Biden Threatens American Economy
Julio Gonzalez, M.D., J.D.
It's as if the Biden Pseudo-Administration purposely wants the economy to struggle. It was a day of economic good news. America's jobless claims reached a post-pandemic low of 547,000 indicating a continued acceleration for the nation's economic indices. The Dow Jones Industrial Average gained on the news, breaking 34,100. Then, at 1:06 PM EDT, Bloomberg News reported that President Designate Joe Biden was proposing increasing the capital gains tax by 46%. Within hours, the Dow gave up 305 points and the S&P 500 fell nearly 1%, and the Ten-year Treasury fell by 0.05% percentage points. Cryptocurrency was not immune to the absurdity of Biden's proposal as Bitcoin fell 8% to a low of $48,825.
The Biden proposal applies to those earning $1 million of more who would have to pay a new marginal tax rate of 36.9% meaning that affected investors would end up paying as much as 43.4% on their investment income. The current capital gains tax currently stands at 20% thanks to former President Donald J. Trump's efforts.
Nor was the news unexpected. President Designate Biden and his Pseudo-Administration have been signaling their intent to raise taxes and even out taxes between wage earners and investors. The plan has been met with great skepticism from economists, as raising taxes is sure to pour cold water on an already struggling economy, and evening out taxes on capital gains rates is guaranteed to cripple innovation, research, and development, each of which requires capitalinvestments to succeed. Ironically, the hardest hit by such a tax hike would not be the rich, as Biden and his supporters would like others to believe, it is the middle class, in particular start-up and growth companies that rely the most on investments from entrepreneurs.
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Dr. Julio Gonzalez is an orthopaedic surgeon and lawyer living in Venice, Florida. He served in the Florida House of Representatives. He is the author of numerous books including The Federalist Pages, The Case for Free Market Healthcare, and Coronalessons. He is available for appearances and book signings, and can be reached through www.thefederalistpages.com.
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