article. While you're here, we have a small favor to ask...
Support the AMAC Foundation. Our 501(c)(3) powers the AMAC Foundation’s Social Security Advisory Services. This team of nationally accredited advisors offers on-time, on-the-mark guidance for those approaching or receiving Social Security – at no cost.Donate Now
Let’s Go Brandon
The ” unrealized gains ” is a real beauty for sure, only a democrat would come up with this one…
For example, you are invested in the stock market & in the same year year you have a $4000.00 gain in stock value, you never touch it, tough times hit, you lose the $4000.00 gain in value, basically you are back to where you started from in the first place…The gotcha moment is about to happen, the IRS taxes you on the initial $4000.00 gain, no escaping it…Only in a Biden universe would this be allowed to stand… Well, he was ALLOWED to steal an election, expect to see more insanity coming from this group of nefarious crooks as their just getting warmed up folks…
Just last evening Yellen says & I quote, ” none of this will cause inflation “…Biden says & I quote ” this won’t cost taxpayers a dime “…
Hello, no inflation? Gasoline prices going through the roof, food prices going up, up, up, empty store shelves… I don’t know what planet these people come from, but surely it can’t be planet earth!
Beam me up Scottie, their is no intelligent life down here…
Bill on the Hill… :~)
Actually the wealth tax, which is what the “unrealized capital gains tax” really is, originated in Europe. The Democrats copy all their worst ideas, as socialist around the world are all incapable of innovating anything new. Europe got the idea from the eastern block countries that had their economies run into the ground when the Soviets took over in the 1940’s.
France and several other countries tried it several years back with disastrous results. Not only didn’t the tax yield the revenue the governments wanted, but enforcement and collections was a nightmare logistically. Most truly wealthy people in Europe have a lot of their hard assets in tax friendly countries and things like bank and stock accounts can be transferred in seconds if necessary. Literally overnight, thousands of France’s richest people renounced their citizenship and moved to Switzerland or other more sanely run countries, after buying a new citizenship there. The GDP of these countries that imposed a wealth tax nose-dived, so they all had to do an about face and repeal the wealth tax to prevent total economic failure of their countries. Of course that has never stopped the Democrats from insisting it be tried here.
As for the Yellin quote, you have to remember that she is driven around in a government provided vehicle. So she is NOT herself paying a dime for gasoline or vehicle care and maintenance. She also has a government provided expense account, which at her Cabinet level position, is more than enough to cover all her meals out and other things. So from her perspective, she doesn’t feel any inconvenience from all the price increases. Only “the little people” have to worry about those.
Also don’t forget the wealth tax covers more than just stocks and bonds. The proposed tax would cover your home and all other assets you own. So if you’re in a hot housing market and your home appreciates in value $10,000 a year, which is not unreasonable, you would have to pay tax on that appreciated value too.
When do we get to pay a tax on tax. ???Kyle L.
The country has been doing this for years through the IRS. If you get that refund for overpaying those taxes, that good ole refund gets taxed again by the IRS.
If these people had half a brain they would see they are causing the destruction of this country’s economy. My question is are there any intelligent people in the US Congress today?
the demon rats should can their name to the communist party of America. to all you people who love this party and vote for all their evilness, do not give me your bull shit about how Christian they are or how they love the Jews of the World and Israel. they hate both these groups of people and they want death to them. you are damning your own life here on earth and your soul after you die to hell. I do not have to curse you to hell, you blind and deaf fools are doing it yourselves. and you are making a hell of this world for all people. enjoy your short time here for you will be the ones paying in suffering in end of your story. and all stories end my friend
Joe Hidin’ Biden and his DemoCommmie Party are going to put this Nation in a bind for years to come. They will make the mess, get kciked out of power,… and when the Republicans and Independent Partys try to recover it, the DemoComs will blame them. That’s how many historians analysis seem to see the 1930’s depression era. And don’t be naive about the News Media of this Nation … it promotes Communism in its propaganda role for the DemoComs with a few exceptions.
