John Kartch

Small Business on Threat of Biden Tax Hikes: "We have already started a hiring freeze."

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Friday, May 21st, 2021, 11:41 AM PERMALINK

There are over one million small businesses organized as C-corporations and they will be directly hit by President Biden's corporate tax rate increase. These employers are vital members of the Main Street business community in cities and towns across America.

With Biden's threat to raise the corporate tax rate from 21 percent up to 28 percent, some small businesses are instituting hiring freezes.

As reported by Reuters, Michael Canty of Ohio-based Alloy Precision Technologies is very concerned about the Biden tax increases:

His manufacturing company employs roughly 85 people and is formed as a C-corp under the federal tax code and subject to the corporate tax rate.

He said the proposal amounts to a 33 percent increase is his company's taxes and warned that it will make companies like his less competitive in the global marketplace.

"We have already started a hiring freeze. Between the tax increase and what we see as a tough regulatory environment, we have to prepare," Canty said.

Biden doesn't want the public to know that his tax increases will wallop small businesses hard.

During his campaign, President Joe Biden promised the American people that he would not raise taxes on small businesses. Now safely in office, he is violating that promise. His tax plan imposes direct tax increases on small businesses.

The promise was made on Feb. 20, 2020 before a national audience during a Democratic debate hosted by MSNBC:

MSNBC's Hallie Jackson: "I want to ask you about Latinos owning one out of every four new small businesses in the United States. Many of them have benefited from President Trump's tax cuts, and they may be hesitant about new taxes or regulations. Will taxes on their small businesses go up under your administration?"

Biden: "No. Taxes on small businesses won't go up."

Click here or below to see Biden's broken pledge

But Biden is pushing a series of tax increases that raise small business taxes:

1. Biden's increase in the top marginal income tax rate to 39.6 percent will hit small business sole proprietorships, LLCs, partnerships and S-corporations.

Small businesses organized as pass-through firms don’t pay taxes themselves. Instead, the profits of the business “pass through” to the owners who pay individual taxes on their 1040 form. Biden wants to raise the top marginal income tax rate to 39.6 percent which will hit many small businesses.

From the Tax Policy Center:

"In 2017, individuals reported about $1.03 trillion in net income from all types of pass-throughs accounting for 9.3 percent of total AGI reported on individual income tax returns."

According to the Congressional Research Service, "The majority of both corporations and pass-throughs in 2011 had fewer than five employees (55% of C corporations and 64% of pass-throughs). Nearly 99% of both corporations and pass-throughs had fewer than 500 employees, the most common employment-based threshold used by the Small Business Administration (SBA)."

As noted in a Senate Finance Committee report, "in 2016, only 42 percent of net business income in the United States was earned by corporations, down from 78.3 percent in 1980."

2. Biden’s corporate income tax rate hike from 21 percent to 28 percent targets one million small businesses across the country organized as corporations.

As noted by the Small Business Administration Office of Advocacy, there are 31.7 million small businesses in the U.S. Of those, 25.7 million have no employees, while 6 million have employees. Of these 6 million small employers, 16.8 percent, or 1 million of these businesses are classified as c-corporations. The SBA classifies a small employer as any independent business with fewer than 500 employees.

Biden claims his spending plan makes large corporations pay their “fair share.” However, the plan will raise taxes on many small businesses that are structured as corporations.

3. Biden's elimination of stepped up basis: A second death tax on small business.

Biden is targeting small businesses with a second Death Tax: Biden will eliminate step-up in basis. This is a devastating tax increase on small businesses. In this video, you can see a sample of the many times Biden has threatened to eliminate step-up in basis.

Elimination of stepped up basis would impose an automatic capital gains tax at death -- separate from, and in addition to -- the Death Tax.

In a Forbes piece titled "This Biden Tax Hike Hike Will Hit Mom & Pop Hard" tax lawyer Robert W. Wood writes:

Under current tax law, assets that pass directly to your heirs get a step-up in basis for income tax purposes. It doesn’t matter if you pay estate tax when you die or not. For generations, assets held at death get a stepped-up basis—to market value—when you die. Small businesses count on this.

