The Implications of Biden’s Tax Increases Upon Reelection: Owning Less, Paying More

Donald Trump has revealed his proposals for federal taxation if elected.

“I will make the Trump tax cuts permanent. You know they expire in a year. And we will cut your taxes even more than that,” he stated in a speech in North Charleston, South Carolina, on February 14, 2024.

Trump established a clear direction for taxes. Down. Lower. Less.

But President Joe Biden has made it obvious that he intends to hit Americans with a $5 trillion tax increase. And yes, it will affect you.

Biden’s stated plan calls for a small business tax increase, a corporate tax increase, a capital gains and profits tax increase, income tax increases, energy tax increases, and even an additional death tax on top of the first.

Biden proposes increasing the corporate income tax from 21% to 28%. That is higher than the tax rates in communist China, France, and the United Kingdom, which are all 25%.

Folks, corporations don’t pay taxes; consumers do. Politicians in DC know this. There’s a safe bet that even Joe Biden knows this. When corporations get tax increases, they pass the difference on to consumers, either at higher prices for their products and services, by cutting back on quality to save costs, or wage growth takes a hit. Either way, a corporation can’t lose profits because they will go out of business.

Add the average state corporate income tax of 4%, and the average combined Biden rate will be 32%. This would be the second-highest corporate income tax in the world’s developed nations, just shy of Colombia.

Biden also vows to raise the tax rate on Subchapter S corporations, partnerships, and all “pass through” businesses, the majority of which are small businesses, to 39.6%. These employers pay taxes at the personal income tax rate, not the corporate rate.

Biden’s budget proposes raising the federal capital gains tax to 44.6%, the highest rate in 100 years.

California corporations would pay 44.6% federal capital gains tax plus 14.4% state capital gains tax, for a total rate of 59%. Businesses in New York State would pay a combined capital gains tax of 53.4%.

Meanwhile, the developed-world average is 18.78%. China’s is 20%.

What’s worse is that the Biden people are talking about a wealth tax. What this means is that if you bought your house at $300,000 and now a few years later it’s worth $500,000, Joe Biden wants to tax you 44% of the $200,000 you have earned from the value of your house going up. Biden doesn’t care that you haven’t realized that money in the gain yet. Every year, you will pay 44%, or $88,000, in taxes on your home. Most Americans could never afford that, so the Great Reset plan is to have rich people step in and purchase your home from you and then lease it back to you. I think the Great Reset phrase goes, “You will own nothing, and you will be happy.”

So, when you have not sold your property to realize the gain, you will still have to pay taxes on the gains each and every year. And if the value of your home goes down for some reason, you will not get any money back from the taxes you paid. It is the opposite of the American dream.

If the wealth tax gets passed and signed into law, everyone reading this can kiss their homes and other assets goodbye. But it’s not just homes and other properties. If you own stocks, crypto, or any investing vehicle that earns a capital gain, you will be forced to pay the taxes on that gain each and every year even though you have not yet realized the money.

The goal of the communists is to get people to sell off their properties, so that they can become slaves of the rich elitists.

And don’t worry. If you do sell your house after a few years of paying a wealth tax, they will still tax you on the capital gain of the sale of your home.

Under Biden, you may work for 40 years, sell your company, and the government would take half or more.

Biden wants to add a second death tax by getting rid of the stepped-up basis when parents die and their children inherit their homes, land, and stocks.

Biden plans to charge a tax on “unrealized gains.” If the value of your land or stock account has increased in the past year, you will be taxed on the unrealized gain. You have not sold the property, so you do not have an income. It’s not “real.” However, you will be taxed as if you made the sale and got the income.

Big government officials have a history of pushing “trickle down taxation,” in which a tax is touted to solely affect “the rich.” They lie in order to pass the tax into law. Once implemented, the tax gradually increases to target the middle class.

Consider the federal income tax. When it began in 1913, the maximum rate was 7%, and it only applied to households earning more than $15.8 million in today’s currency. Currently, approximately half of the country is subject to income tax, with the lowest rate at 10%.

Another example is the “Alternative Minimum Tax” enacted in 1969. It was only expected to affect 155 high-income households countrywide. But that is not what happened. The tax gradually increased, threatening 30 million households by the early 2000s.

Biden is already utilizing “trickle down taxation” to impose a stock tax on an increasing number of Americans. Biden signed legislation imposing a 1% tax on firms that buy their own stock. If you have a 401(k) through your company, a separate IRA, or even a union pension, guess what? You will be taxed on those, too. Biden now wants to raise it from 1% to 4%! That would be a 4–% tax increase over three years. WTF? And 4% would just be the beginning.

Biden is also giving up America’s tax sovereignty. He has embraced our European competitors’ demand that we establish a floor for our corporate income tax rate. Europe is aware that Trump has long lobbied for a 15% corporate income tax.

But Trump has made it clear that he wants to compete with other countries by delivering lower taxes to American workers, not by paying them less. Biden has embraced the idea of a government tax cartel, an OPEC, with tax rates no lower than 15%, and he now asks that the minimum tax be raised to 21%.

Biden’s budget proposes a levy on energy spent on activities that Biden dislikes. Start with bitcoin mining. Once established, the list of future targets becomes self-explanatory: gas stoves, gun manufacturers, gas stove manufacturers, conservative social media companies, etc.

In terms of energy taxes, keep an eye out for a carbon tax during Biden’s second term.

Biden, Vice President Kamala Harris, Treasury Secretary Janet Yellen, and Transportation Secretary Pete Buttigieg have all supported an energy/carbon tax. All but ten Democrats in the House voted against a resolution against a carbon price this spring.

And all of these new Biden taxes will be levied by an overburdened and unreformed IRS.

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