Who Will Pay for Free Money Handouts?
Treasury Secretary Janet Yellen said Sunday that the Biden administration hasn’t decided whether to pursue a wealth tax, but will likely issue proposals to address the swelling federal budget deficit.
A group of progressive lawmakers including Sen. Elizabeth Warren (D., Mass.) proposed March 1 a so-called ultra-millionaire tax. The legislation would create a 2% annual tax on the net worth of households and trusts between $50 million and $1 billion and an additional 1% surtax on those above $1 billion.
Asked about the idea on ABC’s “This Week with George Stephanopoulos,” Ms. Yellen said it isn’t something President Biden himself has proposed, but that the administration might consider it.
“That’s something that we haven’t decided yet and can look at,” Ms. Yellen said. She noted that Mr. Biden proposed higher taxes on corporations, on some individuals and on capital gains or dividend payments during his 2020 presidential campaign. “Those are alternatives that address—that are similar in their impact to a wealth tax.”
Ms. Yellen said the U.S. government needs to rein in the deficit “in the longer run” and that she expects the Biden administration to take steps to do so.
Biden Will Consider Anything
Biden may have not decided yet but let's be clear about this. Biden will consider anything that is on of off the table at the moment.
Here's the deal.
If Democrats can pass it, Biden will sign it.
Pretty much it's that simple. I suspect a wealth tax will not pass. A wealth tax is may not be constitutional depending on how it's structured, but that won't stop them.
However, one or two Democratic Senators would not sign it and that would be the end of it. That is the main reason Biden is officially "undecided".
He intends to decide nothing but will rally around any and every tax hike he can get.
Rein in the Deficit
Yellen's phrase "rein in the deficit" has zero to do with cutting spending and 100% to do with raising taxes.
Democrats are after your pocket book and the more they succeed, the more likely they lose the House and Senate in the midterms.