President Joe Biden's plan to nearly double the capital gains tax rate to as high as 43.5% for the nation's wealthiest people is not only going to be a disaster but also should be ruled out as being "unconstitutional," political and economic commenter Trish Regan told Newsmax TV Friday.
"To me this is just a nonstarter," Regan, the founder of trishintel.com, told Newsmax TV's "National Report." "I have not seen anything even historically speaking — I think you have got to go all the way back to the American Revolution in the 13 colonies with the British tyranny and their taxation."
Regan, appearing on the program with financial services industry veteran Michael Lee, the founder of Michael Lee Strategy, added that Biden's plan is a "moronic strategy" that will destroy the U.S economy.
"I hope to goodness that we don't actually let this see the light of day," she said. "Hopefully there are some adults in Washington, D. C., like (W. Va. Sen.) Joe Manchin. You know, we're counting on him to be one of the adults in the room."
The capital gains tax push would also be "disastrous" for small business owners, said Regan.
"Joe Biden wants to say 'oh, don't worry about it. It doesn't matter unless you make more than a million dollars.'"
But the problem with that is that people making that kind of money will decide that they don't want to be invested in U.S. equities in the stock market because they will fear being "saddled with massive taxes" in the same way they are with taxes on income.
"Think about the risk investors were taking by putting money into companies," she said. "You want the U.S. economy and U.S. companies to get built up. But if they say I'm not really going to do that, well, guess what they pull their money out, and that means teachers and firefighters and police officers get hit because they have their money in funds for their retirement. And so this is just a disaster all across the board. It's utter stupidity."
And the measure goes beyond just taxes, and it's not fair, said Regan.
"I don't like taxes to begin with, but this is like beyond plain old taxes," she said. "This is unfair. It's not right. Frankly, this kind of stuff should just be ruled out to me as unconstitutional."
Lee, meanwhile, called the proposed hike in capital gains taxes a ploy to increase government control.
"This will mean to everyday Americans that your capital gains will now be the same rate as your ordinary income," said Lee. "This will destroy the incentive to invest in the U.S."
He added that in states such as California and in New York, Americans will paying "upwards of 55%, close to 60%" in capital gains taxes and that the taxes will hurt small businesses the most, particularly those who hope to sell their businesses and retire.
Part of the problem is that Joe Biden doesn't even understand his own tax plan, said Regan.
"This is really disturbing to me because it's not really in sync with who he was historically over the last three decades he has been in politics," said Regan. "I think a lot of people around him hate business. They hate money. They hate success because they think all that money should belong to the U. S government. In other words, it's got to go to Uncle Sam, or in this case, Uncle Joe, right, If it doesn't belong to Uncle Joe to redistribute as he sees fit..they're going to do everything they can to take money away from the people that earn it and redistribute it as they see fit, and it's really wrong. It's really un-American."
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