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
A very good interview with American Economist, Mr. Thomas Sowell. He’s born in the 1930’s and he’s well in his 80’s today. Still a very intelligent and a wonderful individual. This is one of many interviews I have seen of Mr. Thomas Sowell. He is truly a gem for this period, among others of course.
He has argued that it is a propaganda tactic akin to those used by Joseph Goebbels because it comes with an attitude that it must be “repeated long enough and loud enough” till it is believed and people “cave in” to it (Wikipedia).
He does make a valid point.
It doesn’t matter what kind of business you operate or if you’re just an employee for a company… Under the progressive tax system, the more money that you make, the higher tax bracket you’ll be put in and more taxes you’ll pay out of your own pocket.
Obviously, the higher tax bracket you start being into, you find ways to lower your taxes or you just work less.
This adds on to what one of John Stossel’s videos mentioned, the higher the taxes there is imposed – the wealthy or big businesses making big bucks find ways to lessen their taxable income (e.g. work less hours) or move their business outside were they can utilize favorable tax incentives, etc.
Concept of basic Economics of “Cause and effect.”