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One staple of legal philosophy is the prohibition against retroactive laws. The late legal theorist Lon Fuller spared no anger in denouncing these laws as “monstrous,” because “to speak of governing or directing conduct today by rules that will be enacted tomorrow is to talk in blank prose.”
Nonetheless, large governments are often hard-pressed to fund their ambitious spending programs. And so the Biden administration proposes to increase the capital-gains top rate from 23.8 percent to 43.4 percent to pay for its $6 trillion American Families Plan, which includes about $1.8 trillion for child care, education, and paid employee leave. But as its Treasury Report makes clear, it fears that the steep capital-gains rate increase will induce massive selling before the effective date of the statute in 2022. It, therefore, proposes an unprecedented step of imposing the higher capital-gains rate on any transaction that took place after late April, when that tax hike was first proposed.
But Treasury misfires badly. Sales of capital assets are good for the economy because they allow individuals to shift from weaker to stronger investments. The inefficiency comes from forcing premature transfers. Yet the massive rate increase proves that high rates, even when applied on a prospective basis, will distort the allocation of capital, depress overall share prices, and ensure that the new tax will fall short of its revenue goals, which are better achieved through durable tax cuts. But the Biden administration plainly ignores these drawbacks for long-term wealth creation in its relentless request for revenue today.
Those of us who were done with college, starting careers, trying to buy homes (and gas) during the late 1970s and early 1980s know what inflation is. If you’re under 50, especially under 40 years of age, you have no clue. With all due respect. Let me put it in perspective. A $100,000, 30-year mortgage […]
I was going through news items this morning when I spotted this: https://www.self.inc/info/life-of-tax/ Preview Open
My wife became a US citizen 14 years ago. She did it on her own hook, after being in the US for 25 years, not because she married me. But now she tells me she’s beginning to regret becoming a citizen because of all the nonsense we are seeing now.
Yes, racial relations are getting worse and worse and the situation is being driven by race mongers and seditionist leftists. Yes, the libs are threatening to tax us and take the money in our IRA’s and 401ks. Yes, an increase in inflation is threatening to destroy our retirement savings. Yes, inflation is increasing. Yes, corporations will pay higher taxes, and we will pay more for goods and services as a result. Yes, people are losing their jobs and status for speaking their minds. Yes, we are set to waste trillions on the phantom of climate change. Yes, crime is on the rise even as leftists are calling to abolish the police. Yes, we have seen continuous rioting, vandalism, and violence in our cities. Yes, anti-white racism in on display everywhere. Yes, there is an open season on American Jews. But not to worry, I say. The US has seen worse.
Join Jim and Greg as they dissect President Biden’s attempt to put a fresh coat of paint on the same old agenda Democrats have been pushing for decades, including his push for massive tax hikes and insistence that his gun control agenda is compliant with the second amendment. They also cheer Tim Scott for a terrific GOP response, in which he blew up several false narratives from Democrats and pushed for critical items like school choice. And they hammer media outlets of both political persuasions for publishing stories that didn’t have all the facts right and for catering to favored politicians.
Who didn’t see this headline from Bloomberg Wealth coming? “Rich Americans Who Were Warned on Taxes Hunt for Ways Around Them.” I suspect most of these people not only voted for Joe Biden, but many of them have also contributed mightily to his campaign and are still happy to have done so. Preview Open
We haven’t seen details of President Biden’s “Made in America Tax Plan.” It’s designed to pay for his $2 trillion “infrastructure” plan. All we have is an 18-page description published by the Department of the Treasury. But it’s a good guess that we will get all the details when the White House finally sends its FY2022 budget and supporting materials to Congress, likely after he finally delivers his first State of the Union (SOTU) address before a Joint Session of Congress on April 28, right before his 100th day in Congress. That’s a popular but meaningless benchmark that journalists like to write about.
But one needs to go back to the 2020 campaign and read or hear what then-candidate Biden promised as part of his tax plan. We know that he promised to repeal the “Trump Tax Cuts” that lowered tax rates for everyone and really lowered corporate income tax rates from the world-highest 35% to 21%. Biden also promised not to raise taxes on incomes of less than $400,000 per year.
