Republican Louisiana Sen. John Kennedy said Thursday that the Biden administration wants to “tax unrealized gains on inherited property” because it is a “mission from God to please pink-haired wokers.”
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“Tucker, it’s really pretty extraordinary,” Kennedy told Fox News host and Daily Caller co-founder Tucker Carlson.
“For the first time in the history of ever, President [Joe] Biden and [Treasury] Secretary [Janet] Yellen want to tax unrealized gains on inherited property.” (RELATED: ‘The Mona Lisa Of Incompetence’: Sen. Kennedy Flames Biden For Leaving Billions Of Dollars Of Equipment ‘To The Enemy’)
“And I guess the moral of the story is, this is what happens – this is what happens when you have a president and a treasury secretary who are on a mission from God to please pink-haired wokers who carry around ziplock bags of kale. This is what happens when you have a president and a secretary who want to tax, spend and regulate America into neo-socialism.”
To illustrate the effect of the new tax law, Kennedy cited a hypothetical “young widow with three children… [who] goes and buys a $150,000 home to raise her kids.” The senator said that the house is the woman’s only asset and by the time of her death the home is worth $1.75 million due to inflation.
“She leaves her home to her kids. Under current law, her kids would not have to pay any income tax on that home if they didn’t sell the property. They wouldn’t have to pay any inheritance tax either,” Kennedy said.
“But under the Biden/Yellen rule, those kids would automatically be taxed on the full value of the home, whether they sold it or not.” The senator said the children will not have sufficient funds to pay the taxes on the home so they would “be forced to do a fire sale” and essentially lose their primary inheritance.
“And this … the United States has never done this, never,” Kennedy said, noting that the policy “is going to affect millions and millions of middle class Americans” and “maul the real estate market.”(RELATED: Sen. John Kennedy Rips Biden After News Of $2 Billion Halt To Border Wall)
Treasury Secretary Janet Yellen speaks during a Senate Banking Committee hearing on Tuesday. (Kevin Dietsch/Pool/AFP via Getty Images)
Yellen has warned that not raising the debt ceiling will cause “irreparable harm” to the U.S. and that the government will run out of money in October if it is not increased. She also warned of rising inflation after initially dismissing it as an economic danger.