Wood notes:

Biden's proposal would tax an asset's unrealized appreciation at transfer. You mean Junior gets taxed whether or not he sells the business? Essentially, yes. The idea that you could build up your small business and escape death tax and income tax to pass it to your kids is on the chopping block. Biden would levy a tax on unrealized appreciation of assets passed on at death. By taxing the unrealized gain at death, heirs would get hit at the transfer, regardless of whether they sell the asset.

As reported previously by CNBC:

“When someone dies and the asset transfers to an heir, that transfer itself will be a taxable event, and the estate is required to pay taxes on the gains as if they sold the asset,” said Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center. 

As reported by Richard Rubin of the Wall Street Journal:

Manufacturers and farmers, who tend to be more asset-rich and cash-poor, are watching closely for those details, concerned they might have to sell illiquid businesses to pay the taxes.

Courtney Silver, president of Ketchie Inc., a family-owned, 25-employee machine shop in Concord, N.C. that started in 1947, said she was concerned about the potential impact.

“I really can’t imagine being hit with that decision of that potential tax implication,” said Ms. Silver, 40 years old, who took over the business when her husband, Bobby Ketchie, died in 2014. “That to me is really hard to wrap my head around.”

It could be challenging for asset owners to figure out their tax basis, which is what they paid for the property and invested in it. That complexity is part of what doomed a similar proposal in the late 1970s, which Congress passed, then delayed, then repealed.

As noted in an Ernst and Young study, if a small business is unable to provide sufficient evidence to prove the cost basis of an asset, then it may set to $0. In other words, tax would be applied to the entire value of taxpayer assets:

“Family-owned businesses may also find it difficult to comply because of problems in determining the decedent’s basis and in valuing the bequeathed assets. It seems likely that these administrative problems could lead to costly disputes between taxpayers and the IRS. Additionally, if sufficient evidence is not available to prove basis, then $0 may be used for tax purposes. This may result in an inappropriately large tax at death.”

To honor his small business tax pledge to the American people, Biden must forego the above tax increases.


Biden Breaks Small Business Tax Pledge

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, May 5th, 2021, 10:30 AM PERMALINK

During his campaign, President Joe Biden promised the American people that he would not raise taxes on small businesses. Now safely in office, he is violating that promise. His tax plan imposes direct tax increases on small businesses.

The promise was made on Feb. 20, 2020 before a national audience during a Democratic debate hosted by MSNBC:

MSNBC's Hallie Jackson: "I want to ask you about Latinos owning one out of every four new small businesses in the United States. Many of them have benefited from President Trump's tax cuts, and they may be hesitant about new taxes or regulations. Will taxes on their small businesses go up under your administration?"

Biden: "No. Taxes on small businesses won't go up."

Click here or below to see Biden's broken pledge

But Biden is pushing a series of tax increases that raise small business taxes:

1. Biden's increase in the top marginal income tax rate to 39.6 percent will hit small business sole proprietorships, LLCs, partnerships and S-corporations.

Small businesses organized as pass-through firms don’t pay taxes themselves. Instead, the profits of the business “pass through” to the owners who pay individual taxes on their 1040 form. Biden wants to raise the top marginal income tax rate to 39.6 percent which will hit many small businesses.

From the Tax Policy Center:

"In 2017, individuals reported about $1.03 trillion in net income from all types of pass-throughs accounting for 9.3 percent of total AGI reported on individual income tax returns."

According to the Congressional Research Service, "The majority of both corporations and pass-throughs in 2011 had fewer than five employees (55% of C corporations and 64% of pass-throughs). Nearly 99% of both corporations and pass-throughs had fewer than 500 employees, the most common employment-based threshold used by the Small Business Administration (SBA)."

As noted in a Senate Finance Committee report, "in 2016, only 42 percent of net business income in the United States was earned by corporations, down from 78.3 percent in 1980."

2. Biden’s corporate income tax rate hike from 21 percent to 28 percent targets one million small businesses across the country organized as corporations.

As noted by the Small Business Administration Office of Advocacy, there are 31.7 million small businesses in the U.S. Of those, 25.7 million have no employees, while 6 million have employees. Of these 6 million small employers, 16.8 percent, or 1 million of these businesses are classified as c-corporations. The SBA classifies a small employer as any independent business with fewer than 500 employees.

