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)~

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RuthHolmes67 · 56-60, F

How about the top 5% payin the same percentage we are obliged to?
All of the corporations paying their due,
All of the trump types pating their due .
And why should churches get tax exemption?
Sounds like were no further on than in 1776.

NatureGuy77 · 56-60, M

@RuthHolmes67 You do realize corporations pass along taxes onto consumers of their products (all of us) in the form of higher prices, incrementally lower pay/benefits?

LeopoldBloom · M

@NatureGuy77 So should we not tax corporations at all? I’m sure they’ll pass the savings on to the consumer as they always have. /s

RuthHolmes67 · 56-60, F

@LeopoldBloom corporations should pay more taxes especially as they are owned by the top five percent tax evaders

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SusanInFlorida · 31-35, F

@NatureGuy77 good irony/sarcasm, lol.

the average wage slave hasn't got a clue about how corporate taxes work. they're simply added into the price of the final goods offered for sale.

if USA corporate taxes get too high, then we end up getting our cars, clothes, etc from foreign companies.

Europe's corporate tax rate is about half that of the USA.

NatureGuy77 · 56-60, M

@SusanInFlorida You increase the cost of doing business, thru tax or regulations or both, and that cost trickles to the consumer in higher prices for the goods and services that business markets. It’s reality.

SusanInFlorida · 31-35, F

@RuthHolmes67 I'm intrigued by the idea of a flat tax. Everybody pays the same percentage? 23% is commonly cited. the way you protect lower income workers is by exempting the first $80,000 or whatever. But above that level its 23 cents out of every dollar you get.

no deductions for mortgage interest, uninsured hurricane damage; tesla cars; state income taxes; property taxes; moving expenses; energy efficient water heaters; solar panels . . .

SusanInFlorida · 31-35, F

@NatureGuy77 business taxes are "regressive". if you're paying GM's corporate taxes when you buy a new vehicle, then it's hitting the lower income buyer harder.

same with gasoline tax, sales tax, etc.

NatureGuy77 · 56-60, M

@SusanInFlorida Yes but it would never pass. The optics of it. A national VAT tax would be efficient to capture those avoiding taxes and the underground economy and those illegals working for cash. That will never happen either. Exemptions for food, clothing, and necessities to protect lower income citizens.