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President Joe Biden, this week, put forward proposals that would help boost tax income to meet the funding needs for the Medicare program.
What Happened: Ark Invest founder Cathie Wood came down hard on the president’s proposals and delved into the potential ramifications.
The fund manager was commenting on a tweet by the Twitter handle of the “Kobeissi Letter,” which summarized the proposed tax changes of the president.
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These proposals included raising:
- Capital gains tax from 20% to 39.6%, the highest since 1978.
- Top tax rate from 37% to 39.6%.
- Corporate tax rate from 21% to 28%.
- Self-employment tax from 3.8% to 5%.
- Stock buyback tax from 1% to 4%.
- IRA funding by 15% on top of $80 billion from the Inflation Reduction Act.
Biden also proposed having a 25% minimum tax rate on households with $100 million+ net worth, elimination of tax breaks for crypto investors and carried interest tax breaks.
“These changes come as the United States has battled 5%+ inflation for 21 consecutive months and housing affordability is below 2008 levels,” the tweet from the Twitter handle said.
Killing Innovation: Referring to “Art Laffer’s” latest book titled “Taxes Have Consequences,” Wood said with the latest budget proposals, she sees great migration to low or no-tax states like Florida and Texas.
She also expects an acceleration in the migration of innovation to countries hungry for innovation in Asia and elsewhere.
Reacting to Kobeissi Letter’s tweet about the proposed plan to eliminate tax loss harvesting on crypto transactions, Dogecoin DOGE/USD co-founder Billy Markus said, “lol that’s such bulls**t.”
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Image and article originally from www.benzinga.com. Read the original article here.