As we all know, President Joe Biden has been hinting at implementing tax changes since before he was selected for the DNC’s presidential nomination in 2020. And now, it looks like those plans are about to be announced.
As Bloomberg reported on Thursday, “Biden to propose almost doubling the capital gains tax rate for the wealthy to 39.6%. Coupled with an existing tax on investment income, that means that federal tax rates for investors could be as high as 43.4%.”
No doubt, Biden and his cohorts have it in their minds that this tax increase will not only help pay for their socialistic agenda of offering student debt cancellation, free healthcare, and all sorts of other anti-capitalist ideas but that it will serve their goals of making the wealthy, well, less so.
But I doubt that the former vice president or his cronies anticipated just what effect such a tax proposal would have on the current stock market and, thus, the American economy. Nor do I think they predicted such an immediate response.
As Bloomberg, CNBC, and others reported, by Thursday afternoon, shortly after the proposed tax increases were announced, stocks nationwide took a sharp and downward turn.
According to CNBC, the Dow immediately fell by more than 300 points, Nasdaq dropped by about 132 points, and the S&P 500 tanked by 38 points – in a matter of hours.
As many on social media pointed, we knew this would happen should Biden push for changes like this. And we all told them so – you know, kind of like how we told them opening up the border and canceling the wall was a bad idea.
Too bad they didn’t listen.
Instead, they put a man in office who has no concern for Americans, rich or poor. Sure, like all his socialist buddies, he says he’s for the working American, for those in blue collars, for those who have to work to make ends meet.
But it’s actions or proposals like this that prove he doesn’t.
Well, as you knew, a crash on the stock market affects a hell of a lot more people than just those at the top who make millions from it on a yearly basis.
As we can see already, a wealth tax such as the one being proposed does nothing except to scare big-time investors and shareholders into selling off their major stock. If there’s a chance that they’ll be heavily taxed on their investments in our market, they’ll simply take their business to somewhere that allows more freedoms. Or they’ll just sit on their capital.
In the meantime, average or lower earners and investors, as well as those who have a 401(k) that demands a steady economy, will pay the ultimate price.
And currently, there are more “average” investors than ever before.
Under former President Donald Trump, the American economy began a steady climb that enriched Americans of all kinds. We had less unemployment, more money in our pockets, and enjoyed the successes of more than a few wise business deals with foreign nations.
This, as well as Trump’s tax cuts and restructuring of major economic regulations, led more and more Americans to invest and put faith in our booming stock market.
Of course, the pandemic slowed this a bit, but only for a short time. As Trump continued to make moves to enrich America, the economy bounced back with unexpected success. So everyday Americans such as you and I continued to invest.
And now, thanks to Biden, we are all paying dearly for it. As Kipp Jones of the Western Journal so wisely pointed out, “A lowering tide sinks all boats.”
Some just might tank a bit faster than others. For those at the top, you know, the ones who Biden wanted to hurt the most, they’ll live to see the light of another day. Unfortunately, thanks to their wise withdrawal from Biden’s economy, it’s the little guy, the middle-class Americans, who will really pay the price.