What would happen if Biden got the tax hikes he seeks? A big set of questions and answers follows.
Net Capital Gains Tax Would Approach a Whopping 60%
As I noted on April 23, under Biden’s proposal Net Capital Gains Tax Would Approach a Whopping 60%.
Four Comments By Shortsighted Readers
- I’ll complain when I’m the one being taxed.
- Mish, tell me if it impacts someone with $60K in annual income and $12K in short-term capital gains. If it doesn’t, go screw yourself!
- Great if the plan is passed! Party time for the Top .3% is over!
- Why should investment be advantaged over labor?
The first two comments above remind me of (fill in your own blanks: They came for the ______ and I did not speak up. Then they came for the _____ and I did not speak up. Then they came for me and _____.
Let’s Play Tax Q&A
Q: Put a 60% tax on capital investments and what happens to investment?
A: Investment in new businesses will plunge.
Q: Put huge taxes at the state level and what do people do?
A: They move.
Q: What happens to neighborhoods, even states, when the wealthy flee?
A: Think Illinois
It is not the poor who invest in new businesses. And at a 60% tax rate it will not be the wealthy either!
Bonus Question: Who said this?
“The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital from static to more dynamic situations, the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth of the economy.”
If you guessed Ronald Reagan, try again. In fact, if you did not know the answer, I doubt it would be one of your top 5 guesses. – READ MORE
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