Bidenís* "Wealth Tax Plan"
Now, the Socialist puppeteers pulling the strings on Joe Biden*are pushing for a tax on money that you and I do not even have. The Socialists call it a "wealth tax" on billionaires; however, even 700 of Americaís top billionaires do not have enough "wealth" to cover the cost of Bidenís* $3.5 trillion-dollar, social-infrastructure legislation. That means, the pool of "wealthy taxpayers" would have to be ever expanded to include your 401K, mutual funds, and even the "assessed" value of your home.
By the way, should Bidenís* "wealth tax" plan become law, do not go on "Antiques Road Show" with a painting you bought for $10 bucks at a garage sale that turns out to be a lost work of art worth millions. The IRS would be on you in a New York minute and you might have to sell your home to pay the "wealth tax." That already happens sometimes with the "death tax" that causes farm or ranch family heirs to have to sell the farm or ranch to pay the "death taxes" when Mom and Pop are gone.
Another example: You buy stock in the XYZ Company for $10 bucks. You hold it for two years and the stock is worth $20 bucks. You have not earned $10 bucks in "income." The $10 bucks are an "unrealized asset." In fact, if the stock goes down you may never "realize" your $10 bucks, but the Biden Regency* will have already taken its pound of flesh from an asset you no longer have. You wuz robbed!
Look, you paid taxes on the $10 bucks you used to buy the stock. You will pay a capital-gains tax should you sell it. So, you are already going to be double-taxed. But, in the meantime, the Biden Regency* makes off with part of your "unrealized asset." That is not taxation that is "confiscation," pure and simple.
If allowed to become law, these confiscations will collapse the stock market, the housing market, and the fine-arts market all in one fell swoop. Markets abhor uncertainty and what could be more uncertain than "unrealized assets."
Thatís the bad news. The good news is the U.S. Constitution and the 16th Amendment only mention "income" as being taxable. Unless the U.S. Supreme Court (SCOTUS) goes AWOL again, the SCOTUS should hold that "unrealized assets" are not "income."
But the proposal to tax "unrealized assets" is just a smokescreen. The real objective of the Biden Regency* is to build public support for packing the SCOTUS with liberal justices. Bidenís* $3.5 trillion-dollar pork-laden, bread and circuses, social-welfare bill is very popular with a demos that thinks it can get "free everything" and have you and me, who are far, far from being even millionaires, to pay for it all.
If the SCOTUS rules against these cockamamie schemes and rioting folks donít get their free phones and...stuff, pressure will build on Congress to allow Biden* to pack the SCOTUS with justices who will vote for more taxes (actually, confiscations) to help pay for more "free stuff." We report. Consider voting next November.
* Election increasingly disputed.
** Regency: When someone governs in place of another.
Quotable quote: "The only difference between death and taxes is that death does not get worse every time Congress meets," Will Rogers.
©2021. William Hamilton.