Biden claims his spending plan makes large corporations pay their “fair share.” However, the plan will raise taxes on many small businesses that are structured as corporations.

3. Biden's elimination of stepped up basis: A second death tax on small business.

Biden is targeting small businesses with a second Death Tax: Biden will eliminate step-up in basis. This is a devastating tax increase on small businesses. In this video, you can see a sample of the many times Biden has threatened to eliminate step-up in basis.

Elimination of stepped up basis would impose an automatic capital gains tax at death -- separate from, and in addition to -- the Death Tax.

In a Forbes piece titled "This Biden Tax Hike Hike Will Hit Mom & Pop Hard" tax lawyer Robert W. Wood writes:

Under current tax law, assets that pass directly to your heirs get a step-up in basis for income tax purposes. It doesn’t matter if you pay estate tax when you die or not. For generations, assets held at death get a stepped-up basis—to market value—when you die. Small businesses count on this.

Wood notes:

Biden's proposal would tax an asset's unrealized appreciation at transfer. You mean Junior gets taxed whether or not he sells the business? Essentially, yes. The idea that you could build up your small business and escape death tax and income tax to pass it to your kids is on the chopping block. Biden would levy a tax on unrealized appreciation of assets passed on at death. By taxing the unrealized gain at death, heirs would get hit at the transfer, regardless of whether they sell the asset.

As reported previously by CNBC:

“When someone dies and the asset transfers to an heir, that transfer itself will be a taxable event, and the estate is required to pay taxes on the gains as if they sold the asset,” said Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center. 

As reported by Richard Rubin of the Wall Street Journal:

Manufacturers and farmers, who tend to be more asset-rich and cash-poor, are watching closely for those details, concerned they might have to sell illiquid businesses to pay the taxes.

Courtney Silver, president of Ketchie Inc., a family-owned, 25-employee machine shop in Concord, N.C. that started in 1947, said she was concerned about the potential impact.

“I really can’t imagine being hit with that decision of that potential tax implication,” said Ms. Silver, 40 years old, who took over the business when her husband, Bobby Ketchie, died in 2014. “That to me is really hard to wrap my head around.”

It could be challenging for asset owners to figure out their tax basis, which is what they paid for the property and invested in it. That complexity is part of what doomed a similar proposal in the late 1970s, which Congress passed, then delayed, then repealed.

As noted in an Ernst and Young study, if a small business is unable to provide sufficient evidence to prove the cost basis of an asset, then it may set to $0. In other words, tax would be applied to the entire value of taxpayer assets:

“Family-owned businesses may also find it difficult to comply because of problems in determining the decedent’s basis and in valuing the bequeathed assets. It seems likely that these administrative problems could lead to costly disputes between taxpayers and the IRS. Additionally, if sufficient evidence is not available to prove basis, then $0 may be used for tax purposes. This may result in an inappropriately large tax at death.”

To honor his small business tax pledge to the American people, Biden must forego the above tax increases.

 

 

Photo Credit: U.S. Secretary of Defense


Biden Chief of Staff Dodges "Any Spending Cuts At All?" Question from CBS

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Monday, May 3rd, 2021, 9:04 PM PERMALINK

White House chief of staff Ron Klain dodged a spending cuts question during a CBS Face the Nation interview with John Dickerson.

Dickerson: "Even believers in activist government think that the government can be very inefficient. With a government plan this big, is the President going to offer any spending cuts at all?"

Klain: [dodge]

Dickerson: "I didn't hear an answer on spending cuts."

Click here or below to view:


Norquist on Texas HB 2889: New Tax Will Make Texas Travel More Expensive, Hit Small Businesses Battered by Pandemic

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Monday, April 19th, 2021, 10:10 AM PERMALINK

On NewsRadio 740 KTRH today ATR President Grover Norquist sounded the alarm on Texas House Bill 2889:

KTRH host: "Travel industry looking to rebound from Covid -- Texas lawmakers though quietly advanced a bill to tax your use of travel agencies. Grover Norquist with Americans for Tax Reform says that HB 2889 would just be an additional cost passed on to you."

