(FreedomBeacon.com)- Remember when President Donald Trump was overseeing record stock market highs, including the Dow Jones industrial average hitting a record 30,000 in the final month of his presidency?
Well, those days are over.
Rather than a “mean” president who liked Twitter too much, we now have a president who has the cunning ability to crash the stock market with just a few words – and this week, President Biden exercised that power.
Stocks erased all their earlier gains on Thursday afternoon when President Joe Biden formally announced that he plans to increase the capital gains tax rate, hurting Americans who have enjoyed gains on their stocks, shares, and investments.
Yahoo Finance reported how the Dow dropped over 250 points, or 0.7%, immediately after reports revealed the president’s new plans. The S&P and Nasdaq also erased gains and traded at session lows.
It’s a bad sign for the U.S. economy, with President Biden refusing to listen to Republicans who have repeatedly warned that hiking taxes will hurt the economy and push businesses – and jobs – out of the country.
Biden appears to be proving the theory that Democrats just like to hurt the economy, and Republicans are elected to clean up their mess…
Under the president’s new plan, capitals gains tax would be increased on the wealthiest in the country to 39.6%. A Bloomberg report provided the vague information, but no clarification on who is considered “wealthy” was offered.
Candidate Joe Biden promised last year that his tax plans would not involve any hike in taxes for anybody earning less than $400,000 per year – but White House Press Secretary Jen Psaki walked back that promise last month when she revealed that it would actually affect individuals earning over $200,000.
And individuals earning $200,000 aren’t exactly the “wealthiest” in the country…
“What we have is the absence of a catalyst. Everything that we’ve done over the last twelve months has been to build up to this point, to get this recovery, to get a very, very strong second-quarter GDP, which we think could be upwards of 10%,” Jim Caron, a portfolio manager from Morgan Stanley told Yahoo Finance.
“But after that, things start to slow down. It doesn’t mean that the data gets bad, it just means on a relative basis that the third quarter will be weaker than the second quarter and the fourth quarter may be weaker than the third quarter,” he added.
President Biden is on a roll, announcing a slew of new tax hikes lately – meaning that the stock market could be set for some rocky months – and years – ahead.