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Inflation and Higher Taxes Can Impact the Ability of Seniors to Retire in Peace

Posted on Thursday, September 23, 2021
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by AMAC, John Grimaldi
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WASHINGTON, DC, Sep 23 — Happy birthday has a different meaning when you turn 50. You suddenly realize you have joined the ranks of “mature American citizens.” The not-so-good news is you’re old. The good news is that you’re getting old enough to start planning for retirement. Not so fast, say President Biden and his progressives in Congress; they need you to contribute more in taxes. In fact, they are proposing $2,000,000,000,000 worth of tax increases — $2 Trillion– “Trillion,” with a capital T.

After all, they need to increase taxes in order to fund a $3.5 trillion spending package loaded with socialist freebies. “The massive tax hike being pushed by President Biden and congressional Democrats would be the largest tax increase since 1968, and almost no aspect of the tax code is left untouched,” says Senator Rob Portman [R-OH].

In remarks he made on the Senate floor recently, Portman pointed out that It’s not just income taxes that would be increased. If you have a retirement account, it will be taxed at a higher rate. If you have a small business, it will also suffer the burden of higher taxes.

And then there are Estate Taxes. AMAC takes the position that these so-called “death taxes” should be repealed. Instead, Portman notes that the Biden tax plan calls for a substantial increase. Capital gains taxes will be increased as well, and the Senator says this is problematic because it would inhibit investment, and what this country needs right now is an increase in investments that create jobs and make us more productive.

The experts will tell you that the two elements that can upset your retirement apple cart are inflation and taxation, and under Biden and his progressive cronies in D.C., both are on the upswing. The likelihood that both will continue to rise is certain, bearing in mind that inflation and taxes were checked at reasonable levels by President Trump and GOP members of Congress.

But things started going awry within just two short months after Biden took office. The rate of inflation under President Trump remained at tolerable levels — between 1.4% and 2.3% — during his presidency. But then, in February, inflation began an upswing. The rate was at 2.6% by March and continued to rise. Right now, it stands at about 5.3% — the highest level in a dozen years or more.

As for taxes, as has been discussed, you can make a bet that the rates of taxation will rise to new, higher levels. Among other things, Mr. Trump lowered tax rates, allowed taxpayers to take higher standard deductions, and doubled the estate tax exemption. Mr. Biden has unabashedly declared that he will be raising taxes in the coming year.

In his Senate speech, Senator Portman reminded us that big businesses and megabuck citizens have options we poor mortals don’t have in the high inflation and higher tax Biden era. He pointed out that during the Obama administration, American companies started moving to foreign lands. At the time, our tax laws were so bad that countries with more reasonable corporate tax structures became very attractive to them, and they left town. The 2017 Trump tax cuts brought them home.

Over the past several years, we’ve seen an exodus of the very wealthy seeking to reduce their tax burdens by renouncing citizenship and relocating to tax havens around the world. In fact, it’s become a lucrative business for international tax attorney David Lesperance who specializes in helping people renounce U.S. citizenship. It’s been that since the Biden tax hikes were revealed — including a proposed a hike in the top capital gains tax to 43.4% — he’s been receiving “lots of calls” from rich would-be ex-pats seeking his advice and help.

As for inflation, rich folks are not particularly worried about inflation. And they have an advantage when tax rates get too high. They can renounce their citizenship, leave the country and take up residency in a cozy tax haven where governments will welcome them with arms wide open.

Mr. Portman concluded his speech before the Senate by noting that in 2017 President Trump’s tax reforms created economic growth on a large scale. It launched an era of growth for businesses large and small. In turn, it empowered America’s workforce. The Trump tax reforms of 2017 “helped usher in an economy powered by workers, empowered by small businesses, empowered by more competitive, larger businesses. It wasn’t powered by big-spending here in Washington, D.C.”

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PaulE
PaulE
3 years ago

Democrat politicians are concerned with amassing great personal power over others and achieving enormous personal wealth through confiscation of other people’s money. The standard goals of anyone who has ever advocated for socialism.

The current reconciliation bill is merely a means to achieving those ends. The price tag has climbed to $7.5 trillion dollars, when scored honestly over the normal 10 year period and including all current items in the bill. So it would benefit AMAC readers, if AMAC would stop using the inaccurate Democrat number of $3.5 trillion dollars and instead use the number that at least 3 other independent economic firms revised upward at the end of last week. Remember, the Democrats used low-ball numbers when they were selling ObamaCare to the public and only afterward did the Democrats admit the real cost was 3 times higher than their estimates. The same thing is going on here to a somewhat lesser degree. The last thing we need at this point is lazy journalism. Use the real cost estimates.

I have yet to meet any Democrat politician who cares for the well being of the American people and society as a whole in any meaningful way. They are all out for themselves and will use any means at their disposal to achieve their personal goals.

Jeanette
Jeanette
3 years ago

I’m already sick and tired of this ignorant administration. Where will they get the money to fund the next 3 years. They are bleeding the very people who made this country ‘s economy the envy of the world..now no longer.

Bruno
Bruno
3 years ago

I don’t know why you, the author, don’t understand that Biden and the rest of the Democrat trash don’t want you free from the government, don’t want you independent, don’t want you free from their influence. They want you beholden to them, they want you submissive, they want to be in power no matter the consequences to our country. If the country is destroyed they can’t even see it nor do they care. Wake up people. They not the lesser of two evils, they are evil incarnate and they are the doom of this nation if we let them remain in control. Everything Obiden and the rest of his ilk do reinforces the premise that they seek to destroy us on behalf of China. Wake up.

Sally Duncan
Sally Duncan
3 years ago

God help us! The senile old man in the oval office is also an evil oligarchy who will do what he wants and hide after.

Flip Willie
Flip Willie
3 years ago

Take solace that Biden won’t outlive his security, thereby saving the tax payer money.

Mark L
Mark L
3 years ago

Biden sucks! He’s done nothing for AERICANS but he gives generously to Countries that hate us all the while denying fairness to We The People!

Senate Majority Leader Chuck Schumer (D-NY) gives remarks before President Joe Biden signs the Infrastructure Investment and Jobs Act, Monday, November 15, 2021, on the South Lawn of the White House. (Official White House Photo by Cameron Smith)
Former Arizona Corporation Commissioner Kris Mayes speaking with attendees at an Attorney General candidate forum hosted by the Arizona Chamber of Commerce & Industry at the Arizona Commerce Authority in Phoenix, Arizona.
The Capitol Building in Washington DC with the flag of the United States of America.
Vice President Kamala Harris speaks with Border Patrol officials as she visits the U.S.-Mexico border wall, Friday, September 27, 2024, in Douglas, Arizona. (Official White House Photo by Lawrence Jackson)

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