While House Republicans fought to unite behind a list of cuts to justify their pledge to cut spending, they happily criticize President Joe Biden’s budget as a bloated, roused extremist manifesto.
Treasury Secretary Janet Yellen was on the receiving end of his often high-decibel criticism on Friday when she tested before the House Ways and Means Committee.
Rep. Greg Murphy (R-NC) was particularly offended by the president’s proposal to tax unrealized capital gains, or a notional gain on an investment you haven’t yet sold.
“It’s like putting someone in jail for a possible murder they might commit,” he said Friday.
“We have a situation where hard-working teachers and firefighters are paying more of their income in taxes than billionaires who make most of their income from unrealized capital gains,” Yellen responded, adding: “ We are suggesting a tax on people who earn more than $100 million.”
Murphy went ahead with his metaphor.
“I’m not talking about the person’s wealth, I’m talking about the actual theory of attacking someone before they’ve actually earned their money,” he said. “Again, it’s like putting someone in prison before he commits the murder.”
Much of Biden’s budget derives its revenue from raising taxes on the wealthy and corporations to bolster social programs, a source of revenue that many Democrats have cited as their favorite part of the economic plan. It’s Biden’s attempt to narrow the chasm between people who make most of their money through wages and salaries, and the ultra-rich who may not have much in the way of traditional income, but have huge rewards in other ways. forms, such as unrealized capital gains.
The White House is calling the main policy the “billion dollar tax.” It would impose a minimum 25 percent tax on homes worth more than $100 million.
The administration is eager to seize moments like Murphy Friday, with Republicans expressing fear over parts of the budget aimed at making the wealthiest small segment of Americans pay more in taxes.
“Every day, the mask of extreme MAGA Republicans pretending to care about American workers falls a little more,” White House spokeswoman Robyn Patterson told TPM. “Whether it’s putting Medicare and Social Security on the chopping block, siding with Big Pharma in blocking Medicare by negotiating lower drug prices, or being outraged that big special interests might have to pay a little more in taxes, you’re becoming very clear to all Americans. which side are they on?
