While the Democrats are known for appeasing global corporations, a new proposal for the tax plan has gained some significant traction since Senator Kyrsten Sinema opposed raising tax rates on corporations and individuals to pay for President Joe Biden’s spending bill. Instead, the proposal would tax capital gains, which surprisingly caused entrepreneur and billionaire Elon Musk to criticize the same party that has helped him countless times.
According to the New York Times, “Billionaires could be taxed on unrealized capital gains on their liquid assets, Democratic officials said yesterday. It would affect people with $1 billion in assets or those who have reported at least $100 million in income for three consecutive years, according to news reports. That would ensnare perhaps 700 taxpayers — or the wealthiest 0.0002 percent — but Democrats hope it would generate at least $200 billion in revenue over a decade. It would cover not only stocks, but also other assets like real estate.”
Using a template from another tweet, Musk shared:
Dear (Senator of Congress Member’s name),
I expect you to oppose the Wyden proposal to tax unrealized capital gains. Although the proposal targets billionaires and not myself, the government of elected representatives have a track record of scope creep when writing new taxes. I anticipate that any new unrealized capital gains taxes will slowly make their way down to middle class retirement investments over the next several years. It will start with billionaires, then eventually millionaires, then the modest investments will get hit possibly within a decade. Although principle residences and holdings in 401K plans apparently will be excluded, the Wyden proposal takes new tax hikes a step closer to imposing unrealized capital gains tax on the average investor.
Thank you for your support.
Musk also wrote, “Exactly. Eventually, they run out of other people’s money and then they come for you.”
It wasn’t just Musk either as Tilman Fertitta, owner of the Houston Rockets, warned that if the plan was passed that it could destroy capitalism in America. He said it would “make me not build as much because I won’t have the ability that creates so many more jobs. And then you’re paying so many different taxes. Every employee pays payroll taxes, all your sales taxes, all the taxes they pay. It’s truly a mistake. It’s a social way of not doing things in this country. It’s the European way. Our great capitalism will slowly come to an end. And do I believe in taxes to make our country great? Absolutely. I don’t think a balance sheet billionaires tax is the way to do it. Do it on income. You can’t do it on balance sheets. It’ll never be right.”
This piece was written by Jeremy Porter on October 27, 2021. It originally appeared in DrewBerquist.com and is used by permission.
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