Norquist: "If you go to a hotel and you go through an online travel agency, you'll pay an additional fee. It's a new additional tax that will make it more expensive for people to go to hotels -- and hotels and restaurants have really been hit hard by Covid and the pandemic."

KTRH: "Norquist says Lieutenant Governor Dan Patrick shot down a similar measure last session. He hopes that the Lieutenant Governor will do it again this year."

Click here or below to hear the audio clip.

For years, the Lone Star state has been a shining light for other states, showing that low taxes mean big growth.

One of nine states with no income tax, Texas has led the nation in population growth over the past decade, and become the world’s ninth-largest economy.

So it comes as a surprise that some Texas legislators are advancing a tax hike this session, including the chairman of the House Ways and Means committee.

The tax hike, House Bill 2889, would drive up costs when you go online or call a travel agent to book accommodations. It would apply the hotel tax to the small service fees agents charge, which adds new tax and compliance burdens.

It only gets more confounding when you consider the state, along with local governments, will get around $17 billion from the Biden bailout.

There was some overblown fear of a budget gap, but that gap is turning out to be far smaller than expected, and the state has federal cash lying around which further renders budget gap talk pointless.

It gets even worse when you consider the tax in question, is a tax on tourism.

This picks on a hospitality industry that has been absolutely crushed by the pandemic. Job loss in hospitality in Texas has been worse than any other industry, employment was down 23% from February 2020 to January 2021 (Private Enterprise Research Center at Texas A&M). 

Not to mention, hiking taxes on booking travel would have a negative downstream effect on restaurants, trucking, retail shopping, and more.

Texas legislators should be on high alert, especially Senate Republicans, as the House threatens to moves this tax hike next week.

The good news, over 40 state legislators have signed the Taxpayer Protection Pledge committing to their constituents they will oppose all tax hikes.

The bad news, some of these pledge-signers are flirting with breaking their commitment – just to support an unjustifiable tax hike that picks on the industries most hurt by the pandemic.

Texas taxpayers should get on the phone and make sure their legislators are not falling for the tourism tax hike trap.

 


Pipeline Worker Three Months After Biden Killed Keystone: “We’re hurting and we need jobs.”

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, April 14th, 2021, 2:10 PM PERMALINK

"He's not helping us and I don't know of any unions that he's helped so far in other trades."

Fox Business Network's Carley Shimkus visited Bald Knob, Arkansas to interview workers affected by President Biden's harmful executive order to halt the KeystoneXL pipeline. Nearly three months after Biden's decision, workers and their families are hurting.

Here are some onsite quotes from the report:

"It's hard to make plans when you've got an administration that's trying to crush your future."

"I've looked for them green jobs and they are not there."

"I lost probably $60,000 - $80,000 not being able to go on that job. That's my livelihood. If I'm not working, I'm barely scraping by. I've got two kids to support, what am I supposed to do there?"

"My whole family is unemployed."

"The middle class is standing right here and looking at him [Biden] and telling him, 'we're hurting, and we need jobs.'"

"He's not helping us and I don't know of any unions that he's helped so far in other trades."

Americans for Tax Reform is collecting personal testimonials of Americans hit by President Biden's energy restrictions. (If you would like to submit a short video, please send it to Mike Mirsky at mmirsky@atr.org). Please see the examples below:

Pipeline Worker: "I've got my whole life invested in this."

"Biden's decisions to shut down the KeystoneXL pipeline and many others affects me and my family of five very much so."

Oilfield Welder on Biden's Hostility to Oil and Gas Jobs: "You have to change your whole life up because of politics."

“I am currently unemployed due to Joe Biden’s executive order to halt construction of the KeystoneXL pipeline."

"Canceling this Keystone Pipeline to make a group of people happy has had real life consequences. We got people who can't work now, can't provide for their families."

Biden Keystone Order Hits Small Business Hard: “Over $3,000 in monthly revenue that was gone literally within 48 hours.”

“This is our livelihood. We don’t consider it a temporary job. We consider it as our career.”

 


Norquist: Why is Biden Raising Taxes in a Pandemic?

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, April 13th, 2021, 12:50 PM PERMALINK

ATR President Grover Norquist joined Jacqueline Alemany on Washington Post Live to discuss President Biden’s proposed tax increases and his more than $4 trillion infrastructure plan. 

