MARIA BARTIROMO (HOST): So, every spending spree ends in a bill, whether it's at the mall, a restaurant, or on Capitol Hill. Eventually, the check comes due. Now, that Joe Biden's massive $1.9 trillion spending plan, which is being paraded as a COVID relief package is now law, Democrats will begin working on their other passion, raising taxes.
Sources have been telling me for weeks that President Biden is expected to keep his campaign promise and very soon announce the largest tax hike in three decades. A massive $4 trillion increase, which will include raising the corporate tax from 21 to 28%. It will also raise the capital gains tax on certain individuals from 20% currently to 39.6%.
It will raise taxes on the wealthiest and the highest earners. But what exactly does wealthy mean to the Democrats? That is being debated right now. It is very possible that U.S. companies and those making $400,000 or more a year will initially foot the bill for this stimulus. And, remember, only 10% of the plan is actually COVID-related.
But the tax writers may want to remember one basic fact: Money is mobile and money will go where it is treated best. We see that over and over again.