Market Expert Fumes to Kudlow Over Biden’s Proposal to Double Capital Gains Tax: ‘It’s Just Asinine…Such An Economic Negative’
Investment executive Jim Iuorio took to Larry Kudlow’s show on Thursday to shred a leaked Biden administration proposal to double capital gains taxes on top earners.
“I had to read the headline four times before I actually believed it,” Iuorio, a managing director at TJM Institutional Services, said in an interview on Kudlow’s Fox Business Network show. “It felt like I was in some sort of weird daydream. There is absolutely no cogent argument that can be made by anybody in defense of more than doubling the capital gains tax. It’s just asinine. They know full well that not only will it not gain anymore tax receipts from it…it is such an economic negative.”
The Dow Jones dropped more than 300 points on Thursday, while the Nasdaq dropped .9 percent, after Bloomberg published details of the plan, which would raise the top federal tax rate from about 20 percent to 43.4 percent. The numbers would amount to a top rate of as much as 56.7 percent in California, and 52.22 percent in New York.
Zuma Global President Heather Zumarraga echoed the sentiment. “It’s going to kill growth,” Zumarraga told Kudlow. “Either people will not invest if they’re going to be taxed that high, or…they’ll say let me get my money out now while I will be taxed at a lower rate.”
Investors in other corners expressed similar opinions, including Tim Draper, who opined in a message on Twitter that the rates “might kill the golden goose that is America/Silicon Valley.”
“People need an incentive to build long term #startups of value. In California, that would be a 56.4% tax burden. >50% Spells death to job creation,” Draper added.
43.4% capital gains tax might kill the golden goose that is America/Silicon Valley. People need an incentive to build long term #startups of value. In California, that would be a 56.4% tax burden. >50% Spells death to job creation.
— Tim Draper (@TimDraper) April 22, 2021
President Joe Biden is expected to announce the proposal next week as part of his American Families Plan, which would provide for paid family leave and free community college, among other priorities. The White House has insisted the plan will not raise taxes on middle or low-income Americans, with White House press secretary Jen Psaki telling reporters in March, “Nobody making under $400,000 a year will have their taxes increased.”
Watch above via Fox Business Network.
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