Redistribution will not improve the lives of Americans

BIDEN ECONOMIC PLAN IS ABOUT REDISTRIBUTION NOT CREATING WEALTH

UNWILLING TO BE CANDID ABOUT POLICY

The parts of the Biden economic plan that he will admit to is really just another form of economic redistribution that will result in the decline of the American economy.

Increase the corporate tax from 21%, which is now in line with most other countries in the world, to 28% which will make it one of the highest and noncompetitive with our competitors. This is a way of appealing to peoples envy by labeling this tax as a giveaway to the rich. A competitive corporate tax, will encourage companies to stay in the United States and entice others to shift their facilities to this country.This will create more jobs and more jobs raises the standard of living for all. Redistribution is just eating the seed corn and leads to decline in economic activity.

Eliminating the rest of the tax cuts will take money out of the private sector and place into bureaucratic black hole that will lead to a declining economy.  

Also a proposal to place a corporate minimum tax, which sounds a lot like an actual asset tax that will slowly lead to a decline of these companies.

These corporate tax policies will likely see a decline in value of 401K and even another crisis in public pension funds. The solution will likely be more taxes.

The Biden plan also plans to eliminate the step-up provision in estate taxation. This provision presently values estate assets at the value they are when death occurs rather than valuing them at cost of purchase value. This means that if an asset has grown in value since it purchase, which could be many decades,an inheritance tax will be levied on the increase in value. This tax would be at regular income tax rates which would make the tax 39.6% on over 100,000 value. this would virtually eliminate the  passing of a business and most assets on to your family. This would also encourage the shifting of assets from paper assets to hard assets. Many of the New Democrat party believe that all people should start with nothing and discourage passing on of assets as a symptom of the privileged. A society that discourages savings and a view to the future is a society destined to collapse.

While not officially admitted to, it is also a proposal to lower the threshold on estate tax from 5 million to $1.2 million. Today anyone who owns a home and accumulated wealth could pass this threshold.

Biden's treatment of capital gains is to eliminate the 10% and 20% tax on capital gains and replace it by taxing gains at the regular income tax rate. This of course could be as high as 39.6%. Again the discouraging of paper assets and the shifting of assets to hard assets and likely a decline in economic activity.

Another proposal is 12.4 % tax on all income over $400,000, this is addition to the 39.6% income tax. This will result in taxes near 65% . While envy encourages this kind of taxation, it will lead to all kinds of creative tax schemes that will lead to decline in economic activity.

All these ideas believe in creating a more equal society by redistributing wealth from those who produce and work hard to those who do not. It will, as history has shown, result in a poorer country for everyone.