Many Republicans sit there and do nothing, too. A bill must be passed and the American
tax payers must demand the congress and senate must retire at age 60 ! ! !
And that is too LONG……………
Now Crazy Joe, president of the US of Mexico wants to give $1,000,000 to each illegal.
For their VOTE. He’ll give them nothing. ALL hot air. But they’ll buy into the BS.
The liberal,socialist,marxist democrats are on a revenge agenda,they don’t understand how AMERICANS can believe that PRESIDENT TRUMP had the solutions and they,the densocRATS have not one clue about how the real AMERICANS think,but,I think that the time is coming when they WILL have figure it out.
Again I request that the word “Democratic” not be used to describe Democrats plans. The current Democrats in office don’t seem to know what democracy is and their plans, BBB plans, tax plans, immigrant plans, etc, are not examples of democracy in the United States as was written by our founding fathers–which the Democrats seem to be ignoring. Help!!
Read comments on different forums and you’ll find out Democrats will not last long once confiscation of peoples money starts. It’s called Civil War first you go after politicians that propose such crap as taking peoples money before they sell something then you go after the people that vote for those idiots. The reason they don’t want to teach history in schools anymore is because they don’t want you to know what happens in a Civil War!
The bills MUST BE KILLED ! ANY IDIOT KNOWS that their party has done NOTHING GOOD: for America since JAN 2021!!!! These sick Socialist
– funded politicians will say and do ANYTHING for CONTROL POWER AND MONEY $$$$$$$$ I AM NOT PARANOID ……………..BUT ANY COSTLY TRILLION $$$$$$$ HUGE EXPENDITURES SHOULD BE CAREFULLY WRITTEN IN A BIPARTISAN MODE WHERE AMERICANS CAN TRUST IN THE INTEGRITY AND CONTENT IN A HUGELY EXPENSIVE LEGISLATION !!!!!!
BIDEN AND COMRADES HAVE .PROVEN THEIR POOR DECISION MAKING
,THEIR REFUSAL TO ACKNOWLEDGE OR TO CORRECT ALL THE PROBLEMS US is
FACING AND THEY ARE CLOSE MINDED AND STUPID STUPID STUPID TO THE NTH DEGREE!!!!!……
………………..THIS CORRUPT PARTY WANTS TO BECOME THE ONE AND ONLY PARTY!!!!!! IT’S BLATANTLY OBVIOUS ! ..
I DO NOT WANT TO LIVE IN A SOCIALIST COMMUNIST COUNTRY !!!!!!;, DO YOU ????????
. IF YOU THINK THIS SITUATION IS A JOKE ……………
YOU ARE STUPID !!!!!!!
So are you going to do the two things we all need to do…vote in person Nov 2022 and actually volunteer in the election process?
To MJI. It’s hard for some seniors to stand in lines to vote. Absentee is fine if handled right. No problem whetre I live. Its tjhe mail in ballots that give the trouble. Also you need a valid I D . Not a water bill. Kyle L.
I think gullibility, stupidity, and Ignorance more likely combine to cause many/most people to lapse in to the situationto think it is a joke..
Mr. Biden has a dep monetary connection to China. This may be his marching orders from them.
truer word were never spoken Biden is paying his debt which China I’m sure will never allow him to pay off, the crap they have on Hunter and the money they put up to put him in office are the sharp axe over Joe’s neck
Democrats are communists – and trying to outdo them. When we stop all of the child sacrifice, God would be able to look at us with peace and mercy. If we keep killing and abusing children – He can’t.
Socialism is expensive…
Socialism is death
Every time I think Biden can’t screw us worse-he does it again!! Let’s Go Brandon!!
The Democrats are the best friend the Chinese ever had.
Why wouldn’t they be? After all, both the Democrats and the CCP share the same values and objectives.
And people wonder why this has become my favorite phrase… LET’S GO BRANDON!
Just bought a “Let’s Go Brandon” tee shirt. Love the euphemism!
is this article asserting that the Joe ‘Biden is aiming to get more taxes (not including soaring inflation) that the ChiComs??? That does have a ring (er, gong) of truth to it!