Creator Forum - Racial Loyalty News Online

The Internal Revenue Code should be considered a contract between  citizens and the government. When Congress makes changes to the law,  prior promises should rarely if ever be withdrawn or modified.  Government should never subsequently punish taxpayers for arranging  their transactions as allowed by the existing tax law at the time of a  transaction. Judge Learned Hand, a federal court of appeals judge in the 1950s,  famously said, "Anyone may so arrange his affairs that his taxes shall  be as low as possible; he is not bound to choose that pattern which will  best pay the Treasury; there is not even a patriotic duty to increase  one's taxes." Today, the Ways and Means Committee of the House of Representatives  should caution that in arranging one's affairs to successfully result in  the lowest tax under the law... During the Clinton administration, the president proposed tax rules  that would provide "new rewards for entrepreneurs who take risks."...


In 2009,...  President  Barack Obama signed new legislation increasing the income exclusion to  75 percent. Completing the trifecta, in 2017, President Donald Trump  signed legislation "permanently" increasing the tax exclusion to 100  percent. Investors were required to hold their stock for a minimum of  five years before the tax exclusions would be available, along with formulaic limitations of the amount of income that would not be taxed.  Three administrations, two political parties, and over 20 years of legislation encouraged investment in new businesses through reducing the tax rates on the ultimate sale of these QSBS investments...


The Ways and Means Committee chooses to retroactively invalidate a  tax law that was put in place to encourage investment... This is the  unmaking of a 108-year-old tax system based upon integrity...  It should matter not that the current focus  of Congress is taxing the wealthy rather than encouraging new private  investment. The (our) government encouraged taxpayers to make such  investments, and the Ways and Means Committee should not suggest that  the government renege on such promises... an individual named Peter  Thiel is said to have amassed $5 billion in a Roth IRA. .. There have been no reports that Thiel has broken any tax laws or any laws whatsoever in brilliantly investing a small amount of money and waking up one morning with $5 billion in his Roth IRA. With the proposed tax rates, Thiel  could face federal and state taxes approaching $3 billion. This would be  the penalty for amazingly successful and legal tax planning.



Note that Thiel could have purchased the investments for himself directly and there would be no taxation until he sold the stocks. He might have chosen to hold these stocks until death. If held personally, Thiel would have been subject to lower tax rates upon sale as the income  would be subject to capital gains taxes. What is notable is that it appears that the Ways and Means Committee  is punishing Thiel for taking tax planning It's easy for anyone to see that the results of the tax planning done  by certain wealthy taxpayers provided benefits that Congress could  never have imagined...