Axios: Changes To Capital Gains Taxes Omitted From Biden’s Infrastructure Plan

BOOM!

This is the realignment in action.

Axios:

“The carried interest loophole is beginning to look immortal.

Driving the news: President Biden today will unveil a $2 trillion infrastructure plan that the White House hopes to pay for via changes to the corporate tax code. But it will not include any changes to individual income taxes, including on capital gains. …

Biden pledged during the campaign to change capital gains taxation, and reports last week were that he would propose that individuals pay ordinary rates on all annual investment income of over $1 million. …”

Forget about a wealth tax.

Forget about raising the capital gains tax.

Forget about raising the corporate rate back to its pre-Trump level.

The SALT deduction that Trump capped might even be coming back.

Joe Biden is the new FDR and his historic presidency is the most progressive administration in history. As Pete Buttigieg said before walking it back, a mileage tax is showing a lot of promise. The “economic royalists” on Wall Street shouldn’t have to pay for anything, right? We can win the 2022 midterms on the strength of “trans women” in women’s sports and a huge amnesty for illegal aliens, right?

About Hunter Wallace 11876 Articles
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4 Comments

  1. The corporate tax increases can and will be passed on to consumers as higher prices. The carried interest loophole will never be repealed.

    It appears that if individual income taxes are increased, the cap on SALT deductions will be repealed. At most, we will go back to Obama era income tax rates.

    A wealth tax is not going to happen. Increasing the cap on Social Security taxes is very unlikely. Any changes to how capital gains are taxed is unlikely.

    To summarize, there will be a middle class tax increase in the form of higher prices disguised as a corporate tax increase, perhaps a small increase in income taxes on the upper and upper middle class, likely canceled out by the repeal of the cap on SALT deductions, and no significant tax increases on our overlords. Business as usual in Weimerica.

  2. Sometimes your sense of humor is so subtle that it’s almost undetectable, HW.

    It will probably cost about $3 trillion to thoroughly rebuild and update our infrastructure. I’m no economist but I don’t see how raising the capital gains tax is going to pay for that.

  3. All of this talk, talk, talk about SALT, infrastructure spending, taxes, capital gains etc. presupposes that the “economy”, such as it is and the financial system (a collection of rackets) will continue to function as it has since 2008. The financial system is premised upon ever increasing debts that get perpetually rolled over, getting paid back in inflated dollars. This requires that interest rates remain low. Low interest rates impede private capital formation so the Government i.e. the Treasury and Fed must provide the capital to keep financial markets functioning.

    All of this fails if interest rates rise as they have been rising so far this year. Interest rates higher than %2 on ten year Treasuries will start to make investing money in Treasuries more profitable than gambling in the stock market. Another crash in the stock market will imperil the financial system itself because the debt backing the speculation in stocks now becomes unpayable, the stock’s value itself providing the collateral for stock loans.

    Another crash in the stock market will create a vicious circle of panic selling and defaults in other markets as confidence evaporates and interest rates rise. The problem now is that ten year Treasuries are rising because of inflation caused by massive money printing, not Government policies. This indicates that the Fed and Treasury are starting to lose control. It seems unlikely that Dementia Joe and his ugly girlfriend, President Kuntmala Harris can go on TV in the middle of a crisis, give a speech and instill confidence back in anyone.

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