Business / Finance / Politics

Biden’s Killer Double Death Tax

tax

At the 11th hour before Memorial Day weekend, the Biden administration released their proposed fiscal year 2022 budget outlining the administration’s proposed spending and tax policies for the coming year. Perhaps the reason for the release timing was the tax side of the budget which relies on hiking taxes on many family-owned and operated businesses and is starting to cause heartburn amongst many rank and file Democrats in Congress.

Family businesses are the lifeblood of their communities. These family businesses in towns all across the country help to fund the local little league baseball teams, provide good-paying jobs, and hold communities together. When family businesses must be sold off to pay taxes, oftentimes, they are gobbled up by huge multinational corporations. When family businesses disappear, the jobs these businesses create on main street and the community enrichment they provide disappears as well. As it stands now, nearly 70% of family businesses don’t survive to the second generation, and this statistic has likely accelerated over the past two years with the closure of a record number of small businesses.

The Biden budget would make this statistic even grimmer by imposing a new double death tax through capital gains. Here’s how it would work. If your parents or grandparents started a small business from the ground up with almost no “basis” and worked their entire lives to grow that business, they could now be subject to capital gains taxes on the appreciation of the business over their entire lifetimes as if a profitable sale had occurred at death. Family businesses, farms, and ranches oftentimes appear valuable on paper, but their value is almost entirely tied up in land, equipment, and inventory. This means when Uncle Sam comes knocking for over 50% of the business upon the death of a business owner, these family businesses are forced to fire workers, sell off equipment, and in the worst cases, close the doors permanently to pay death taxes. Biden’s new double death tax would accelerate the dissolution of family businesses, farms, and ranches by imposing this second death tax at a rate as high as 39.6%, which would come in addition to the current 40% estate tax or “death tax” that is already on the books. This new killer double death tax would almost certainly be an insurmountable hurdle for family businesses hoping to pass to the next generation of ownership.

 The origin of the current death tax goes back to WWI, when it was imposed only to raise funds for the war. Now over 100 years later, the estate tax remains the last survivor of the Great War as it has remained on the books ever since. The Joint Economic Committee has calculated that the estate tax has drained over $1 trillion from the economy in deadweight loss since its inception, destroying businesses and jobs along the way. But the death tax serves a deeper purpose in the push for socialism in America. Karl Marx recognized that breaking the bond entirely between parents and their children makes society more dependent on the state. That’s why the third plank of Marx’s Communist Manifesto calls for “the abolition of all rights of inheritance.” For the socialist left, the death tax is not just a tool to raise revenue; it is a means to eventually centralize all production entirely in the hands of the government.

 The 2017 Tax Cuts and Jobs Act signed by President Trump protected many more businesses from the nightmare of the death tax, but a handful of squishy Republican Senators stopped short of fully repealing the tax as called for by President Trump and the House. Today, a few short years later, Democrats in Congress are marching in the opposite direction, hoping not only to reverse the progress made in the Tax Cuts and Jobs Act but also pushing to create a new second tax at death. Destroying the American Dream is only collateral damage towards their end of centralizing power and funding more government spending programs.

Democratic leadership now has the difficult task of satisfying liberal activists and the party’s ivory tower academic wing who have been tone-deafly calling for death tax rates up to 77%, even as the economy, limping towards recovery, remains on unsteady footing. The Democratic party is showing signs of splitting entirely on the issue of taxes, though, as some rural state Democrats are in full panic mode that their votes in favor of the Biden double death tax would spell doom for their 2022 election hopes. In the House of Representatives, an AMAC Action-supported bill to repeal the death tax entirely has the support of almost 150 members already, including lead Democratic sponsor Sanford Bishop (D-GA). Even Democrat Sanford Bishop understands that the death tax kills jobs and businesses. “I have always believed that the death tax is politically misguided, morally unjustified, and downright un-American,” said Rep. Bishop.  “It undermines the life work and the life savings of farmers and jeopardizes small- and medium-sized businesses in Georgia and across the nation.”  AMAC Action recently banded together with over 154 small business groups and advocacy organizations to strongly oppose the creation of a new double tax at death. Our team in Washington will continue to push back against any attempts to hike taxes on small businesses and seniors across the country. Simply put: no hard-working American business owners should have to visit the grim reaper and the taxman in the same day.

