Liberals hope Joe Biden will be another FDR. But that's something to fear, as Mr. Biden's tax proposals threaten to repeat Franklin D. Roosevelt's big mistake, which many historians blame for plunging a recovering economy back into depression.
The top federal corporate tax rate was only 15%. In response, wealthy Americans accumulated profits inside corporations that owned their residences and other assets.
Should he win in November, he proposes to cancel the Trump tax cuts, raising the top federal income-tax rate back to 39.6%, and raise the corporate income tax from 21% to 28%. He also promises to limit low capital-gains tax rates to the first $1 million in profits and extend the full Social Security tax to income above $400,000.
In 2011 Stephen J. Entin, then president of the Institute for Research on the Economics of Taxation, told a congressional committee that the "Income tax is heavily biased against saving and investment" and that the "Burden of higher taxes on capital formation falls largely on labor in the form of lower wages and hours worked." As in 1937, the effect of Mr. Biden's proposals would be to draw funds out of the economy to pay taxes, discourage new investment, hurt wages and hours worked, and discourage recognizing capital gains.
Progressive New York lawmakers propose raising the top marginal income-tax rate of 8.82% to 9.62% and 11.85% on the "Superrich." That's on top of New York City's 3.876% income tax.
New York is considering an annual mark-to-market income tax, or M2M, in which stocks and other securities held by residents are valued annually and the gain immediately taxed, rather than waiting until a sale or exchange.
Proposals to repeal the "Step-up in basis" for inherited assets could tax the gain once more, on sale by the heirs, resulting in multiple taxation.
https://www.wsj.com/articles/bidenomics-may-repeat-fdrs-blunder-11601333614?mod=hp_opin_pos_1
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