Biden should propose federal tax hikes on the rich in 2021-22

[Suburbia]

He should do it.

He won a mandate, he won the popular vote and the Electoral College.

Yes, the U.S. Senate may be 50-50 D+VP Harris tie breaking vote or 52-48 R, and a slim House majority for Democrats, but Biden should propose major tax hikes on the rich.

The Ways and Means Committee and the Finance Committee should draft bills to pass a tax effective January 2023.

This would be a perfect opportunity for Josh Hawley to show his "populist appeal" and tax the NBA/NFL, Facebook, etc.

Hawley and AOC can come together on this.

[T'Chenka]

He absolutely SHOULD, but he absolutely WON'T.

This is Joe Biden we're talking about, not Bernie Sanders.

[Amenhotep Bakari-Sellers]

He absolutely SHOULD, but he absolutely WON'T.

This is Joe Biden we're talking about, not Bernie Sanders.

.
What, any tax increase can go thru Reconciliation, just like 2017 tax cuts went thru Reconciliation 😃 Rs can't 🛑 Reconciliation

[Hermit For Peace]

In my reverie I would like to see businesses and rich people step up to the plate and use their money for good.

Instead of government taxing the hell out of them and then turning around and wasting that money, somehow rich folks need to find a way to help others in bigly ways. That's the world I want to live in.

Like I said, this is in my reverie moments. Unless the money being taxed is used for specific good to help the general population, then it's a waste. Greedy rich people or greedy government, what is the difference. There is no more room for greed or waste.

[WD]

Agreed. The top marginal rate should be somewhere around 50%, specifically for those making over $1 Million.

[brucejoel99]

He should also fight to close tax loopholes & empower the IRS by buttressing their enforcement budget, too.

[ProudModerate2]

Some increase, yes.
Nothing extremely drastic though, or it will probably fail.

[Bootes Void]

Hawley doesn't support tax increases. Anyways if Biden wants money for federal coffers if he ends up facing opposition over tax increases them he boost IRS enforcement. That's a very good thing to do

[True Federalist (진정한 연방 주의자)]

Some increase, yes.
Nothing extremely drastic though, or it will probably fail.

Even that will require the Democrats to win both Senate seats., and it'll likely have to be done by limiting deductions for the wealthy than by raising rates.

[Amenhotep Bakari-Sellers]

This proposal is dependent on GA Runoffs going blue, as well as WI, PA and NC going D in 2022, to build the good economy that Obama left us, but Reconciliation nulifies the minority party filibuster when it comes to tax hikes or tax cuts.

All you need is 51 and Biden will raise taxes on the rich if the won both GA seats

[dead0man]

He should do it.

He won a mandate, he won the popular vote and the Electoral College.

wait....what?  Winning less than 50% of the pop vote and losing seats in Congress is 100% not a mandate and it's weird that someone would try and say that with a straight face.

[John Dule]

He should do it.

He won a mandate, he won the popular vote and the Electoral College.

wait....what?  Winning less than 50% of the pop vote and losing seats in Congress is 100% not a mandate and it's weird that someone would try and say that with a straight face.

Biden got 51% of the popular vote, though. And we all know that 51% means you get to do whatever you want.

[dead0man]

He should do it.

He won a mandate, he won the popular vote and the Electoral College.

wait....what?  Winning less than 50% of the pop vote and losing seats in Congress is 100% not a mandate and it's weird that someone would try and say that with a straight face.

Biden got 51% of the popular vote, though. And we all know that 51% means you get to do whatever you want.

oh sh**t, I thought he didn't get to 50.  My mistake.

[Suburbia]

He absolutely SHOULD, but he absolutely WON'T.

This is Joe Biden we're talking about, not Bernie Sanders.

Biden does support raising taxes, he said that taxes are patriotic, remember when he said that against Mitt Romney in 2012?

[Suburbia]

In my reverie I would like to see businesses and rich people step up to the plate and use their money for good.

Instead of government taxing the hell out of them and then turning around and wasting that money, somehow rich folks need to find a way to help others in bigly ways. That's the world I want to live in.

Like I said, this is in my reverie moments. Unless the money being taxed is used for specific good to help the general population, then it's a waste. Greedy rich people or greedy government, what is the difference. There is no more room for greed or waste.

Yes, LeBron James et. al. should pay up and put the talk into action.

[Torie]

What kind of tax increases, and their degree of magnitude, do you guys have in mind?

[Mr.Phips]

What kind of tax increases, and their degree of magnitude, do you guys have in mind?

I would think going back to 39.6% from 37% on those making over $400k and maybe  taxing dividends and capital gains as ordinary income after that point.  I would support throwing in indexing of capital gain basis in exchange for that.

[Arizona Iced Tea]

He has a mandate to propose whatever he wants. Democrats in Congress do not have the mandate to pass it after losing 10+ seats and having the slimmest House majority since 1942, (will be 1882 after Richmond and Fudge leave). It also won't go anywhere because if Republicans hold the senate which they likely will, no way Mitch brings it too the floor.

[Torie]

What kind of tax increases, and their degree of magnitude, do you guys have in mind?

I would think going back to 39.6% from 37% on those making over $400k and maybe  taxing dividends and capital gains as ordinary income after that point.  I would support throwing in indexing of capital gain basis in exchange for that.

