Biden' s 2025 budget, raising taxes to record levels.

 WILL 45% CAPITAL GAINS TAX BE GOOD FOR THE ECONOMY?

PAY FULL CAPITAL GAINS ON INHERITED PROPERTY

Two items that are part of the 2025 budget proposed by the Biden Administration is raising concerns about the future of investing in this country. besides raising the corporate income tax, which will again make this country less competitive compared with many other countries. they are proposing raising the capital gains tax to over 44.6 % the highest rate in over 100 years. 

With this rate after state capital gains are counted the governments will be taking over 50 % of any gains made through investment. Losses are limited to $3000 a year and then must be taken in later years at $3000 a year. It is recipe for economic disaster, as it may be very risky to invest any money into anything that is subject to such taxes, especially when you consider that many these investments are just inflated due to government created inflation. It may be very difficult to hope for any return from investing in the future.

Even worse is the idea that on death, any inherited assets will be taxed with this capital gain rather than it being valued at the stepped up rate as it is now. today when someone dies the purchase price is stepped up to the value it is at death.

Example, if parents purchased a home in 1970 for $30,000 and then died with the property valued at $350,000 the inheritance tax is paid on the increase in value over the $350,000. In the proposed new law, You would pay 45% on the difference of $315,000 or $141,750 and then also pay the inheritance tax. This would also apply to any stocks, or other investments that would be inherited. It is a direct attack on any hope of keeping up with government created inflation. 

Many have been led to believe that the huge increases in spending by the government have no effect on them, the reality is that everyone pays for this irresponsibility, vote buying, and corruption either through inflation immediately or by in effect the confiscation of any wealth in the future. 

While this is just one example of the possible schemes being hatched to cover for all this spending, I suspect we will see many more in the near future.