Does anyone seriously believe that doubling taxes will fix the spending problem, or reduce the national debt?

[i]Photo above - The White House proposes resurrecting Carter era tax rates. Can stagflation be restored too?[/i]

Imaginary conversation:

Biden re-election team: “Mr President, we suggest that you announce you're going to double the capital gains tax. Fron 23% to 45%. And make it apply to dividends too. Voters will love you for it."

President Biden: “Fine by me. I don't believe in stocks or mutual funds. I've always said those are unsafe. People should buy US Treasury Bills instead.”

My wording might be imaginary, but a variation of that conversation CERTAINLY took place over the holiday weekend. And now all the democrats who understand money are freaking out. Because not only will this NOT fix our budget problems (people will just top selling stocks, like they've stopped selling homes), but because a huge tax hike might ruin their OWN re-election chances in this year.

If you live in New York, California, Miami (Mr. Bezos, I'm looking at you) or any place where people with real money can afford to live, you're probably already calling your congresspersons and senators. I don't have repeat THOSE imaginary conversations, do I?

Stupid proposals like this happen because the assumption behind policy changes is that “everybody will behave just like they did before.” So in 2022 the federal government collected $250 billion in capital gains taxes. Someone is assuming that if the tax rate doubles (at all tiers, not just the max), the new haul will be $500 billion. Stop laughing, that's really how the politicians who created our $34 trillion national debt think.

If you don't any stocks, don't have a 401K, or an individual retirement account, you might be marching around cheering. “Taxes double? So what! Good riddance. Screw dem greedy folks who've been saving10% of their paychecks every month. They never should've done that. This'll teach 'em. Now where's my guaranteed basic income, and student loan forgiveness?” These are votes Biden can surely count on, no?

Biden is facing a tough re-election. I get it. He's losing in the swing states to a man who's about to become a convicted felon. Foreign students are rampaging on US campuses because the prez isn't antisemitic enough to suit them. Biden can't cut spending, can't force Powell to reduce interest rates, can't close any of America's 800+ global military bases. The most powerful man on earth might actually be virtually powerless.

So he's doubling down, by doubling taxes.

I'm just sayin' . . .

~How Biden's Capital Gains Tax hike will crush the economy (msn.com)~