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American Families to Joe Biden: We're Disgusted with Your 'Twisted' 'Death Tax'

President Joe Biden’s administration drew a line in the sand: If you made under $400,000, you wouldn’t see a single penny more in tax increases.

And yet, the Biden administration was signing us up for trillions of new spending. How were they going to manage this neat trick? They couldn’t just deficit-spend their way out of this one. Instead, they were going to tax corporations and the ultra-wealthy.

In a March 31 speech in which he announced his infrastructure bill, according to a transcript from “I start with one rule: No one, let me say it again, no one making under $400,000 will see their federal taxes go up, period,” Biden said. “[H]ere’s the deal, right now a middle-class couple, a firefighter and a teacher with two kids making a combined salary of say 110, $120,000 a year pays 22 cents for each additional dollar they earn in federal income tax. But a multinational corporation that builds a factory abroad, brings it home to sell it, they pay nothing at all.”

And then Biden said again in his joint address to Congress on April 28, according to a USA Today transcript, “I will not impose any tax increases on people making less than $400,000 a year.

“It’s time for corporate America and the wealthiest 1 percent of Americans to pay their fair share. Just pay their fair share.”

You heard it over and over from the administration: Corporate tax. The one percent. Corporate tax. The one percent. Then, almost under their breath, spoken like the fine print in a radio ad: Oh yeah, and capital gains tax will go up, too.

That’s still generally a popular thing with voters, though. It conjures up images of consternated, well-coiffed men in front of a computer in a mahogany-soaked home office, sipping a single-malt scotch and grumbling about how they’d have to pick one of the less-desirable towns in the Hamptons to dock their yacht in next summer.

And that’s what the administration wants you to think — even though, to them, you or your children may very well be that man. You see, while the administration was speaking in the radio-ad voice, it was also saying the estate tax  — the so-called “death tax” — would be subject to capital gains tax rules. For a lot of families making well under $400,000, their children are going to take one heck of a hit.

Currently, the estate tax only inheritances on property worth over $11.7 million for single taxpayers, $23.4 million for couples. Anything over that you pay taxes on. If you’re a single individual who inherits a $15.7 million estate, for instance, you’d pay taxes on $4 million.

The White House called this a “loophole that allows the wealthiest Americans to entirely escape tax on their wealth by passing it down to heirs.” In Biden’s American Families Plan — the last in his trilogy of trillion-dollar programs, the one designed to give Americans two years of government-paid college and 12 weeks of paid family and medical leave — he closes it. And how.

“The President’s plan will close this loophole, ending the practice of ‘stepping-up’ the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity,” the White House’s fact sheet on the American Families Plan read. “Without these changes, billions in capital income would continue to escape taxation entirely.”

Not only that, it would subject these estates to capital gains tax rates, which will be raised to 40.8 percent from 23.8 percent, according to The Wall Street Journal. This tax would be on unrealized gains, too — potential profits that exist on paper but haven’t been converted into actual wealth. This is the first time unrealized gains have been included in the estate tax.

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