(SB) - Do you remember the promise from President Biden that he would not raise taxes on anyone with an income of less than $400,000? His new budget belies that promise. His 2025 budget recently released raises taxes to $5 trillion over ten years. I do not believe that voters gave Biden this permission during the election of 2020. A recent commentator called this “ruling by government fiat.”
Of most interest to my readers might be that Biden is allowing the $2 trillion Trump middle-class tax cuts to expire. Yet he includes money for “new” programs for lower to middle-income Americans. This is obviously a redistribution of the income from those who work for a living to those who do not. Today that would include non-citizens, which we now know includes over 10 million illegal immigrants.
Would you like to know how this budget increases the IRS? In addition to the $80 billion for the IRS in the 2022 budget, the Biden budget adds $104.3 billion in mandatory funding. In 2021, former IRS Commissioner John Koskinen, an appointee of President Obama said of the surge: “I’m not sure you’d be able to efficiently use that much money. That is a lot of money.” How much more waste will occur with $104.3 billion in mandatory spending? By the way, why would President Biden demand $104.3 billion be mandatory spending?
Last year 63 percent of the audits were on people earning less than $200,000. With that additional funding, who do you think they are going to target? There are not enough people in the top 1 percent tax bracket to even pay for that increased funding much less bring in extra revenue to pay for his budget expenditures. In case that is not bad enough news for you, there is a renewed push to tax income before it is earned, imputed taxes i.e. income credited to you but not yet received.
You may remember this idea was brought up under the Obama administration. Democrats have designs on every dollar you make. This is how it works.
If a founder of a publicly traded company who holds his wealth in 40 percent share of the company stock, currently valued at $100,000, were to double in a year, this person could owe 25 percent tax on the $100,000 appreciation on his shares in the company even though he did not sell the stock. The $25,000 he owes could cause him to sell a good portion of his stock to pay the taxes.
This large sale would damage the company’s ability to raise additional equity because the company would be worth less. This is absurd. This is a radical seizure of that person’s private property. This is only the beginning.
In addition to these tax increases, Biden plans to move the top tax rates above the international norms, which has the risk of losing our competitiveness with other countries and diminishing our economic growth. According to Reuters, “the top income rate on individual income would rise to 45.4 %, the top rate on capital gains income would increase to 49.8%. and the top rate on corporate income would grow to 32.2%. The combined integrated rate on corporate income would rise to an astonishing 66.0%.” Does this bother you?
This does not even include the effect of illegal payment of millions of Americans’ student debt. The Supreme Court of the United States has deemed Biden’s actions in loan debt removal as unconstitutional. He is leading us into socialism where the government owns everything including the means of production, the compensation for the workers blood, sweat and tears, where we live, what if anything we can own, and control every aspect of our lives. Is this the America you want to leave for your children and grandchildren?
This next election will determine if we remain a Republic or a socialist nation. This is our last call to preserve the legacy our founding fathers left for us to enjoy.