Palmer Schoening is Chairman of the Family Business Coalition and part of AMAC Action’s team in Washington, DC

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john egge
1 month ago

this tax is wrong and all Americans know it, so if congress and senate are allowed to vote on taxes that no American citizen would ever want they must be impeached for betraying the oath they swore, to represent their constituents.
There should be term limits on all offices held as a public servant. two terms max, also never allowed to invest in stocks or businesses because of insider information. No lobbying ever!!!!!!!!!!!!! everything should be only voters needs and desires.

Pat Jandacek
5 months ago

Your final quote:  “Simply put: no hard-working American business owners should have to visit the grim reaper and the taxman in the same day.” AMEN!

Karen
5 months ago

Is Joey included in this tax?

Lee McQuillen
5 months ago
Reply to  Karen

Of course not!

Marilyno
5 months ago

These new burdening taxes to the taxpayer is so unfair. Millions of dollars going to countries south of the border (almost a billion $$) and we all know that that money never goes to the people. Their corrupt governments keep the money and enrich themselves. Then they give our money to countries abroad to perform abortions. We also give money to science projects to find out why frogs have two different croaks, why lizards walk the way they do, etc. etc. Why don’t we just keep our money and pay for the things we need as a country and then there would be no need for these high taxes that burden the American people, who should be their first concern. Why? Because the democratic way of running government is taking all of our money and then eventually running out of it because we will all be out of work and have no motivation to get a job. Why when it all goes to Uncle Sam?

Barbara Freigant
5 months ago

Impeach Biden and take the pen away from a senile person who shouldn’t be in charge of anything nevertheless a country. And impeach Harris she would make a lousy president she isn’t doing anything about the mess the other one is making with the border issue. We need people with spines that will stand up against the liberal liars who are destroying our country.

Diane
5 months ago

They are so busy hating and destroying America it is hard to keep up with what they are doing and/or proposing. Have they done or propose anything to inheritance tax? Last I knew the threshold for tax was $3M. Have they lowered that?

Just
5 months ago

God help us.

BURNT OUT
5 months ago

PROBLEM is I do not enjoy Articles Like this.
Joey is just a tool –
imagine the VP in charge if Joey goes bad and is out of office.
What then.
Venting on here is pointless at this point
The WORST (i do not even like calling this puppet the Prez) PREZ in history
hope those who voted for him are glad for what they put in office!!
But he did Not win – Fraud did.

THIS prez and the DemaCracked are a reverse of RM 13 for sure.
IF this doesnt cause PTSD for the country, what will ????

THX Joey – . Just another Evil

Lee McQuillen
5 months ago
Reply to  BURNT OUT

I would so love to find the woman who came into my workplace and said she would not vote for Trump as he was going to raise taxes! And she was old enough to know better. Hope she’s happy.

Tish
5 months ago

dimrats don’t understand that you can’t tax your way out of debt, and don’t care who they destroy in their plans.

Louis
5 months ago
Reply to  Tish

Not only does idiot joe think he can tax the country out of debt, he thinks he can spend it out of debt, too.

Gary
5 months ago

this is just an example of what the Democrats are doing without the American people being made aware. It is also were parties join together to get bills passed just like this. History does repeat itself and this is an example of that. The Roman Empire came to an end not because of the Huns but instead because their Senators could not agree on anything which if you look closely at our government you will see that both the house and senate can not agree on anything. The last time this happened was when Newt Gingrich was the speaker of the House. Clinton was given credit for the budget being balanced but had it not been for Mr. Gingrich’s cooperation it would never have happened. We the people are about to see their democracy crushed by the Democrats because they want total control of the United States. Not enough people are informed enough to see what is happening

HocasPocas
5 months ago
Reply to  Gary

Most just need to get their heads out of the sand

Max
5 months ago

I would love to put in my 2 cents but the comments that follow takes care of most of my thoughts. Thank you LEFT WING/PROGRESSIVE Democrats as you continue to destroy this nation with your nonsense. By the way, will my 2 cents be taxed?

HocasPocas
5 months ago
Reply to  Max

Most definitely

Daniel Kolls
5 months ago

The Dems destroy EVERY THING they touch.

