On Sunday, the 63rd Annual Grammy Awards took place as pop culture elites patted themselves on the backs wearing their $5,000 stylized masks that matched their $20,000 outfits. The Twitter algorithm completely saturated the trending section for nearly 48 hours with Grammy subjects after the award show had ended. This was in spite of the fact that viewership of the event plummeted by over 50%.
Nevertheless, "Music's Biggest Night" served as the perfect distraction as the Biden administration's tax plan was announced. According to Bloomberg, President Joe Biden is planning the largest federal tax hike since 1993.
Since the beginning of the lockdowns in March of 2020, the United States has printed and borrowed historical amounts of money. In total, over $6 trillion has been printed in the name of COVID-19 "relief" in only a year. However, actual relief was the last thing Americans received despite the government printing enough money to give every single American taxpayer $41,870.
Government spending has reached historical levels and the already-unsustainable nature of such irresponsible fiscal policy has been fast tracked to complete meltdown. So, the feds are coming after more of your paycheck.
"Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won't rely just on government debt as a funding source," report Nancy Cook and Laura Davison of Bloomberg.
While it's been increasingly clear that tax hikes will be a component—Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates—key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners….
For the Biden administration, the planned changes are an opportunity not just to fund key initiatives like infrastructure, climate and expanded help for poorer Americans, but also to address what Democrats argue are inequities in the tax system itself. The plan will test both Biden's capacity to woo Republicans and Democrats' ability to remain unified.
“His whole outlook has always been that Americans believe tax policy needs to be fair, and he has viewed all of his policy options through that lens,” said Sarah Bianchi, head of U.S. public policy at Evercore ISI and a former economic aide to Biden. “That is why the focus is on addressing the unequal treatment between work and wealth.”
The tax hikes will come in a myriad of forms that don't just attack the wealthy like the plan proposed by Elizabeth Warren. Instead, Biden's plan is multi-faceted and rewrites many parts of the already massive tax code.
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According to Bloomberg, the following are among proposals currently planned or under consideration, according to the people, who asked not to be named as the discussions are private:
- Repealing the Trump administration's 2017 tax breaks
- Raising the corporate tax rate to 28% from 21%
- Paring back tax preferences for so-called pass-through businesses, such as limited-liability companies or partnerships
- Raising the income tax rate on individuals earning more than $400,000
- Expanding the estate tax’s reach
- A higher capital-gains tax rate for individuals earning at least $1 million annually. (Biden on the campaign trail proposed applying income-tax rates, which would be higher)
Though no plans have been finalized, the outlook is not so bright as the Federal government attempts to fund its continued promises of "free money" and perpetual war. This plan, according to Bloomberg, has analysts penciling in $2 trillion to $4 trillion and the White House said the plan would follow the signing of the Covid-19 relief bill.
"An outstanding question for Democrats is which parts of the package need to be funded" by higher taxes, write Cook and Davison. "Efforts to make the expanded child tax credit in the pandemic-aid bill permanent—something with a price tag estimated at more than $1 trillion over a decade—could be harder to sell if pitched as entirely debt-financed."
Sadly, confused souls across the planet still think they need to be extorted by government — that often pays 1000 times more for labor and materials — to have things like roads.
But government does not build roads, private companies do. The government simply steals money from you and then pays private contractors to do the work. Certainly after thousands of years of civilization, humans can figure out how to build roads without stealing from one another, right?
Similarly, the wealthiest country on the planet could also help those in need without robbing Peter to pay Paul, right?
If politicians actually cared about the wellbeing of the American people, they'd end the forever wars across the world, bring home all the troops, and save a trillion a year doing so. But the reality of the situation is that they do not care, so our children, grandchildren, and great-grandchildren are perpetually driven into further debt so that blowhards in DC can continue to convince people that government is necessary.