Most Americans are still unaware of the massive tax hikes that Joe Biden plans to impose on them if he manages to stay in office for a second year. Starting immediately in 2025, Biden plans to raise taxes by a whopping $5 trillion across all sectors of the economy. The regime is trying to keep this quiet for now because only a crazy person would vote to give themselves a huge tax increase. Wall Street is taking notice, however, and nervous investors are starting massive stock selloffs to avoid giving most of their wealth to the federal government next year.
Warren Buffett raised eyebrows a few days ago when he sold more than 100 million shares of Apple. This sent shockwaves through the investment market. Buffett has been very vocal publicly about how he remains bullish on Apple, and how he believes the stock price will only continue to go up in the coming years. Why sell off so many shares all of a sudden?
The reason is simple. Buffett’s Berkshire Hathaway stands to lose tens if not hundreds of billions of dollars in new taxes if they hold onto the stock and Joe Biden ends up in the White House for a second term. Would you risk a fortune that size if you believed there was a chance the Democrats would steal another presidential election?
For those who haven’t heard yet, Biden’s budget plan involves raising taxes on small businesses, corporations, capital gains and dividends, all income tax brackets, and energy. He also plans to impose a second Death Tax on top of the first Death Tax, so the federal government can inherit most of your wealth instead of your heirs.
The worst tax increase out of all of those, depending on who you ask, is the capital gains tax rate. Those are taxes that you pay on the profits of an asset when you sell it. It can refer to profits on home equity, a stock portfolio, bonds, or other assets.
The current capital gains rate in America is 21%. The average capital gains tax rate for the entire world is 18.78%. Even Red China only taxes capital gains at 20%. So, while America’s current capital gains rate is slightly higher than most of the world’s nations, Joe Biden wants to send it into the stratosphere.
His planned capital gains rate starting next year will be 44.6%, the highest it’s been in America in more than a century. When combined with state capital gains rates, investors in states like California and New York stand to lose more than half their profits taxation when they sell them. In California, people will pay a combined federal and state capital gains rate of 59%. In New York, the combined rate will be 53.4%.
If you’re a baby boomer and you paid off your home over a 30-year mortgage in one of those states, the government could take more than half of your equity if you decide to sell it next year.
The reason for Biden’s reckless tax policy—combined with runaway inflation—is especially infuriating. White Americans are more likely to own their homes or a stock portfolio. The regime openly admits that the capital gains tax hike is intended as a form of “reparations,” to redistribute white wealth to minorities.
That’s why these tax hikes could potentially cause a stock market crash before the end of the year. If investors start to panic at the prospect of losing half their investment cash to Joe Biden’s planned wealth confiscation scheme, it could cause a selloff that easily gets out of control.
