Biden Again Claims Billionaires Pay 8 Percent in Taxes — It’s Nonsense, and Wealthy Democrats Know It

Disclaimer: This article is neither a criticism nor a defense of billionaires. The same disclaimer applies to the Internal Revenue Service. What it is, is a refutation of Joe Biden and the Democrat Party’s continuing claim that America’s billionaires pay just 8 percent in taxes. That is categorically false.

Here was Biden in early January:

Biden might have been serious — but he was also either lying, ill-informed, or woefully confused. 

Even Glenn Kessler, the Washington Post‘s left-wing “fact checker,” said the claim isn’t true (emphasis, mine).

As Kessler noted, under the 16th Amendment of the Constitution, ratified in 1913, “Congress shall have power to lay and collect taxes on income, from whatever source derived.” 

The operative word is “income,” which is why I highlighted it. 

Biden and the Democrats dishonestly use a definition of income, to Kessler’s previous point, that they wish existed, vs. the definition that does exist, per federal tax legislation and the IRS. So, what does taxable income consist of, according to the IRS?

Note that unrealized capital appreciation is not included in the above definition of income. Here’s a simplified example: 

Let’s assume that you had taxable income of $100,000 in 2023. In addition, your home increased in value by $20,000, and your (non-IRA or 401(k)) investment portfolio increased in value by $10,000. Also, you didn’t sell any of the portfolio’s investments. 

Democrats like Biden and Elizabeth Warren, along with independent (socialist) Bernie Sanders, wish you’d have to pay taxes on $130,000 vs. $100,000. Add a few zeroes to the example and that is, in essence, how Democrats concoct their nonsensical, 8 percent tax rate for billionaires.

Here’s more from Kessler:

As I suggest in the headline, there isn’t a wealthy Democrat in America who doesn’t know that everything in this article is true. Yet, serial-lying multimillionaires like Nancy Pelosi, Elizabeth Warren, Bernie Sanders, and Joe Biden continue to lie through their teeth about it to low-information voters.

Robert Willens, a leading tax and accounting expert, called the 8 percent claim “disingenuous at best.”

Mr. Willens, with all due respect, that is exactly what Biden and the Democrats want: even more harsh criticism of billionaires by low-information Democrat voters. 

The Bottom Line

Remember, as George Carlin said, “Never underestimate the power of stupid people in large groups.” And that very fact, gang, is exactly what the Democrat Party counts on — daily — along with a healthy dose of their politics of division.

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