Biden's 'Tax the Rich' Plan Is Pure Socialism
By Trish Regan
President Joe Biden has been in the White House now for 100 days... 100 days of inching toward a new system of government... 100 days of setting the stage for a new Socialist order.
Can you imagine what the next 100 days will be like?
Buckle up, America... If President Biden gets any of his Socialist nonsense through, we won't have much of a country left.
And believe me – he's trying.
"America is ready for a takeoff," he told viewers Wednesday night in his first address to a joint session of the Congress as president. He tried to sound hopeful... But you can't help but wonder if his policies are instead sending us straight for a crash landing... for those of us that are capitalists, anyway.
You see, President Biden wants to massively take (you might even call it "steal") from those who work and earn, and redistribute that wealth to those that do not earn.
He wants to take the profits from those that risk their money in the markets and redistribute the gains to those who don't take those chances.
He wants the IRS to target high-earners who he believes may be shielding their income via tax loopholes – despite his own use of Barack Obama's tax loopholes to protect his some-$13.8 million income during 2017 and 2018. Indeed, during those years, the president and Jill Biden employed some creative accounting techniques enabling them to keep $500,000-plus that would otherwise have gone to Uncle Sam.
You know what they say... "Tax savings for ME, but not for THEE."
The entire effort is ambitious, preposterous, and flat-out dangerous. If successful, the government would be responsible for picking winners and losers in industries and personal lives. The government will yield all power – a departure from the small-government intended by our founding fathers.
Make no mistake... Biden and his team want to create a dependent class of Americans – addicted to government spending and addicted to the Democrat party. In doing so, they will keep themselves in power.
The Numbers: Read Them and Wince
We're talking about some real numbers here... It's so much money that it's easy to forget how much we're really talking about, but this is the most massive amount of spending ever proposed.
His new plan includes the $2.3 trillion infrastructure package that encompasses not only new spending on bridges, roads, and broadband Internet... but $1 trillion in social spending including:
- $225 billion for a national paid family and medical leave program
- $200 billion for free universal preschool for 3- and 4-year-olds
- $225 billion for childcare programs
- $109 billion for two years free community college
- $80 billion in Pell Grants for college
- $46 billion for historically Black colleges and minority-serving institutions
- $25 billion for food assistance, including $17 billion in free meals for children in poor districts, $2 billion investment in nutrition, and $1 billion to help public schools offer healthy food
Are you kidding me?
Don't we have a lot of these things in place already – and if they're not working, why would we dump more money into them?
From yesterday's Wall Street Journal editorial board piece,
One question to ask is: Haven't we tried this before? What is Head Start if not government pre-school education and childcare? Weren't school lunches and the Women, Infants and Children program supposed to prevent child hunger? Food stamps, welfare checks, child-care subsidies, and a supplement to earned income plus public housing. Weren't all of these programs and more from previous decades supposed to end poverty?
Did the trillions of dollars spent on those programs fail? And if they didn't work, why do we need more?
Great questions... And the short answer is, we don't need more... They failed because the government is too big and too bloated, and handouts don't actually result in meaningful changes in behavior.
We have real issues – in some cases related to crime and the family structure – that will not be solved via checks from Uncle Sam.
Plus, let's get real... We don't have the money to pay for this anyway.
'Tax the Rich!'
Typically, when ambitious Leftist politicians want to recreate the world into a Socialist, power-hungry, authoritarian state designed to help themselves and their party, they go back to the well of class warfare and demand that the reason some people in life have not succeeded is the fault of those that have.
The "solution" from this class of politicians is therefore always, Tax the rich! Who cares if they suffer? They don't "deserve" the money they earned anyway. After all, as President Obama (whose economic policy feels almost quaint in light of the Biden team's efforts) once infamously said, "You didn't build that," when referring to the businesses that small and large business owners built.
There's a serious resentment from the Left directed at businesses, investments, and earnings. They want that money to go to Uncle Sam... or in this case, Uncle Joe.
What they continually fail to comprehend, however, is the reality that if you penalize businesses and earners, they won't care to earn or work as hard. And then, revenue will go down.
It's like my longtime friend and economist Art Laffer so brilliantly demonstrated to President Reagan on a napkin many years ago – by CUTTING tax rates, the government will secure more tax revenue because growth will be that much stronger. When the Trump administration cut taxes, federal tax revenue soared to the highest level ever recorded (this was, of course, pre-COVID).
Meanwhile, it's not just business taxes they want to raise, it's not just income taxes that they want to raise... The Biden team wants to tax your investments as well, courtesy of a massive increase in capital gains between 39.6% and 43.4%!
Frankly, it's moronic.
And the Biden administration argues it will only affect those earning more than $1 million a year. Now that's what you call false advertising. The truth is, the increase will affect EVERYONE since it will suck money out of the markets and the economy.
Investment banking company UBS has predicted that it could knock 7% off market valuations, and I'd argue it could be even more. What Biden isn't telling America is that by depressing investments in U.S. equities, firefighters, teachers, and police will all be affected – actually anyone who has money in a retirement fund!
When money comes out, the market goes down.
But I'd argue there's a sinister method to the Biden madness... Biden's team doesn't really care if markets go up or if the economy succeeds. Instead, they wish to create a dependent class of Americans in need of government help. And if they're successful in achieving some of these policy goals, they will destroy the American economy and American lifestyle as we know it.
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