There is an old phrase, coined by 19th Century English historical Lord Acton. The saying goes 'absolute power corrupts absolutely.' It is a phrase that has entered the mind more and more as we enter three years into the President Biden administration. From Democrats pathetic attempts to indict Donald Trump, to the Biden connections to foreign money and influence peddling, corruption is a term often used now in the same sentence as the word Democrat.
They continue to take, and take, from Americans to fatten their own self-interests, and leave everyday Americans blowing in the wind. Now, as his Administration continues their reckless overspending on useless things, like aid money for Ukraine, they now want more money. Like a starving stray cat you feed once, it always comes back for more. Biden now has plans to dip into American retirement accounts to get some pocket cash.
Economist Vance Ginn says while it is unclear the policy he would implement, the idea would be backdoor taxing people's unrealized capital gains in IRA accounts.
"The idea, especially with Roth IRA's, is that you pay the taxes beforehand, so when you get money out later, you do not pay additional tax on appreciation, or capital gains," he says. "And this is exactly what Biden wants to tax...so not only are you getting taxed on income, but you will also get taxed later."
It all falls in line with Biden's 'eat the rich' campaign he has pushed at the behest of his Liberal base.
But Biden's bad ideas do not stop there, he also has plans he announced during the State of the Union to increase the corporate tax. The newest budget from him increases it from 21 percent to 28 percent. While in office, President Donald Trump lowered it from 35 percent to that 21 percent.
"Around 21 percent is the average for the developed world...raising it to 28 percent will not only make us less competitive with other countries. But it will also make it bad for people...as they are taxed at a higher rate, people will pay for those with higher prices, lower wages, and less jobs," he says.
Consider for example a single person who has a $10,000 share of corporation profits prior to payment of corporate and individual taxes. Right now, they would pay $2,100 regardless of their tax bracket. The lower-income person keeps the remaining $7,900, with the higher-income person paying 15 percent on the $7,900 in dividends and gains for another $1,185. They keep $6,715, and the different in favor of the lower income person is the $1,185 paid by the high earner.
At a 28 percent rate, without boring you with the math, becomes a difference in favor of the lower-income person of $1,080. That makes this a regressive tax.
"This will reduce economic growth, and make us less prosperous down the road," says Ginn.
You do not have to go back too far to find days when Biden was a normal, old-school Democrat who actually wanted these things cut back. Even as late as the early 2000s, he had a sense of normalcy to him.
But now, he has completely gone over the crazy cliff, deep into the whirlpool of borderline socialism.
"It is all about how they can tax the rich the most and grow the most...that is the road to serfdom," he says. "You cannot grow the government at the same rate as the private sector, because you care taking more money from the private sector to grow government."
You could call it a surprise, but it is really not. Biden's former boss, Barack Obama, draided people's retirement accounts to bailout automakers who had dug their own grave.
Americans are a piggy bank to Democrats, and it can only be broken so many times.