I wouldn’t blame you if you haven’t been watching the recent political wrangling over the administration’s “Build Back Better”
social spending human infrastructure plan.
It’s painful to watch Congress intentionally try to bury our economy in a black hole of debt.
At one point the issue of how to pay for this boondoggle came up.
In one response, the Senate Finance Committee (with a little help from the Treasury Department and the White House) offered something called the “Billionaire Income Tax.”
To any mere mortal working to make a living, taxing billionaires doesn’t sound objectionable.
But the idea behind it is pretty insane.
Because It’s a Wealth Tax
The government’s plan would levy taxes on unrealized gains. Without getting too deep into the weeds, that means these uber-rich investors would be taxed on the appreciation of assets they owned. If their stock portfolio increased in value by $10 million, they’d be on the hook for that as income, even if they didn’t cash in those profits.
Which is effectively the same as a “wealth tax.”
Treasury Secretary Janet Yellen said, “It’s not a wealth tax, but a tax on unrealized capital gains of exceptionally wealthy individuals.”
(It’s a wealth tax.)
Notwithstanding it’s enormous stupidity, the exceptionally wealthy, naturally, pushed back. It was so stupid that even members of their own party (possibly at the inistence of major donors) pushed back too.
“While I believe the very wealthiest and most fortunate Americans must contribute more to investing in our future (e.g. BBB) and paying for our past (e.g. the federal debt), taxing the unrealized gains of a small subset of people is a difficult policy to craft — let alone enforce,” one Democratic member of Congress told The (NY) Post.”
So for the moment, billionaires’ wealth is safe from the government’s wealth tax plan.
But yours isn’t…
Because there’s an even more evil tax that’s about to target not only your income but your wealth as well.
We’ll dive in the deep end of that in your next letter.
Make the trend your friend,
Editor, Streetlight Daily