President Biden’s addiction to economy-killing taxes remains intense, as a new idea in his proposed budget unfortunately confirms.
Biden’s latest scheme would hit rich people with a 20% minimum tax on both income and unrealized capital gains. Democrats figure that since the well-to-do aren’t popular, the tax idea would give beleaguered Democratic candidates a winning issue for the fall elections.
This segment of What’s Ahead explains why Biden’s ploy will fail politically and economically. Slamming rich people won’t fool voters into overlooking the damage that inflation is inflicting on their living standards.
The tax itself would destroy capital, that is, money to invest in economic growth and greater opportunities for people to get ahead. What class warriors refuse to acknowledge is that without investments in starting new businesses, expanding existing ones, generating productivity and funding research and development, the economy stagnates. Period.
The tax would also be an administrative nightmare.