It’s crunch time and Joe Biden and the Democrats are getting desperate.
That’s leading Biden and his allies to stumble into several blunders that will cost them dearly down the road.
And now Joe Biden set himself up for a massive Supreme Court defeat with this illegal act.
Democrats are in the end game of trying to piece together the votes for Joe Biden’s trillion-dollar-plus socialist welfare and Green New Deal spending bill.
Biden, Nancy Pelosi and Chuck Schumer are scrambling to invent enough gimmicks to claim the bill is fully paid for and will not add one cent to the national debt.
That is a complete lie but with inflation chugging away like a runaway train Democrats don’t need anymore attacks centered on the Federal Reserve devaluing the dollar by printing trillions more new dollars to fund this attempt to turn America into a socialist state.
Democrat Senators Kyrsten Sinema and Joe Manchin opposed raising individual and corporate tax rates so Biden and his allies needed a new plan to soak the “rich” on taxes.
Oregon Democrat Ron Wyden and Biden administration Treasury Secretary Janet Yellen devised a scheme to tax 1,000 billionaires on unrealized capital gains.
Normally, investors pay a tax when they sell a stock and make profit.
Under the Wyden and Yellen tax hike investors face tax hikes if the assets increase in value even if they never sold them.
But this new tax hike is already facing one giant problem – it’s unconstitutional.
Article I, Section II of the U.S. Constitution states that “Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers.”
In the 1980s the Supreme Court struck down an income tax on the basis it was not apportioned in across the states according to population.
That’s when Congress amended the Constitution to create the income tax with the 16th Amendment where the language specifically eliminated any apportionment requirement.
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration,” the 16th Amendment reads.
Experts weighed in and explained the uphill fight Democrats face in getting this tax on unearned income through the courts.
Vice President of Tax Policy and Litigation at the National Taxpayers Union Foundation Joseph Bishop-Henchman told the Wall Street Journal this tax was likely unconstitutional.
“Anything that involves a large amount of dollars and has some non-frivolous angles to challenge it, you’ll see a challenge,” Bishop-Henchman explained. “To the extent that it’s unapportioned and on unrealized income and mandatory, it’s going to raise serious constitutional questions.”
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