During this conversation, Norquist posed an important question: why would you raise taxes during a pandemic?

Grover Norquist: 

"Well, you have to ask yourself, we're coming out of a pandemic; we're coming out at a time when many states closed much of their economies. We're beginning to come out of this and why would Biden think now is a good time to raise the American corporate income tax to the highest in the world, higher than communist China; higher than anything in Europe; and the most low-growth path by having such a high corporate income tax?

Why would you double the capital gains tax? Why would you set a second level of the death tax? Why would you add energy taxes? The United States is very competitive in its cost of energy, and he wants to subsidize uncompetitive, expensive energy and tax energy that's less expensive; and undo infrastructure, to tear down exactly the infrastructure that gets natural gas to people's jobs and stopping the pipelines in the Midwest?

So, why a list of things all of which we know slow economic growth and put us in a bad path in terms of jobs or GDP or competitiveness in the world?"


Biden Gas Tax Hike Would Violate Middle Class Tax Pledge

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Monday, April 12th, 2021, 5:22 PM PERMALINK

Bloomberg News is reporting that President Biden is open to a gas tax increase on the American people.

As tweeted by Bloomberg's Erik Wasson:

Biden during infrastructure meeting with Congress was open to 5 cent gas tax increase, splitting up Jobs plan into different bills and possibly shrinking it somewhat says @DonaldPayneJr. "It doesn't seem like he really cares how it gets done as long as it gets done"

"A Biden gas tax hike would be a blatant violation of his pledge against any tax increase on anyone making less than $400,000" said Grover Norquist, president of Americans for Tax Reform.

President Biden and Vice President Kamala Harris pledged to every American making less than $400,000 that they would not raise a single penny of their taxes. Biden and Harris made the pledge at least 56 times.

Below is the video and written documentation of this promise, in case Biden and Harris try to weasel out of their pledge.

Click here for the short version of the video with 13 examples of the pledge.

Click here for the full version of the video with every instance of the pledge.

Joe Biden on CNBC, May 22, 2020: "Nobody making under 400,000 bucks would have their taxes raised. Period. Bingo."

Joe Biden on ABC News, August 23, 2020:

Joe Biden in Kenosha, Wisconsin on September 3, 2020: "I pay for every single thing I’m proposing without raising your taxes one penny. If you make less than 400 grand, you’re not going to get a penny taxed."

Joe Biden during a WFLA Interview on September 15, 2020: “Nobody making less than $400,000 have to pay a penny more in tax under my proposals.”

Joe Biden during a Telemundo Interview on September 15, 2020: "I'm not going to raise taxes on anybody making less than 400,000.”

Joe Biden on Twitter, September 17, 2020: “If you make under $400,000, you will not pay a penny more in taxes when I'm president."

Joe Biden on Twitter, September 17, 2020: "No surprise, Donald Trump is lying about my tax plan. Here’s the truth about how I’ll make corporations pay their fair share while ensuring Americans making under $400,000 don’t pay a penny more."

Joe Biden in Hermantown, Minnesota on September 18, 2020 "And I’ll do it without raising anyone’s taxes if you make less than $400,000 a year."

Joe Biden in Manitowoc, Wisconsin on September 21, 2020: “Under my plan nobody making less than 400,000 bucks -- and I don’t make it and you don’t make it, I don’t think -- in this country will see their taxes go up.”

Joe Biden in Greensburg, Pennsylvania on September 30, 2020: “And we’re going to do it without asking anyone who makes under $400,000 a year to pay one more penny in taxes. Guaranteed. My word on it.”

Joe Biden in Jonestown, Pennsylvania on September 30, 2020: “We’re going to do it all without raising a penny in taxes for anybody who makes less than $400,000 a year.”

Joe Biden in Grand Rapids, Michigan on October 2, 2020: “Anyone making less than $400,000 a year won’t pay a penny more."

Joe Biden in Miami, Florida on October 5, 2020: “I’m not going to raise taxes on anyone who makes less than $400,000 a year. You won’t pay a penny more. I guarantee you.”

