welcome back so every spending spree
ends in a bill
whether it's at the mall or restaurant
or on capitol hill
eventually the check comes due now that
joe biden's massive 1.9 trillion dollar
spending plan which is being paraded as
a coveted relief package
is now law democrats will begin working
on their other passion
raising taxes sources have been telling
me for weeks that president biden is
expected to keep his campaign promise
and very soon announce the largest tax
hike in three decades
a massive four trillion dollar increase
which will include
raising the corporate tax from 21 to 28
percent
it will also raise the capital gains tax
on certain individuals
from 20 percent currently to 39.6
it will raise taxes on the wealthiest
and the highest earners but what exactly
does
wealthy mean to the democrats that is
being debated right now
it is very possible that u.s companies
and those making four hundred thousand
dollars or more a year
will initially foot the bill for this
stimulus and remember
only 10 percent of the plan is actually
covered related
but the tax writers may want to remember
one basic fact
money is mobile and money will go where
it is treated best
we see that over and over again remember
back
in 2017 when president trump passed his
tax cuts and jobs act
which took tax rates down for every
income level and brought the corporate
rate down from president obama's 35
percent rate to 21
which made the united states competitive
with the rest of the world
almost immediately we watched companies
increase spending on r d and other
expenditures
we saw businesses pick up hiring sending
the unemployment rate down to a record
three and a half percent by the
beginning of 2020 we saw the economy
grow and the stock market rally for
several years and in doing so it lifted
americans wealth
we saw the opposite under president
obama's 35 percent corporate rate
that triggered a string of acquisitions
from american companies of irish
companies
the corporate rate in ireland under the
obama administration was
nine percent in ireland causing american
companies to acquire companies in
ireland move their headquarters to
ireland
and enjoy that nine percent rate instead
of the 35 percent they were seeing at
home
money is mobile because people are
mobile
why else would we now see droves of
individuals moving out of new york
and other high-tax states and take their
salaries with them to enjoy
no state income tax in florida and texas
and a quick word about that capital
gains tax if you made money in stocks
this past year
and i bet many of you did you're going
to share your earnings with the
government
it's just a question of how much i'll
ask you this
if you knew that you would be charged 20
by selling your stock in 2021
or almost 40 percent in 2022
when would you want to sell your
portfolio the answer is obvious
if everyone tries to beat a 2022
deadline expect a massive stock market
sell-off
before the ink is even dry we know the
democrats love to use the tired phrases
of pay your fair share and tax the rich
because these one-liners seem to
resonate with the populace
but the truth is the highest earners
have been and continue to pay
more than their fair share the tax
foundation says that the top 10 percent
of earners
pay 70 percent of all income tax
of course there are those companies that
have been able to get around the tax
altogether by hiring leading tax
attorneys and using every trick in the
book to pay as little as possible
legally because they can afford to hire
as many tax attorneys as they need
because money is mobile the biden
administration might want to lose the
one-liners and instead focus on
america's bottom line everyone knows
whether you are the biggest of
corporations or the smallest of
households or the leading superpower in
the world
if you want to get your financial house
in order step one
is stop digging the hole stop
overspending
stop jamming expensive provisions into
an emergency spending package
that has nothing to do with the
emergency you claim to be dealing with
the biden administration has already
made the mistake of reversing all of
trump's immigration policies
simply because they were from president
trump and like we've said for months
they created a
crisis at our border we have already
seen the impact that bad policy has had
on high tax states
the biden administration ought to learn
from those mistakes and remember
that money is mobile and hopefully think
twice before causing an economic crisis
as well this tax increase will be
another crisis of joe biden's making
democrats will have to own this because
just like the 1.9 trillion dollar
spending package
they will try to pass this tax increase
without a single republican vote the
question is if we don't try to hold them
accountable
will they even care