Author Topic: Here’s why Biden’s ‘billionaire tax’ plan is almost certainly unconstitutional  (Read 119 times)

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Here’s why Biden’s ‘billionaire tax’ plan is almost certainly unconstitutional
By Brad Polumbo
March 16, 2023 06:58 AM

Critics have widely panned President Joe Biden’s latest budget proposal for its reckless spending and massive tax hikes . But one criticism that’s flown under the radar is that Biden’s budget also includes one policy that’s blatantly unconstitutional.

The president is proposing a “billionaire minimum tax” of 25% that would apply to “appreciated assets.” That’s essentially a tax on unrealized capital gains. What does that mean? Well, right now, if you own a stock that increases in value, you are only taxed on that increase in value if and when you sell the stock. But by taxing unrealized gains, Biden’s billionaire tax would tax rich people on their hypothetical increases in wealth even though they haven’t actually sold the stocks and cashed in on them yet.

That’s deeply flawed as a matter of policy. But more fundamentally, it’s almost certainly illegal under the Constitution.

Why? Well, as economic historian Phil Magness explains for the American Institute for Economic Research, the Constitution does give Congress the power to levy taxes, but direct taxes must be apportioned among the states relative to population. (This proposal does not do so.)

That’s why the income tax was originally struck down by the Supreme Court and required a constitutional amendment before it could eventually become law. Yet while that amendment, the 16th Amendment , carved out an exception for an income tax, it did not remove the rules on taxes overall, so they still apply for direct taxes other than the income tax.

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The president is proposing a “billionaire minimum tax” of 25% that would apply to “appreciated assets.”

That just ain't going to happen. The phones in DC are almost certainly ringing off the hooks by now as prominent Dims and RINO's are being called and ordered to appear at various corporate headquarters to get their marching orders.

Yes,it DOES look like an attempt to create another "Economic Depression" in already in progress,but NO plan will EVER include actually making billionaires pay any extra.
« Last Edit: March 16, 2023, 05:28:42 pm by sneakypete »
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