Kamala Harris during Vice Presidential Debate on October 7, 2020: “Joe Biden has been very clear. He will not raise taxes on anybody who makes less than $400,000 a year.”

Joe Biden on Twitter, October 7, 2020: “Let me be clear: A Biden-Harris Administration won't increase taxes by a dime on anyone making less than $400,000 a year.”

Joe Biden in Las Vegas, Nevada on October 9, 2020: “It’s not going to raise a penny in tax for anyone making less than $400,000 a year. Not a penny.”

Kamala Harris on Twitter, October 9, 2020: “Joe Biden has been very clear: he will not raise taxes on anybody who makes less than $400,000 a year.”

Joe Biden in Erie, Pennsylvania on October 10, 2020: “I’m not going to raise taxes on anybody making less than 400 grand.”

Joe Biden in Toledo, Ohio on October 12, 2020: “I’m not going to raise taxes on anyone who makes less than $400,000 a year."

Joe Biden in Pembroke Pines, Florida on October 13, 2020: “I’m not going to raise taxes on a single solitary American making less than $400,000 a year. You won’t pay a penny more. It’s a guarantee.”

Joe Biden on Twitter, October 15, 2020: “Let me be very clear: If you make under $400,000 you won’t pay a penny more in taxes under my administration.”

Joe Biden ABC Town Hall on October 15, 2020: 

Joe Biden in Michigan on October 16, 2020: “No one who makes less than $400,000 a year will pay a penny more.”

Kamala Harris in Orlando, Florida on October 19, 2020: “Joe Biden will not increase taxes on anyone who makes less than $400,000 a year, period.”

Kamala Harris in Jacksonville, Florida on October 19, 2020: “Taxes will not be raised on anyone making less than $400,000 a year.”

Kamala Harris in Milwaukee, Wisconsin on October 20, 2020: “We will not increase taxes for anybody making under $400,000 a year.”

Kamala Harris in Asheville, North Carolina on October 21, 2020: “Joe Biden is saying, I’m not going to raise taxes on anybody who makes less than $400,000 a year.”

Kamala Harris in Atlanta, Georgia on October 23, 2020: “Which is why Joe Biden and I are saying, “One, taxes will not be raised on anyone making less than $400,000 a year.”

Joe Biden in Bucks County, Pennsylvania on October 24, 2020: “None of you will have your taxes raised. Anyone making less than $400,000 will not see a penny in taxes raised."

Joe Biden on CBS 60 Minutes, October 25, 2020:

Biden: “Nobody making less than $400,000 will pay a penny more in tax under my proposal.”

Norah O'Donnell, CBS: "That's a promise?"

Biden: "That's a guarantee. A promise. I give you my word as a Biden. That's an absolute guarantee."

Joe Biden in Atlanta, Georgia on October 27, 2020: “I guarantee you -- no matter what you hear this president lying about -- no one making less than $400,000 a year will have one penny in taxes raised. Not one penny. It’s a guarantee.”

Kamala Harris in Reno, Nevada on October 27, 2020: "Joe Biden says we’re not going to increase taxes on anyone making less than $400,000 a year."

Kamala Harris in Las Vegas, Nevada on October 27, 2020: “Joe Biden says, that we’re not going to raise taxes on anyone making less than $400,000 a year."

Joe Biden in Atlanta, Georgia on October 27, 2020: “No one making less than $400,000 a year will have one penny in taxes raised. Not one penny. It's a guarantee.”

Kamala Harris in Phoenix, Arizona on October 28, 2020: “We are not going to raise taxes on anyone making under $400,000 a year."

Kamala Harris in Tucson, Arizona on October 28, 2020: “Joe Biden who says, 'You want to deal with the economy, then one, we will not raise taxes on anyone making less than $400,000 a year.'"

Joe Biden in Broward County, Florida on October 29, 2020: “We can do it without raising taxes on a single person making less than 400,000 bucks a year.”

Joe Biden in Tampa Bay, Florida on October 29, 2020: “I guarantee you -- my word as a Biden -- no one making less than $400,000 will pay a single penny more in taxes. Not a penny.”

Kamala Harris in Fort Worth, Texas on October 30, 2020: “Joe Biden is committed to not raising taxes ever on anyone making less than $400,000 a year.”

