Biden Sparks Outrage with Tax Policy That Ends Benefits for ‘White’ People

This change targets high-income earners, particularly affecting those with an annual taxable income exceeding $1 million. The administration believes this could help address the racial wealth gap.

Implementing this policy is part of a broader strategy aimed at reducing racial disparities in wealth, which have persisted despite some progress in areas like education and corporate diversity.

Including the new federal proposal along with existing state capital gains taxes, the policy would significantly increase the tax burden on wealthy investors.

Despite advancements in educational attainment and increased diversity in corporate leadership, substantial economic disparities remain between racial groups.

“It’s a complete mess, and it produces anything but equality,” Michael Seifert, CEO of digital marketplace PublicSquare, expressed his concerns to The National Desk about the reform’s effectiveness in achieving its intended goals.

He said, “The potential tax on unrealized long term capital gains is limited to taxpayers with over $100 million in assets… the idea of taxing the value of asset that has yet to be sold is difficult to set.”

The discussion centers on whether such tax policies can equitably redistribute wealth and address systemic economic disparities.

He noted that historically, lower capital gains taxes have encouraged his clients to invest more in their businesses.

If business owners do not have more money to put back into their business or the economy, experts worry that they won’t willingly help create more jobs.

The U.S. Chamber of Commerce’s chief policy officer Neil Bradley said that Biden’s tax policies would lead to fewer new businesses being started.

He highlighted issues such as unequal access to quality education and career opportunities.

“I know the racial wealth gap has roots in systemic obstacles like unequal access to quality education, career opportunities, business loans, and generational wealth transfer,” Ryan said. “A blunt capital gains tax hike doesn’t really tackle those underlying issues.”

Charles Payne, a Fox Business journalist, criticized the policy on X, formerly Twitter, stating, “Taxing unrealized ‘gains’ from white folks doesn’t make Black folks more prosperous—it’s just a bogus and un-American excuse for confiscation.”

“The Biden budget has come up with this crazy idea of taxing white people because they own more assets than people of color. So, Bidenomics seeks to raise the capital gains tax all the way up to 44.6 percent,” Kudlow said.

Kudlow added, “And the Janet Yellen Treasury Department points out that white families disproportionately hold assets. Well, yes, we know that, but we also know during the Trump years, Hispanic and Black businesses prospered.”

Such measures are part of the administration’s strategy to financially address demographic imbalances that have long existed within the U.S. economic system.

“Narrowing the racial wealth divide is a noble cause,” Ryan acknowledges, stressing the need for targeted, multifaceted solutions beyond just taxing the investments of millionaires and billionaires.

Previously, Biden also promised Americans that he would take on the wealthy and the lack of taxes they pay every year. He also explained that he would target corporations that don’t pay their fair share in taxes, as well.

These proposed tax cuts and policies are a part of his fiscal budget for 2025, which would help to decrease the federal deficit by about $3 trillion over the next 10 years.

“I’m a capitalist. You want to make a million, or millions of bucks? That’s great. Just pay your fair share in taxes,” Biden said.

Many wealthy citizens use business income reductions for the use of their corporate jets. The IRS has already targeted these citizens with audits, though Biden wants Congress to act on this as well.

Biden said he would extend certain tax cuts that were created during Trump’s era, including cuts for Americans who earned under $400,000. The president also promised to revive the Child Tax Credit expansion that was seen during COVID.

According to Marr, these tax policies would be a “course correction” that would help make the tax system in the U.S. fairer for all Americans.

It all depends on how the November election goes. If Democrats win strong majorities in both the House and the Senate — and if Biden wins reelection — then these tax proposals may be seen in 2025.