Senator John Kennedy (R-LA) accused President Joe Biden and Treasury Secretary Janet Yellen of supporting a tax policy designed to appeal to what he called “pink haired wokers”.

Kennedy spoke to Fox News host Tucker Carlson on Friday about Biden and Yellen’s support for changes to an inheritance tax policy called Enhanced Base, which limits the tax payable on an inherited asset that s ‘is appreciated over time.

The Louisiana senator opposes the strengthened base change and has strongly criticized the Biden administration, warning that the proposed changes “would disrupt the real estate market.”

Forbes Advisor explains that “Any asset left to an heir has its basis, or the price on which all increases in value are calculated for tax purposes, increased to its present value at the time someone inherits it. This can help them. heirs to avoid large amounts of taxes on assets that have experienced large increases in value.

Yellen said in a Senate hearing on Tuesday: “I am in favor of eliminating the reinforced base.”

“The reason is that a very large portion of the income of high net worth individuals is simply never taxed. Individuals retain these assets for their entire lives. This income is never taxed,” she said.

The administration’s plan includes exemptions for individuals of $ 1 million and $ 2 million for married couples. Carlson played a clip of Yellen from the Senate hearing and asked Kennedy about the matter.

Kennedy said, “Suppose you have a young widow with three children, she never remarries. “

“She’s going to buy a $ 150,000 house to raise her children and she brings up her children at home. She is not rich, she works. But her main asset, her only asset, is her house. Fifty years old. later she dies, “he said. continued.

“Due to inflation and 50-year appreciation, her $ 150,000 house is now worth $ 1.75 million. She leaves her home to her children,” Kennedy said. “Under the current law, his children would not have to pay income tax on this house if they did not sell the property. They would also not have to pay inheritance tax, but that is a separate issue.

“But under the Biden-Yellen rule, these kids would automatically be taxed on the full value of the house whether they sell it or not. Now it’s a little more complex than that, but the point is that these children will not have the money to pay taxes, so they will be forced to sell the house their mother worked for just to pay the taxes, ”the senator said.

Kennedy said the change would “damage” the real estate market and then criticized the administration more broadly.

“And I guess the moral of the story is that this is what happens, this is what happens when you have a President and a Secretary of the Treasury who are on a mission from God to please the haired wokers. roses that carry Ziploc bags of kale, ”Senator said.

“This is what happens when you have a president and a secretary who want to tax, spend and regulate America in neo-socialism,” he added.

President Joe Biden speaks to the media as he leaves a House Democratic Caucus meeting on the United States Capitol on October 1, 2021 in Washington, DC. Biden has been accused of attempting to call in “pink haired wokers”.
Kevin Dietsch / Getty Images

Leave a Reply

Your email address will not be published.