Fox Business Network host Larry Kudlow warned that President Biden's massive tax hike plan, particularly affecting capital gains, inheritances, and a cash injection to the Internal Revenue Service, will spell disaster for American workers and U.S. global competitiveness.
LARRY KUDLOW: President Biden has proposed the highest capital-gains tax probably in history, not quite sure about that but I do know it is the highest in the past 50 years plus. 43.4%, added with the corporate tax that gets you to over 50%, well over 50%, then, of course, state cap-gains will get you close to 60%.
Nobody in Europe is even close to that. The average is 18%. Not even Bernie Sanders' beloved Sweden, which is 30%. By the way, China is 20%. By the way, China’s 25% corporate tax would be lower than our 28%. So we will be above everybody.
The combination of jacking up taxes on companies and their profits and their gains, or anytime you sell a small business, you pay capital gains, or sell a farm, or a ranch.
By the way, Team Biden may eliminate the stepped-up basis for capital gains around the death tax, meaning heirs would have to sell assets immediately. That is a plan the Penn-Wharton School claims would raise $113 billion.
With respect, I have my doubts. I think it is terrible policy. So okay, we’re pouring taxes on taxes. We’re attacking investment which is the key to blue-collar middle-class living standards and incomes. They’re being attacked. An attack on our competitiveness in the global race for capital, [Biden's] policies will surely throw a wet blanket on our booming economy. Now, there’s more.
Today, comes word that it isn’t enough. Team Biden wants a cool $80 billion to beef up IRS audits of high earners. So I will quote from this morning’s "New York Times," my friend Jim Tankerly, Alan Rapaport, and I quote, the administration will portray the efforts coupled with new taxes proposing on the corporations and the rich a way to level the tax playing field between typical American workers and high earners.
The $80 billion in the proposed funding by the way would be an increase of 2/3 over the agency’s entire funding levels for the last decade.