President Joe Biden’s motto ought to be, “Make China great again,” says Sen. Steve Daines, R-Mont.
“You can't tax the American people enough to cover the massive spending that we are seeing proposed coming from this administration,” Daines said Tuesday during an appearance on Newsmax TV’s “Spicer & Co.” on the topic of Biden’s proposed tax hikes.
“It is something we've never ever seen before in our nation's history. It’s massive spending, coupled with massive tax hikes, but the tax hikes won’t even cover the spending, what's left is we're gonna leave the next generation with massive debt and higher taxes. That is the perfect storm to put China in the lead globally in terms of economic growth, and that's what it comes down to, is global competitiveness. This is about making China great again. I think that's what President Biden's motto ought be.”
Biden’s tax package is expected to feature a long-term capital gains tax hike targeting the earnings of the top 0.3 percent of Americans to treat capital gains and income similarly for the wealthy.
Daines told Spicer the move would disincentive American companies to grow.
“Remember, the reason we give better treatment on capital gains is to encourage investing as well as holding onto assets and save it,” Daines said.
“Remember back in 1997, President (Bill) Clinton cut capital gains rates by 40 and now President Biden and his woke team, Elizabeth Warren and Bernie Sanders, they want to double, double the capital gains. That will be a direct hit to this economy, and I heard the Biden spokesperson say it’s just 0.3%. Do you realize that 0.3% pays 64% of the capital gains taxes today?
“What this will do, I think it will actually reduce the amount of revenue coming in because you raise rates so high, it locks investors in and they don't want to sell on asset and invest in the next new thing, increase innovation and spurs the economy,” he added.
“They’ll hold it. That is a mistake, a giant step backward and again, it's another example of President Biden and these far-left progressives who are seeking to slow this economy down and kill job growth, kill investment, kill innovation. You can't tax the American people enough to cover the massive spending that we are seeing proposed coming from this administration.”
The top long-term capital gains and qualified dividends tax rate would increase to 39.6 percent from 23.8 percent under Biden’s proposal and would apply to those earning over $1 million.
“As far as capital gains tax rates go, this would be the highest top rate since about the 1920s,” Erica York, an economist with the Tax Foundation, told Yahoo Money. “We would top the charts, especially in some of these states and localities that have either relatively high capital gains tax rates… much higher than the global norm.”
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