THE TRIQUETRA OF LIFE: Wisdom, Wealth, and Wellness

Biden’s attempt to impose higher taxes by a wealth distribution is nothing more than mandated-charity from the current president and pope of the deep-state political neo-religion: Democratic-Socialism.

Specifics of Biden’s tax proposal:

1.                   Backdoor conversions of Roth IRA prohibited if AGI > $400,000/yr,
2.                   Abolishment of in-kind transfer of property through a 1031 exchange, 
3.                   Abolishment of step- up-basis of market value for inherited property.
4.                   Abolishment of capital gains treatment for qualified dividends & holdings,
5.                   Yearly tax on unrealized capital gains for investment stock assets,
6.                   Top tax bracket returns to 39.7&% in 2025, a year earlier,      
7.                   Wealthy Californians would be paying 39.7% +14.3% = 53%…
8.                   plus the Feds net investment tax of 5% from 3.8%, totaling 58% for CA.                  

https://www.fidelity.com/learning-center/wealth-management-insights/biden-budget-proposal

Expect California’s definition of the wealthy (earning $400,000 per year) to regularly ratchet down within a few years to the average middle-class income level of $130,000. Higher taxes for everyone.

Historical notes: 

Colonial and Early Americans paid a very low tax rate, both by modern and contemporary standards. Just prior to the Revolution, British tax rates stood at between 5-7%, dwarfing Americans’ 1-1.5% tax rates.

But consider the implications of taxes at 53% plus a sales tax of 8.3%. As total taxes soar above 40%, then what usually follows is revolution. I trust it’s no surprise. Take a scroll through all the historical tax revolts.

https://en.wikipedia.org/wiki/List_of_historical_acts_of_tax_resistance#:~:text=Examples%20of%20historic%20events%20that,Revolution%2C%20and%20the%20French%20Revolution.

The Doom-Loop Defined:

The wealthy with businesses are leaving not only CA, but NY and other Blue States that defunded police law enforcement, allowing the illegal immigrant indigents to assault, steal, loot, and beg in crappy streets. Tourists who bring in big bucks are going elsewhere to avoid all this. Businesses are folding because salary withholding taxes are increasing. The only residents will be those too old or poor to pay taxes, or move. What was once an illustrious city has become a rat infested hell hole due to naïve idealism and opportunistic politicians greedy for power.

Diversity, Equity and Inclusion ensures that misery spreads to rich and poor everywhere, making AOC and her loony immigrant Squad proud.

But Another Tax revolt is brewing in CA.

A 1970 tax revolt got Prop 13 that limits property tax increases to 2% per year is now being threatened in order to pay for all the socialist giveaways and the bloated salaries of its government bureaucracy. 

Another tax revolt is brewing that will force CA legislators to balance the state budget by reducing their fat administrative salaries and the food, shelter, medical and cash handouts to wannabe bums: homeless druggies, and illegal immigrants coming here from all over the world. 

https://www.reuters.com/article/idUSTRE53700V

Let’s hope this scary horror movie doesn’t come to your local theater.