President Biden’s tax proposal on unrealized gains could hit millions of Americans:

“The Biden tax will create new complexity in the tax code and expand the power of the IRS. It will wreak havoc on the economy and likely grow to hit far more Americans than intended,” writes Americans for Tax Reform’s Isabelle Morales in a new op-ed for The Hill. 

CLICK HERE to read the full op-ed.

KEY TAKEAWAYS:

Biden’s proposal would drastically expand the powers of the IRS.

• “With the IRS’s history of discrimination and malpractice, it should be concerning to have agents collect this information. In the case of a leak, which happens often at the IRS, taxpayers could be subject to burglary or, at the very least, a gross invasion of privacy.”
• “In order to enforce this tax, the IRS would have to be given vast new powers to value the assets of taxpayers. This would be an extremely invasive and difficult task.”

This tax would hit millions of Americans.

• “While Democrats claim this plan would only hit 700 taxpayers, it’s likely that this tax would grow to hit millions of Americans.”
• “Congress enacted the Alternative Minimum Tax (AMT) in 1969. They targeted 155 people with adjusted gross income above $200,000 […] But the AMT grew so large that, by 2010, 30 million Americans (20 percent of filers) were in the crosshairs of the tax. Congress then had to step in and reduce the scope of the tax.”
• “For those who keep their assets in the U.S., this tax would still lead to a reduction in new investment in the economy, harming working families via wage reduction.”

Democrats ignore success of the Tax Cuts and Jobs Act.

• “While the left insists that we must tax unrealized gains to ensure that the wealthy ‘pay their fair share,’ the tax code is already steeply progressive.”
• “According to the Congressional Budget Office, the top 1 percent of earners paid 41.7 percent of income taxes in 2018 and 25.9 percent of federal taxes. The top 20 percent of earners paid 90.9 percent of income taxes and 69.8 percent of all federal taxes.”

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