Joe Biden in Des Moines, Iowa on October 30, 2020: “We can do it without raising a penny tax on the middle class. I guarantee you -- give you my word as a Biden -- no one making less than $400,000 a year will see a penny in their taxes raised, no one.”

Kamala Harris in McAllen, Texas on October 30, 2020: “Let’s deal with the economy and not raise taxes for anyone who makes less than $400,000.”

Joe Biden in St. Paul, Minnesota on October 30, 2020:  “I promise you, you have my word, if you make less than $400,000 a year, you won’t pay a penny more in taxes.”

Joe Biden in Milwaukee, Wisconsin on October 30, 2020: “I give you my word as a Biden, if you make less than $400,000 -- if I’m elected president -- you’re not going to see a penny of your taxes go up, not a penny.”

Kamala Harris in Houston, Texas on October 30, 2020: “Joe Biden says we will not raise taxes on anyone that makes less than $400,000 a year.”

Kamala Harris in Fort Worth, Texas on October 30, 2020: “Which is why Joe Biden is committed to not raising taxes ever on anyone making less than $400,000 a year.”

Joe Biden in Detroit, Michigan on October 31, 2020: “Under my plan if you make less than $400,000 I guarantee you're not going to pay a penny more in taxes.”

Joe Biden in Flint, Michigan on October 31, 2020: “Under my plan, if you make less than $400,000 a year, you’re not going to pay a penny in additional taxes.”

Joe Biden on Twitter, November 1, 2020: "Under my tax plan, no one making under $400,000 will see their taxes go up."

Joe Biden in Cleveland, Ohio on November 2, 2020: “Under my plan, if you make less than $400,000, you won’t pay a single penny more in taxes. You have my word on it.”

Joe Biden in Beaver County, Pennsylvania on November 2, 2020: “We’re not going to raise taxes on anybody making less than 400,000 bucks a year.”

Joe Biden in Pittsburgh, Pennsylvania on November 2, 2020: "Under my plan I commit to you no one making less than 400 grand is going to see a penny in taxes raised."

Kamala Harris in Pittsburgh, Pennsylvania on November 2, 2020: “Let me be clear, Joe and I will not increase taxes on anyone making under $400,000 a year, period.”

Joe Biden in Pittsburgh, Pennsylvania on November 2, 2020: “Under my plan, as Kamala said, if you make less than 400,000 bucks, you’re not going to pay a penny more in taxes.”

Kamala Harris in Detroit, Michigan on November 3, 2020: “That’s why Joe says we’re not passing any taxes on anybody making less than $400,000 a year."

Kamala Harris on Twitter,  November 11, 2020: “As president, @JoeBiden will make corporations and the wealthiest finally pay their fair share—and he won’t ask a single person making under $400,000 per year to pay a penny more in taxes."

Kamala Harris on Twitter, November 21, 2020: “Let’s be clear: if you make under $400,000 a year, you won’t pay a penny more in taxes under a Biden-Harris administration.”


Biden Says Tax Hikes "Will not slow the economy at all."

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Friday, April 2nd, 2021, 3:50 PM PERMALINK

Today at a press briefing President Joe Biden said:

"Raising taxes, the studies show, will not slow the economy at all. It will make the economy function better and will create more energy."

Huh?

WATCH:


NYT in 1979: Elimination of Stepped Up Basis is "a nightmare of paperwork" and "impossibly unworkable"

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Monday, March 29th, 2021, 4:55 PM PERMALINK

Eliminating stepped-up basis was "a nightmare of paperwork" and "impossibly unworkable" -- so why is Biden doing it again?

President Biden and congressional Democrats want to impose a second Death Tax: They plan to eliminate step-up in basis, which would result in a mandatory capital gains tax at death -- separate from, and in addition to -- the current Death Tax.

But this has already been tried, and it failed: In 1976 congress eliminated stepped-up basis but it was so complicated and unworkable it was repealed before it took effect.

As noted in a July 3, 1979 New York Times article, it was "impossibly unworkable":

Almost immediately, however, the new law touched off a flood of complaints as unfair and impossibly unworkable. So many, in fact, that last year Congress retroactively delayed the law's effective date until 1980 while it struggled again with the issue.