Wayne Peterkin
5 months ago

Biden and most of his rotten party really do believe that all money belongs to them and we should be grateful we are allowed to keep any of our earnings. That philosophy is fundamental to socialism, which is why we accuse the Democrats of being socialists. Socialism is nothing but big dominating government in complete control of everything including the economy and Democrats have bought into that ideology while Biden is proving it. As all conservatives already know, so-called “death taxes” are inherently wrong because the money being taxed has already been taxes as income. Therefore estate taxes are simply confiscations of private property, morally called theft.

Wilson Kelly
5 months ago
Reply to  Wayne Peterkin

Same thing on social security. Read article that Biden was deciding bote to tax social security payments even though they were taxed on your pay check years ago. Double taxation by demos just like trying to do on dying

P2burner
5 months ago

All this evil, and achieved in just 6 short months! By 2023, the IRS may just swoop in and claim all your assets to support these crazy spending schemes. No one to fight it, through, because we’ll be, well…dead

Tish
5 months ago
Reply to  P2burner

I don’t plan to be, but ya never know. I’m praying for a full-on insurrection by then.

Tim Thompson
5 months ago

What’s even worse to me is the fact that you pay off your home thinking the American dream is before you then you get the rude awakening that the taxes still due every year 2% you still owe each month a figure that almost engulfs your Social Security. The State and Federal Governments have their miserable hand in your pocket and have the power if you can’t pay to put a lean on your house and property you could lose it. Government seems to think they cannot due without taking big cuts of everyone’s inheritances which with the Democratic Communist Biden Administration is now going to the 10th power to destroy what we all have worked so hard for. If you voted for this enjoy, your going down with the rest of us.

Stephane
5 months ago

Socialism at its best: NO MORE OWNERSHIP of anything that has value. Particularly if the value is in Real Estate. NO good socialist government can allow any private ownership. All the blacks who were able to buy a house under PRESIDENT TRUMP will have to relinquish it, if they do not have the money to pay it off! All the people who own land or property will have to give it in taxes to the government. And the rich will buy everything from the government pennies on the dollar. The poor will be poorer, and the rich, richer. The REAL democracy viewed by the pelosi, aoc, schumer, lee, nadler, cuomo, etc…

Mike B.
5 months ago

Did you vote for Biden? I know I didn’t. This is absolutely absurd that this administration would implement something this evil . Hopefully this is the last straw for all these Trump haters to finally see the light ! Our president is a menace / or whoever is in charge / to our society! My God, what is happening to this great country ? He f***s with Americans on a daily basis. Not only a double death tax . . . . boarder control , foreign policy, this stupid, dim witted , green deal, paying lazy people more money to stay home, than to get a job! We were energy dependent for once, in 75 years! Law enforcement wasn’t condemned! All white people including my Grandchildren are not racist ! Our media so biased! Democrats breaking the law / Cumo , and still holding office! I can go on, and on ! Please people, WAKE UP ! I really hope, and pray these so called Democrats wake up a sleeping giant come the elections of 2022. God help us .

Tish
5 months ago
Reply to  Mike B.

libturds are too blind and too stubborn to ever admit they’ve been wrong for years. Commie indoctrination is easy for weaklings. Hold fast, we’re still in it for the good fight.

HocasPocas
5 months ago
Reply to  Mike B.

I think the sleeping giant is already awake

Bill on the Hill
5 months ago
Reply to  Mike B.

I voted for Trump, both times! Living in VT, a Democrat majority state for decades, I’ll never know with any certainty whether or not my vote got switched to Biden because those Dominion machines did precisely that across this nation as they are designed to cheat & always in the Democrats favor…
The AZ audits are almost done as of this writing & I fervently pray the ” Sleeping Giant ” awakens right then & there!
I want my duly elected President reinstated ASAP!
Bill on the Hill… :~)

Kim
5 months ago

Thanks, Clueless Lunch-Bucket Joe. Dying once is bad enough, but now you want to kill us again?!

Sandra
5 months ago

Jail me I’m not giving all my money to a reckless government.

HocasPocas
5 months ago
Reply to  Sandra

Yeah, what ever happened to being represented for your taxation. Pass the Vaseline. This is getting tough to handle

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