Name:   MartiniMan - Subject:   Dementia Joe's tax plan screws the middle class Date:   4/28/2021 9:26:51 AM

We know not just from the math, from even a rudimentary understanding of the history of taxation and the reality about who pays corporate taxes that the only way to pay for the left wing big government spending is through the middle class and below......the 95%ers.  So when Dementia Joe claims he is only taxing the wealthy be advised that this is bald faced lie, a brazen, cold-hearted lie that matters to us a lot.  

On the math front, if you take all the income and wealth of the upper 5%...ya know, the evil "wealthy", it can't run the government for even a year let alone make a dent in the debt.  And even if you just taxed 100% of their income it would only run the Federal government for a few months.  That's the math. 

But on the historical front we know that the "wealthy" also have the best tax accountants and attorneys and will do everything they can to avoid paying taxes, including the ones who claim they don't pay enough in taxes.....I'm looking at you Warren Bufffet who have been fighting with the IRS for a decade about $9B in taxes they claim you owed.  And you Bill Gates that hid all your wealth in tax advantaged trusts.  And well pretty much every wealthy liberal on the planet all of whom are hypocrites who know they won't really be paying for these tax increases.

And then there is the ever popular myth about taxing corporations.  It is a fundamental reality that corporations do not pay taxes, they collect them from their customers.  All revenue and income from a corporation comes from one ultimate source....the consumer.  That's me and you.....wealthy, upper middle class, middle class, lower middle class, working poor and even those that fall below the poverty line.  We pay those taxes in the form of the cost of goods and services.  Our food, our transportation, our housing, our medical care....all of it.  If a corporations taxes go up they are going to raise the cost of their goods and services to pay those taxes because they have obligations to their shareholders to provide an adequate return on their investment.  That is the cold, hard reality of how this works and middle classes and below bear the brunt of the tax increases because they purchase most of the goods and services in this country and are the least able to absorb additional costs due to tax increases on corporations.

As bad as that is, this is how Dementia Joe's going to directly screw the middle class.  See the quote below for the answer.

Meet stepped-up basis. Here’s how that works. Say you’re a 60-year-old almost-retiree whose 90-year-old parent just passed away. You are bequeathed their Florida home acquired in 1980 for $100,000. Its value is now $500,000.  You sell it for $500,000. Thanks to “stepped-up basis,” you should owe no federal capital gains tax on the sale.

But what happens if all this happens after Democrats eliminate this so-called “loophole?” You’ll owe capital gains taxes on the gain in value since the property was purchased 41 years ago, most of which is probably inflation. That’s a likely 20 percent tax hit on the “gain” of $400,000 – some $80,000 to Uncle Sam. For people with incomes over $1 million, Biden may raise Capital Gains taxes to match the highest personal income tax rate of 39.5 percent.

The Biden plan may exempt the first $1 million of “unrealized” gains, but that’s a shallow threshold for many family businesses and farms. And it is not just homes or beach property. It includes stocks and family businesses.

Being allowed to keep your or your family’s own money is now a “tax loophole.”