The host of Fox Business Network Larry Kudlow warned that President Biden's massive tax hike plan, particularly affecting capital gains, inheritances and a cash injection to the Internal Revenue Service, will spell disaster for American workers and global competitiveness in the United States.
It is probably the highest capital gains tax in history, I'm not too sure about that but I know it was also the highest in the past 50 years or more. 43.4%, added with the state tax that gets you to over 50%, well over 50%; then, of course, corporate cap gains close to 60%.
Nobody in Europe is even close to that. The average is 18%. Not even Bernie Sanders the Swedish Swedes, which is 30%. China is 20%. By the way, China is 20%. By the way, China's 25% corporate tax would be lower than our 28%. We will always be above everyone.
The combination of jacking up taxes on companies and their profits and gains, or if you sell a small business, you pay capital gains, or sell a farm or ranch.
By the way, Team Biden may gradually eliminate the stepped-up basis for capital gains around the death tax, meaning heirs would immediately have to sell assets. That is a plan the Penn-Wharton School claims would raise $113 billion $.
With respect, I have my doubts. I think it's a terrible policy. So, yes, taxes will be lamified. We are attacking investment which is the key to the blue-collar middle class living standards and incomes. They are attacked. An attack on our Competitiveness in the global race for capital, Biden's policies will certainly throw a wet blanket on our booming economy. Now I have more of those.
Today, comes the word that it isn't enough. Team Biden wants a good $80 billion to beef up the IRS audits on high earners. So I quote from this morning's New York Times, my friend Jim Tankerly, Alan Rapaport, and I quote, the administration will see the efforts coupled with new taxes proposals on corporations and rich a way to level the tax playing field between basic American workers and wealthy earners.
The $80 billion in the proposed funding would be an increase of 2 3 over the agency's entire budget for the last decade.
I hope that is the most fruitful thing to ever do, Mr. President. From time to time, people searching high and low for revenues in order to harass IRS agents. This time $80 billion is a really big number. One former IRS Commissioner said that 25 would be enough. I don't know if any of them is useful.
Here is the last laugh of the week. This is wonderful, team Biden believes that it is $800 billion to raise new revenue from tax revenues.
But I haven't seen this movie before. Believe me, folks, they're not going to get half the money so much. They might not even get a third of that. It has failed numerous times and was utterly tried.