Fox Business' Stuart Varney discussed what fellow Fox Business host Larry Kudlow called President Biden's "confiscatory" tax plan, remarking that the oppressive taxation coming down the pike has essentially empowered the Democratic Party's socialist wing.
Biden, who ran as a moderate Delaware Democrat, defeated socialist-independent Vermont Sen. Bernie Sanders in the 2020 Democratic presidential primary, but the former's fiscal policy proposals in office seem to closely mirror the latter's politics, Varney said Tuesday on "Varney & Co."
During the program, Kudlow explained how Biden's proposed hike on capital gains taxes -- the taxes paid on profits from the sale of an investment; stocks, real estate, or otherwise -- is the "dumbest tax hike in history."
"Look at the tax policies and the big-government policies that this administration is proposing -- and even if they get just half of what they are proposing you still are going way down the road towards big government and more taxes this is not going to change," Varney replied. "So, therefore [will] this exodus from the high tax democrat states speed up some more?"
Kudlow said that indeed the "trendlines" of economic and residential exodus from the liberal Mid-Atlantic states and California are "unmistakable."
"Capital is very mobile, so we can move from state to state -- and it could also move from country to country and I fear that a tax on investment, the huge hike in the corporate tax, the 28% and the…doubling of the capital gains tax -- which is confiscatory.
"So the people who suffer the most, by the way, are to the owners and investors. It’s the middle class because corporate tax burden falls 70% on the blue-collar middle-class, academic study after academic study shows that."
Kudlow remarked that the U.S., under Biden's plan, will exceed corporate and investment taxes in Sweden, China and other developed nations, likely stymieing U.S. growth.
"This is redistribution, assault on investment and it makes left-wing ideology -- I will say [Rep. Alexandria Ocasio-Cortez] is correct: the progressive left won Biden’s heart, absolutely," he said.
"The real president of the United States today is Bernie Sanders and the Vice President is AOC -- and I don’t think I’m too far out of line, I really don’t," Varney replied.
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Ocasio-Cortez, a Democrat from The Bronx, N.Y., has railed against investment and capital gains, declaring in 2019 that "capitalism is irredeemable."
Kudlow later added that while people on the far left rail against capital gains and the like, middle-class workers also often hold investments that are beneficiaries of such gains -- and will therefore also be punished by the "confiscatory" Democratic tax plan.
He called on the Republican Party to argue against Democrats based predominantly on policy:
"Biden’s policies are antigrowth, anti- recovery. They are prosperity killers, but the GOP should move away from personalities -- and focus on the policies and if they do because the country doesn’t agree with these massive spending and taxing policies and if they do they will carry the midterms next year, but if they squabble with themselves personality-wise -- if it is a circular firing squad for the GOP than the progressive left it will hold on. I hope the GOP wises up."