Chevy Chase, MD, is an affluent suburb of Washington DC. Median household income is over $250K, and a significant percentage of households have incomes that are much, much higher. The area includes many high-end stores and restaurants. PowerLine observed in 2009 that during the 2008 election season, yards in Chevy Chase were thick with Obama […]
April showers bring…more than just May Flowers. April is a month many people love to hate, because it brings Taxes. I seem to remember, from the Christmas story, that Joseph and Mary had to go to Bethlehem because the Romans declared that all the world “should be taxed”, and the rule was that everyone had […]
Tuesday’s big headline in the financial world is that the world’s richest man, Amazon founder and CEO Jeff Bezos – also the owner of the Washington Post and Whole Foods, supports higher taxes in Joe Biden’s “infrastructure” plan (although he does want bipartisanship “concessions” – on the details). Good luck with that, in the Schumer-led […]
Jim and Greg enthusiastically welcome polling showing 75 percent of likely voters think presenting a photo ID should be required to cast a ballot. They also hammer Joe Biden for going back on his guarantee that “anybody” making less than $400,000 per year would not get a tax increase while he’s in the White House. And they blast White House Press Secretary Jen Psaki for saying there’s “no question” that President Trump calling COVID the China virus is contributing to an increase in violence on Americans of Asian descent, including the recent murders in Atlanta.
Join Jim and Greg as they marvel at some Democrats conveniently worrying about our massive debt just one day after passing a bloated COVID relief bill totaling $1.9 trillion and eyeing an even more expensive bill in a couple of months. They also discuss the sixth allegation of sexual harassment against New York Gov. Andrew Cuomo and when state Democrats will move from muttering things about resignation to an actual impeachment effort. And they discuss the mess at the southern border thanks to Biden’s deportation moratorium and stated plans of a pathway to citizenship for illegal immigrants.
Host Joe Selvaggi talks with Stanford University Economics Professor Joshua Rauh about his research on the reaction of Californians to a tax increase, from his report, “The Behavioral Response to State Income Taxation of High Earners, Evidence from California.” Prof. Rauh shares how his research offers tax policy makers insight into the likely effects of similar increases in their own states, including here in Massachusetts.
Julio Gonzales, CEO of Engineered Tax Services and national tax expert who helped advise on the 2017 Tax Cuts and Jobs Act joins Carol Roth to discuss the fallout on small business and the economy from 2020 and what to expect under a Biden administration. Julio and Carol also discuss some surprise places where individuals and business owners can turn for financial assistance, and the importance of advocating for yourself with your elected officials.
Plus, a “Now You Know” on an underused tax break.
2020 was a bad year for California, and worse if you were a resident of the state. California initiated a lockdown due to Covid-19 on March 20, 2020. At the time, Field Marshall Gavin said “…We project that roughly 56% of our state’s population — 25.5 million people will be infected with the virus over […]
“We have to pass the bill,” she said, “so that you can find out what is in it — away from the fog of the controversy.” Nancy Pelosi on the Affordable Care Act, March 2017. Apparently, they’re still doing it, except there’s still fog and controversy.
Do you know what is in this bill? In case anyone in government is wondering why Americans are so angry and disjointed, why our politics are so far apart, you need go no further than the latest tax-payer debacle that’s called the 2.5 Trillion Dollar Covid Relief Bill. Why are these huge spending bills always rushed through, in the dead of night, or over a holiday week? The almost 6,000-page bill was passed along for a vote that left most unable to fully read it.
Join Jim and Greg as they fume over the obscene process by which Congress shoveled a lot of wasteful spending into the combined omnibus and COVID relief spending bill that will do some good for small businesses. But while disgusted with the process, they are excited about the doubled tax deduction for three martini lunches! And they address comments from Die Hard director John McTiernan that the film is anti-capitalist, but they just might veer off into other aspects of this cinematic masterpiece.
Join Jim and Greg as they discuss confirmation that a federal prosecutor is investigating Hunter Biden on tax issues, his foreign ties, and possible money laundering. They also sigh at the revelations of China’s efforts to infiltrate the inner circles of politicians supposedly on the rise, and how easily multiple figures seem to have fallen for it. And they react to reports that Sen. Dianne Feinstein is suffering from cognitive decline but find the timing awfully convenient for the far left.