The rich already pay 37% on ordinary income and 23.8% on capital gains. Will this Biden tax idea replace the existing rates with a 20% rate? That would be a tax cut for the rich. Something democrats have been against like since forever.
Or is the Biden 20% a surcharge on the existing rates, which would jack the 37% on ordinary income up to 57%, very steep even for a George Soros. And the 23.8% capital gains rate would become 43.8%, also very very stiff.
Worse, the Biden tax hike would tax “unrealized income” the increase in value of your stocks and bonds and fine art and real estate, and everything. To collect this everybody would be required to tell the government how much stuff they own, on April 15 every year. Doing income tax has gotten so bad that I now have to use TurboTax. It would be twice as bad if I had to list everything I owned ever April 15.
Plus there is serious difficulty in determining the increase in value of things that don’t get traded all that often like New York Skyscrapers or fine art or fancy cars. That will create a lot of welfare for lawyers.
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