As noted by the NYT, intense voter blowback ensued:

Not only were there protests from people who expected the tax to fall on them -- family businesses and farms, in particular -- bankers and estate lawyers also complained that the rule was a nightmare of paperwork.

So why is Biden trying to do this again? This will impose a steep tax increase and paperwork nightmare for small businesses, farms, and families. It may also violate his own pledge against raising any tax on any American making less than $400,000.

Washington Post reporter Jeff Stein tweeted recently that "the president is personally invested in addressing the stepped-up basis issue".

In a piece titled "This Biden Tax Hike Hike Will Hit Mom & Pop Hard" tax lawyer Robert W. Wood writes:

Under current tax law, assets that pass directly to your heirs get a step-up in basis for income tax purposes. It doesn’t matter if you pay estate tax when you die or not. For generations, assets held at death get a stepped-up basis—to market value—when you die. Small businesses count on this.

Wood notes:

Biden's proposal would tax an asset's unrealized appreciation at transfer. You mean Junior gets taxed whether or not he sells the business? Essentially, yes. The idea that you could build up your small business and escape death tax and income tax to pass it to your kids is on the chopping block. Biden would levy a tax on unrealized appreciation of assets passed on at death. By taxing the unrealized gain at death, heirs would get hit at the transfer, regardless of whether they sell the asset.

As reported previously by CNBC:

“When someone dies and the asset transfers to an heir, that transfer itself will be a taxable event, and the estate is required to pay taxes on the gains as if they sold the asset,” said Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center. 

In its analysis of Biden's tax plan, Tax Policy Center says the step-up in basis proposal mirrors a proposal described in an Obama-Biden 2016 Treasury Department document. This document confirms that Biden will force a capital gains tax payment immediately upon transfer of an asset after death of a loved one:

Under the proposal, transfers of appreciated property generally would be treated as a sale of the property. The donor or deceased owner of an appreciated asset would realize a capital gain at the time the asset is given or bequeathed to another.

The amount of the gain realized would be the excess of the asset's fair market value on the date of the transfer over the donor's basis in that asset. That gain would be taxable income to the donor in the year the transfer was made, and to the decedent either on the final individual return or on a separate capital gains return.

On top of all that, Biden also vows to impose capital gains tax increases just as America digs out from the pandemic. He said "every single solitary person" will pay capital gains taxes at ordinary income tax rates. He will also double the top rate to 40 percent, highest since Jimmy Carter in 1977.

Coffee photo created by user18526052 - www.freepik.com

Photo Credit: Freepik/user18526052


Biden May Impose Vehicle Miles Traveled Tax in Violation of Tax Pledge

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Friday, March 26th, 2021, 1:08 PM PERMALINK

Norquist: "Biden must fire Buttigieg, repudiate his statement or admit that he was elected on a lie."

President Biden pledged to every American making less than $400,000 that he would not raise 'a single penny' of any of their taxes, or impose any 'new' taxes on them. But today his Transportation Secretary said the administration is eyeing a vehicle miles traveled tax. This tax would violate Biden's pledge.

CNBC asked him what he thought of the tax. Buttigieg said:

"I think that shows a lot of promise. If we believe in that so-called user pays principle, the idea that part of how we pay for roads is you pay based on how much you drive, the gas tax used to be the obvious way to do it, it's not anymore, so a so-called vehicle miles traveled tax or mileage tax, whatever you want to call it, could be a way to do it."

If Biden intends to keep his pledge, he must immediately and loudly disavow this tax. 

"Biden won the 2020 election promising that he would never raise taxes on anyone earning less than $400,000 a year and would never impose a new tax," said Grover Norquist, president of Americans for Tax Reform. "Now his Secretary of Transportation announced he wants to both tax Americans earning less than $400,000 and do so with a new tax. Biden must fire Buttigieg, repudiate his statement or admit that he was elected on a lie."

Biden and Vice President Harris made the pledge on at least 56 different occasions. The pledge also forbids the imposition of any 'new' taxes on Americans making less than $400,000. So the vehicle miles traveled tax would violate the Biden-Harris pledge both ways. 

Watch the Buttigieg video here or below:


Pages

×