Americans for Tax Reform President Grover Norquist, during an interview on FOX Business' "Mornings with Maria," blasted the Democrats' "trickle-down taxation" plan to fund their massive spending bill, warning it will affect "everybody" eventually despite claims it only targets the wealthy.
GROVER NORQUIST: Maria, the first thing you have to do is drop this it only hits billionaires, okay? This is trickle-down taxation again. They will promise that it only hits billionaires today. Later, it will get everybody. The income tax was put in promising to only hit at the 7% rate, people who make more than $11 million a year in today's dollars. Many of you watching make less than $11 million a year and pay more than 7%. So the income tax was brought into the same promise that this wealth tax was brought in. Here's the other problem. There is no constitutional rule that allows a wealth tax. An income tax, yes, which is why they will design this to be a fake income tax, because if it's obvious it's a wealth tax, it'll be unconstitutional. Also, they've done this before. In the late '70s, they tried to get rid of the step up in basis because when you tax unrealized gains, that means the value of your house goes up $10,000 last year, but you don't have $10,000 in cash. But they want to tax you on that $10,000 unrealized gain. Unrealized income. It's actually your life savings, but you have to actually have to sell the house or borrow against it to be able to pay that tax. They want to do that to homes, to 401Ks, small businesses.
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