What Biden’s New $44.6% Capital Gains Tax Means for YOU
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Okay. Joe Biden is calling for the highest capital gains tax rate in the history of the country. 44 .6%. Now, if you live in certain states, that tax rate would be above 50%. California would be 59%. New Jersey 55 .3%. Oregon 54 .5%. Minnesota.
54 .4 % in New York State, 53 .4%. 44 .6%. Now capital gains taxes when it comes to stocks, mutual funds, ETFs, it’s a form of double taxation. Corporations are taxed. Then the profits are sent off. It’s in essence, you’re getting taxed twice.
when it comes to stocks, bonds. And again, I don’t really, I’m trying to put this into words for people here. What this would do to the overall climate here in the United States as far as investment is concerned, it would wreck it. To put this in a proper perspective, China’s capital gains rate is 20%.
In Europe, it’s 18 percent on average. 18 percent. If something like this goes through, I’d actually have to start up a division at Markowski Investments to help people get citizenship outside the country. It’s patently absurd is what we’re looking at. And again, this is proof once again that that the Biden people.
are, for the Biden people, are essentially the Obama people.
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What would make me say that? Well, let me explain this to you. I’m gonna go back to a column that I wrote back in May of 2008, defying economic gravity. I was basically, this again, at the point time of this, this was Hillary Clinton versus Obama in the primary. Again, Barack Obama’s economic.
plan. I dubbed it Red Dawn. I dubbed it Red Dawn because again, it was just patently absurd. It was far leftist communist crap. And to me, one of the most interesting exchanges between Barack Obama and Hillary Clinton happened in a debate that was done on ABC. And Charlie Gibson was the moderator of this debate.
And Charlie Gibson asks Obama a question. This is directly from it. You would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, I certainly would not go above what existed under Bill Clinton, which was 28%. It’s now 15%. That’s almost a doubling if you went to 28%, but actually Bill Clinton in 1997 signed legislation.
that dropped the capital gains rate to 20%. And Obama’s reply was, right. George Bush has taken it down to 15%. Obama responds, right. And in each instance, when the rate dropped, revenues from the tax increased.
every time the capital gains tax was lowered, revenues to the government went up. The government took in more money. And in the 1980s, when the tax was increased to 28%, the revenues went down. So Charlie Gibson asked Obama, why raise it at all? Especially given the fact that 100 million people in this country own stock and would be affected.
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Well, this is Obama’s response. Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness.
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Again, this is the early signs of woke, again, 2008. So according to Barack Obama’s logic, this is back in 2008, even if it ends up costing the United States treasury funds and lost revenue, he would raise the capital gains tax anyway to punish evil people, my clients, all my clients, evil, making money, right?
who risked and invested their funds in a prudent manner, all in the interest of fairness. Actually watched one of Obama’s guys today on CNBC praising the Biden budget for being prudent. You will have an exodus. Businesses will leave. Companies will leave. Wealthy people will leave. You’re seeing more.
and more of this around the globe. Italy just instituted the same visa program that Portugal and Greece and some other countries have been doing, looking to entice people to move there.
Again, you have to factor taxation into your risk model. Why take a risk if the government is going to take half of everything that you recoup? Reminder, you could only write off $3 ,000 in losses. Why do that?
Again, this is an absolute disaster. Every single time they come up with this nonsense, it hurts the country. Again, we talked about during the Obama years, tax inversions, where companies were actually moving out of the country, being acquired by a smaller company, and I don’t know, Dublin, Ireland, because they could avoid paying the ridiculous corporate taxes here in the United States. Do you understand what’s gonna happen if something like this goes through? Can you fully get your arms around something like this? Watchdog on wallstreet .com.