The Biden administration’s tax proposals are so outlandish that we have to dig deeper and ask “What exactly were they trying to accomplish or signal here?”
If there’s one thing we know about Team Biden, it’s that they value signaling and narrative above all else. So what signal were they sending?
Consider that the tax code changes propose to double or event triple taxes on all of the major DNC donor classes. Wall Street gets dinged hard with the elimination of the Carried Interest tax break. Real estate gets hit hard with the 1031 reduction (or elimination depending on the source you read). Oil & Gas get smacked with the reduction of drilling & depletion tax benefits. Those with capital gains get put on the rack with a more than doubling to 44.6%, making the combined federal and state capital gains rate well over 50%. Corporations will see a full doubling of their minimum tax rates.
Sure, the US is a fiscal train wreck right now, and yes I understand that the solution to that never involves cutting spending, but this is an election year.
Every single one of the main contributors to DNC coffers got absolutely chucked under the wheels of the tax bus.
Mysterious, ain’t it?
The only way I can make sense of this is to assume that either (1) Team Biden knows that the election is already won by them (due to rigged systems and machines), or (2) that there won’t be an election. So, who cares, right?
More troubling is that the Rules For Rulers framework tells us that revolutionaries often kill of their own once they get to power because those eliminated people who helped you get power aren’t the same people who will help you keep power.
Ah. Well then. In that case, what are we to make of the optics of Team Biden signaling that they no longer require the services of the wealthy, the upper classes, businesses or investors?
All I can figure is it means there’s a revolution underway and it’s gone along far enough that the purging has begun.