Tim Scott warns Dems plan to tax unrealized gains risks destroying entire U.S. system

South Carolina Republican Senator Tim Scott joined “Life, Liberty & Levin” on Sunday to analyze the state of Congress, criticizing the Democratic majority leadership for excluding Republicans from negotiations on overhaul legislation. multi-billion dollar economy dubbed human infrastructure.

Scott told host Mark Levin that Democrats were not given a proverbial mandate from voters in 2020 to embrace such a radical transformation of America’s socio-economic system, given they are clinging to a three-fold margin. votes in the House plus three vacancies. Additionally, the US Senate does not have an absolute majority, except for Vice President Harris’ tiebreaker position in the 50-50 split.

“We have no idea other than what we read in the papers… what’s really going on behind closed doors. It’s like those old days of smoky rooms in the middle of the night,” Scott said. “The deals are cut, the American people are left out and the entire Republican Party, representing half of the votes in the Senate, is literally sidelined with no way to really have a say.”

United States House Majority Leader Steny Hoyer (D-MD) and House Speaker Nancy Pelosi (D-CA) wait during the votes at the first session of the 117th Congress in the House of the House of the United States Capitol in Washington, DC, USA, January 3, 2021. Tasos Katopodis / Pool via REUTERS

“There are no committees that come together and talk about the greatest transformation in a negative way of the greatest economic system ever known to man literally behind closed doors … A one-way ticket to socialism.”

Scott, the first black Southern Republican elected to the Senate since Mississippi’s Hiram Revels and Blanche Bruce in the 1870s, said the American system did not need such an overhaul. He cited himself as an example of one of his successes:

“This system that allowed the poorest children in this country to become among the richest children; to allow children like me who almost failed school to one day become a United States senator. is because our system works, ”he said. . “Of course we can improve it, but that doesn’t improve it.”

Scott first and foremost warned the American people against the Democrats’ opaque plan to tax unrealized gains, appearing to differ from implicit claims by the left that such levies only harm the rich.

“Part of their current strategy is not just to raise tax rates, but to find new ways to generate income from income that is not [in] your account at the moment, “he said

“It’s something that’s not just problematic. It’s something that actually discourages the system itself.”

An unrealized gain is a financial gain that an American realizes on paper that has not yet been pocketed, or “realized.” Such examples include stock options that remain in his fund account but have not been liquidated or withdrawn.

The Internal Revenue Service Building is seen in Washington DC

The Internal Revenue Service Building is seen in Washington DC

The IRS taxes capital gains when they are realized, whether they are reinvested in another fund or transferred to an account holder’s bank for liquid access. Taxing unrealized gains would be a red flag that would undermine the full incentive of Americans of all stripes to participate in the market, Scott said.

“[E]very American who sells a house or sells a business that is a one-time transaction. It’s wrong to be double taxed, ”he said.

“But to get it down from 23% now to 43% or 30%, these gained 7 point increase or a 20 point increase – that’s a 100% tax increase. not allow it to us, ”said the North Charleston lawmaker. .

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“We cannot kill the goose that lays the golden eggs. And this administration is the antithesis of anything to do with free enterprise, hoping for freedom and justice for all.… It’s not what you see. They embed discrimination in the middle of their economic platforms in a way that we have never even seen before in our country. “

Scott reiterated that these legislatively opaque but destructive policies are not what the American people voted for when they essentially chose not to give any party a mandate in Congress, while other observers similarly point out that President Biden was chosen as the “moderate” choice on the Democratic side. in 2020 against Socialist Senator from Vermont Bernard Sanders.

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