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Thursday, July 10, 2025 at 10:10 PM
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The “Billionaires’ Tax” Will Hurt Rural Ranchers and Farmers  

The “Billionaires’ Tax” Will Hurt Rural Ranchers and Farmers  

The “Billionaires’ Minimum Income Tax” that is included in President Biden’s $5.8 trillion budget blueprint is a way to “pay-for” the many social programs that Democrats want to enact, like forgiving everyone’s student loans – including the loans of many members of Congress who will vote on the budget!  The tax is meant to raise $360 billion in new revenue over ten years, helping to reduce the deficit, and claiming to help level the wealth gap between the rich and poor.

Yet when you actually read the proposed language, the so-called income tax is anything but its title. First, the tax would apply to more than billionaires but also all those making over $100 million. While that seems a lot, let’s understand that once that tax is implemented, the rate can be lowered to $10 million or even $1 million. That will impact thousands of hardworking Nevadans, especially large ranchers and farmers.

Second, the tax doesn’t just levy a 20 percent tax on income but applies to unrealized gains on every asset belonging to the household as well—be it a business, farm, a patent, retirement, or other investment.  That is why nationally, farmers and ranchers are opposing this tax, and why I want rural Nevadans to know about this proposal. 

While legislators have attempted to propose taxing unrealized capital gains before, including a wealth tax by Senators Elizabeth Warren and Bernie Sanders, as well as the now infamous “double death tax” that would have upended multigenerational American farms, ranches, and small businesses, the strange aspect of this proposal is that almost no one likes it.

Lawrence Summers, former U.S. Treasury Secretary under President Clinton, made his opposition clear when he said, “The billionaires’ tax is a bad idea whose time will never come…It’s mislabeled to give it a kind of populist appeal.” In an interview with CNBC, U.S. Representative Josh Gottheimer provided even more doubt when he stated, “The billionaire tax and how they’ve put that forward doesn’t make much sense…I really don’t think that proposal is going anywhere.”

There are many reasons to dislike this proposed tax including the huge administrative burden and costs it would take for families to comply, not to mention the reality of adding yet another enforcement for the bogged-down IRS, already six million and counting unprocessed returns behind.

In addition, legal experts are mulling the notion that defining unrealized gains on assets as taxable income may not even be constitutional—not to mention how to split up this direct federal asset tax among states, given that not all states have billionaires.

Then there’s the overall implication of reforming our tax laws to begin capping what essentially amounts to “success” also known as “the American Dream.” European countries tried this method at attempting to fill government coffers in the name of wealth equality before, only to have it backfire in their bureaucratic faces. The wealthy began to leave countries that instituted a wealth tax, and that revenue shortfall then became a burden on the middle class. Of the twelve wealth taxes instituted in European countries in the 90s, only three remain.

Nevada will be closely watched during this election cycle. Senators Catherine Cortez Masto and Jacky Rosen have a lot on their plate—including rising inflation, spiking gas prices, economic recovery from COVID, the second worst unemployment numbers in the country, and supply chain issues. Supporting this new tax proposal just to pay for more government spending will have political consequences during these challenging times.

Rich Robledo is a small business owner, a real estate broker and a Keystone Corporation board member.

 

 


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Comment author: Mike HinzComment text: I knew Sam as a member of our church growing up. He always had a warm smile, a kind word, and a great sense of humor! He will be great missed!Comment publication date: 7/2/25, 11:57 AMComment source: Obituary -- Samuel Bruce WickizerComment author: Mike HinzComment text: Great teacher, great coach, but even a better person!!! Rest in peace Mr. BeachComment publication date: 7/2/25, 11:53 AMComment source: Obituary -- Jack Victor Beach, Jr.Comment author: Mike HinzComment text: I had Mrs Hedges for First Grade at Northside Elementary in 1969. I still, to this day, remember her as a wonderful teacher…one of my favorites!!Comment publication date: 7/2/25, 11:29 AMComment source: Obituary - Nancy Marie Hedges C Comment author: Carl C. HagenComment text: What are MFNs and PBMs ?? ............................ From the editor: This is a very good question and we apologize for not catching that wasn't in there. We reached out to the writer/submitter and got this info back...hope it's helpful. PBM: Pharmacy Benefit Managers are pharmacies that are owned by insurance companies. (CVS is one.) They negotiate with drug makers to get reduced pricing for medications, but they historically have not passed along those savings to patients. https://www.ftc.gov/system/files/ftc_gov/pdf/pharmacy-benefit-managers-staff-report.pdf MFN: Most Favored Nation pricing is a policy that means a country agrees to offer the same trade concessions (like tariffs or price reductions) to all member nations of the World Trade Organization (WTO). When applied to pharmaceuticals, it could disrupt global access, deter innovation, and obscure the deeper systemic issues in American health care. https://petrieflom.law.harvard.edu/2025/05/22/the-global-risks-of-americas-most-favored-nation-drug-pricing-policy/Comment publication date: 6/23/25, 7:47 AMComment source: L E T T E R TO THE EDITOR
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