BIDEN TERROR: in the third quarter, an explosion in company sales to avoid taxes for the Democratic candidate

The chances of the changing of the guard in the White House are felt and entrepreneurs begin to take the first, necessary, countermeasures. Joe Biden foresees a tax reform that would increase the maximum rate for the taxation of capital gains, bringing it from the current 20% (23.8% when taking into account the additional ACA tax of 3.8%, wanted to cover Obamacare) up to 39.6%, for those earning over $ 1 million or for proceeds from a business sale of over $ 1 million. A 60% increase in the rate, or 19.6% from the tax base, which changed the attitude and decisions of corporate CEOs and CFOs.

The result is simple: investment banks and consultants are informing, and adequately frightening their customers who have invested in start-ups or financial initiatives that are not, for them, "Typical of a company", to ensure that they hurry up. to sell their company shares now, in 2020, before the new president eventually takes over. This strategy appears to be taking effect: According to Dealogic, U.S. private company share sales totaled a record $ 253 billion in Q3 2020, five times more than Q2 and a 51% increase from Q3 2019. Nonetheless, the COVID-19 pandemic has suppressed the ability to make correct company assessments for some sectors, such as, for example, the restaurant business.

In this game we have winners and losers. Many small companies are forced to sell or change management because the main investors, the holders of capital, have decided to sell before eventually being overtaxed by Biden. So if the holders of capital perhaps do not come to make the most of their investments, the pure entrepreneur risks losing their feathers. All thanks to the Democrats.

Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Register now

The article TERROR OF BIDEN: in the third quarter, explosion of company sales to avoid taxes of the Democratic candidate comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Thu, 22 Oct 2020 17:15:43 +0000.