Old Joe Biden is at it again. His latest economic policy position is one designed to slow economic growth across the USA. Biden wants to double the tax rate on capital gains by pushing that rate to the highest level since World War II. It's a position that shows that managing the nation's economy is well beyond the capabilities of Old Joe.
Think about it. The single most important item for encouraging economic growth is increasing the level of investment. Investment leads to long term improvement. For example, an extra 100 million dollars in consumption by consumers gives a one-time shot in the arm in the economy, but the same 100 million dollars invested in a new factory provides ongoing output for years to come as well as many new jobs for employees. It turns the 100 million from a one-time event into one that provides benefits for years and years.
Capital gains is the tax on investments. Raising the taxes on investments reduce the potential return and it will mean that America will have less investments. That means less economic growth. Biden is trying to bring back the economic stagnation of the Obama years.
Raising the capital gains tax means that it will just be that much harder for people who have little to become wealthy. Start a business and be successful and the government will take away half of what you build if Biden gets his way. For people like Biden and many Democrats who are already wealthy, it wouldn't matter that much. For the bulk of people who are not wealthy, however, Biden is pushing something that would just close off the potential path to wealth. It shows an amazing lack of concern for the future opportunity of America's poor and middle class. The Democrats truly are the party of the wealthy and the very poor.
Think about it. The single most important item for encouraging economic growth is increasing the level of investment. Investment leads to long term improvement. For example, an extra 100 million dollars in consumption by consumers gives a one-time shot in the arm in the economy, but the same 100 million dollars invested in a new factory provides ongoing output for years to come as well as many new jobs for employees. It turns the 100 million from a one-time event into one that provides benefits for years and years.
Capital gains is the tax on investments. Raising the taxes on investments reduce the potential return and it will mean that America will have less investments. That means less economic growth. Biden is trying to bring back the economic stagnation of the Obama years.
Raising the capital gains tax means that it will just be that much harder for people who have little to become wealthy. Start a business and be successful and the government will take away half of what you build if Biden gets his way. For people like Biden and many Democrats who are already wealthy, it wouldn't matter that much. For the bulk of people who are not wealthy, however, Biden is pushing something that would just close off the potential path to wealth. It shows an amazing lack of concern for the future opportunity of America's poor and middle class. The Democrats truly are the party of the wealthy and the very poor.
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