So earlier today Biden has indicated an increase to the capital gains tax on the “wealthy”. Oh come on, really? Are you sure it’s only going to be on the “wealthy”? We shall see in practice is this gets pushed through and passes through Congress – if they still going through passing legislature in Congress.
With the amount of Executive Orders Biden has signed, I cannot keep up nor how many has been signed already.
So here’s a thought that just came to my mind as I watched the video above via Bloomberg Quicktake’s Tweet… If they supposedly state that Biden will raise the tax on the wealthy and not increase the taxes on the individuals / families making less than $400,00… To me I see it as a double edge sword. How so? Let me think out loud here…
Taxes increase on the wealthy who make $400,000 and more ~ Of course the wealthy can afford anything even some middle class persons if knowledgeable enough and well connected to seek out financial advice to see how to lower their taxes overall. Example if I’m going to make big bucks – I would see what’s out there financial planning wise to lower what I would owe in taxes so I can be able to have more disposable income (more money to spend on whatever I choose to). I mean lots of investment income encompasses investment losses. So I’m sure plenty of financial savvy folks will utilize investment losses to lessen or lower their tax rates in response to this.
Or if anything, the people who financially proficient will probably just pack up and leave… then who then will the Federal Government go after to tax to get money into the big government…? The people next down – making less than the “wealthy”. As I heard the phrase before – “shit rolls downhill”.
Have to reference back to my previous blog because this really does relate to what our President is doing now: Tax Rates – The Laffer Curve