Well that hardly seems to fit into the "bold progressive" category.

One problem with taxing capital gains as ordinary income for the top 1% or whatever, is that it creates substantial economic inefficiency beyond what we already have now. Nobody absent compelling circumstances would sell assets and recognize capital gains. Instead they would borrow against such appreciated assets if need be, and wait until death (including the death of a spouse), when you get a step up in basis, and the unrecognized capital gains disappear as if by magic. That is why I never sell highly appreciated real estate myself. I have owned one property now for 41 years in Los Angeles.

Because dividends and capital gains are really the same thing economically, one thought is to reduce the tax rate on dividends and increase it on capital gains, so that the two have the same rate - at least for publically traded entities. As it is, many companies buy back their shares in lieu of dividends, the idea being the stock will increase more in value, and so you can sell some shares in lieu of receiving dividends, and thus have capital gain income rather than ordinary dividend income. We call that in the trade a tax loophole.

[Mr.Phips]

What kind of tax increases, and their degree of magnitude, do you guys have in mind?

I would think going back to 39.6% from 37% on those making over $400k and maybe  taxing dividends and capital gains as ordinary income after that point.  I would support throwing in indexing of capital gain basis in exchange for that.

Well that hardly seems to fit into the "bold progressive" category.

One problem with taxing capital gains as ordinary income for the top 1% or whatever, is that it creates substantial economic inefficiency beyond what we already have now. Nobody absent compelling circumstances would sell assets and recognize capital gains. Instead they would borrow against such appreciated assets if need be, and wait until death (including the death of a spouse), when you get a step up in basis, and the unrecognized capital gains disappear as if by magic. That is why I never sell highly appreciated real estate myself. I have owned one property now for 41 years in Los Angeles.

Because dividends and capital gains are really the same thing economically, on thought is to reduce the tax rate on dividends and increase it on capital gains, so that the two have the same rate - at least for publically traded entities. As it is, many companies buy back their shares in lieu of dividends, the idea being the stock will increase more in value, and so you can sell some shares in lieu of receiving dividends, and thus have capital gain income rather than ordinary dividend income. We call that in the trade a tax loophole.

Could this be mitigated by allowing companies a tax deduction for dividends paid and allowing for inflation indexing for basis in capital gains?

[Torie]

What kind of tax increases, and their degree of magnitude, do you guys have in mind?

I would think going back to 39.6% from 37% on those making over $400k and maybe  taxing dividends and capital gains as ordinary income after that point.  I would support throwing in indexing of capital gain basis in exchange for that.

Well that hardly seems to fit into the "bold progressive" category.

One problem with taxing capital gains as ordinary income for the top 1% or whatever, is that it creates substantial economic inefficiency beyond what we already have now. Nobody absent compelling circumstances would sell assets and recognize capital gains. Instead they would borrow against such appreciated assets if need be, and wait until death (including the death of a spouse), when you get a step up in basis, and the unrecognized capital gains disappear as if by magic. That is why I never sell highly appreciated real estate myself. I have owned one property now for 41 years in Los Angeles.

Because dividends and capital gains are really the same thing economically, on thought is to reduce the tax rate on dividends and increase it on capital gains, so that the two have the same rate - at least for publically traded entities. As it is, many companies buy back their shares in lieu of dividends, the idea being the stock will increase more in value, and so you can sell some shares in lieu of receiving dividends, and thus have capital gain income rather than ordinary dividend income. We call that in the trade a tax loophole.

Could this be mitigated by allowing companies a tax deduction for dividends paid and allowing for inflation indexing for basis in capital gains?

Yes, and that idea has often been bandied about. It has a lot of merit to it, but I don't recall how it would impact revenues.

[ProudModerate2]

He should do it.
He won a mandate, he won the popular vote and the Electoral College.

wait....what?  Winning less than 50% of the pop vote and losing seats in Congress is 100% not a mandate and it's weird that someone would try and say that with a straight face.

Biden got 51% of the popular vote, though. And we all know that 51% means you get to do whatever you want.

oh sh**t, I thought he didn't get to 50.  My mistake.

Where have you been the last 1-1/2 months?
This is Atlas ... you know, "the election numbers" place.

[dead0man]

He should do it.
He won a mandate, he won the popular vote and the Electoral College.

wait....what?  Winning less than 50% of the pop vote and losing seats in Congress is 100% not a mandate and it's weird that someone would try and say that with a straight face.

Biden got 51% of the popular vote, though. And we all know that 51% means you get to do whatever you want.

oh sh**t, I thought he didn't get to 50.  My mistake.

Where have you been the last 1-1/2 months?
This is Atlas ... you know, "the election numbers" place.

I'm not as into the numbers as most people here, but that's not a good excuse for not knowing Biden got to 51.  That's just me being dumb.

[Amenhotep Bakari-Sellers]

Tax increases puts money back into social programs, that were taken out during Trump tax cuts to oil subsidizies in 2017, that govt needs to do during a Pandemic, let's all remember this

[Pericles]

Yes and he's promised to do so, but unless he wins the Senate he can't actually pass it. Even without a Democratic Senate he should propose it though, because most people agree with his position and not the Republican one.