Silicon Valley Billionaire Claims Biden’s Tax Plan Is About To Wreck Havoc
Raising taxes on Americans, regardless of the reason for the increase, still makes them poorer and never better off.
Taxes, on the other hand, may be — and have been — used to punish success and reward politically preferred constituencies.
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The latter is something the Democrats excel at.
When Democrats had enough influence, they created a so-called “progressive” tax system that stifled growth and stifled innovation, preventing individuals and businesses alike from reaching their full potential.
In 2017, Donald Trump and Republicans bucked the trend by enacting the most significant tax cuts and reforms in a decade. The findings were as follows: Lower taxes, especially on job-creating businesses, resulted in massive growth and an explosion of domestic investment, pushing unemployment below 4%, raising all socioeconomic boats, and allowing everyone to prosper.
That was back in the day. Now that the Democrats have retaken power, they are eyeing some hefty tax increases that will undo anything Trump and the GOP have put in place. Because they worship big government and prefer their subjects to be servile, compliant, and dependent, they are eyeing some hefty tax increases that will undo everything Trump and the GOP have put in place.
As a noted Silicon Valley billionaire explains to Breitbart News, the hikes will also stifle expansion and job growth:
President Joe Biden’s proposed capital gains tax, which would be increased by around 20%, will make it difficult for startups to hire because “the tax system would punish their workers,” according to prominent Silicon Valley billionaire and investor David Stewart.
In a Twitter thread, Stewart clarified how raising the long-term capital gains tax rate from the existing 23.8 percent to a new limit of 43.4 percent could “neuter America’s entrepreneurial ecosystem.”
By the way, capital gains rates kick in after a year of holding an asset for a profit, according to Breitbart.
Stewart went on to say that he “ranted the numbers” and discovered that a Google employee making $400k per year in California “pays 38 percent of income in taxes for 10 years” (which is obscene, by the way, and discriminatory).
Stewart said he “run the numbers” and discovered that a Google employee making $400,000 per year in California “pays 38 percent of income in taxes for ten years.”
He went on to say that over the course of ten years, a startup founder would pay 36 percent of profits on $3.9 million (still obscene). However, under “Biden’s strategy,” “Googlers’ taxes remain unchanged, but the founder’s rate jumps to 46 percent!” (which should not be tolerated by anyone).
He goes on to say:
When founders and early workers leave a well-established business for a startup, they take pay cuts and take on more risk.
They do so partly because there is the possibility of a large payout at the end, with a low capital gains tax rate.
Startups will have a difficult time recruiting and their jobs will be penalized by the tax system. Despite earning more gross revenue, a Googler earning $400k per year for ten years would pay less tax than a startup employee earning $100k per year for nine years, plus a $3 million payday in year ten.
The current tax code incentivizes workers to take pay cuts and risks in order to create the next generation of businesses. The startup ecosystem will struggle if entrepreneurs begin to take home less of their overall income than salaried jobs at established companies.