Just when you thought we were safe from another Joe Biden tax increase...
In case you missed it, during the president's State Of The Union Address, Biden called for quadrupling the tax on corporate stock buybacks, from 1% to 4%.
"The real issue here is, it's a misguided angst at buybacks themselves, when they're really a fairly innocuous corporate activity" said Andrew Wilford, Senior Policy Analyst with the National Taxpayers Union Foundation, "And they also have a large impact on taxpayers, stocks, and retirement portfolios."
During the SOTU, Biden again boasted the false narrative of taking from the rich, but this tax hike will actually hurt middle and lower income families the most.
"People have a misconception about who actually has interest in the stock market" Wilford told KTRH, "The data shows that Americans have shares in the stock market, either through direct stock ownership, or through their retirement accounts or mutual funds, at about the same rate as they pay income tax. That suggests that buybacks are more than just a 'fat cat' activity."
And we can expect the tax increase to be more than just a Biden proposal. Wilford says look for legislation to happen sooner, rather than later.
Photo: Getty Images