President Joe Biden delivers remarks on the 100th anniversary of the Tulsa Massacre Tuesday, June 1, 2021, at the Greenwood Cultural Center in Tulsa, Oklahoma. (Official White House Photo by Adam Schultz)
Joe Biden, and the progressives who run his administration, are proposing taxation on Americans unlike anything seen since the last World War. Jay Starkman explains in The Wall Street Journal:
The Biden administration proposes to raise the top individual rate to 39.6% (plus 3.8%) and to 28% for corporations
Some of the most burdensome proposals include imposing the 12.4% Social Security tax on earned income over $400,000 and nearly doubling the top rate on long-term capital gains, to 39.6%.
Including the 3.8% net investment income tax—extended by ObamaCare—results in a top rate of 54.9% on earned income and 43.4% on income from investment and savings.
Add 13.3% state tax in California or 14.776% in New York City, and the marginal tax can hit somewhere between 56.7% and 69.8%.
Additional proposals to limit the value of itemized deductions, including charitable contributions, would raise effective taxes even higher. Unless indexed for inflation, these high tax rates would over time ensnare an ever larger proportion of taxpayers.
Proposals to tax “step-up basis” could result in a 68.9% combined capital gains rate plus estate tax on many successful investors, entrepreneurs and small-business owners.
Estates of New York City residents would be subject to an additional 14.776% income and 16% estate tax, for a total tax of 80.7%.
Few small businesses or farms could survive these proposed taxes.
Assets would need to be sold to raise the cash to pay the tax. Jobs would be lost to liquidations.
Many retirement plans and family assets would have to be zeroed out. Tax is generally due in cash nine months after death.
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