Thoughts on Biden's Budget Proposal / Tax Hike
I have thoughts on Biden's budget/tax plan (in a surprise to nobody). I'm going to just comment on a few highlights, and not the specific details, since the plan is still in flux. The Good The idea of upping the capital gains tax is something I have supported in concept for a long time. I do not buy the idea that people will keep money out of the economy if capital gains taxes are high, especially with real inflation consistently around 5-10% annually (and poised to be much higher in the short to medium term, as the economy picks up and the trillions in created money flood back into it). I think it makes for better socioeconomic policy to tax passive gains at a higher rate than earned income in general. The Marginal I don't have a strong opinion on raising the top marginal tax rate back to the pre-Trump level, and/or the specific tax rates in general. Of course these have a huge impact on people's take-home income, but tax rates should be set based on what's accepta...