Six Stocks To Buy To Beat The “Biden Tax Bite”

The Taxman is coming… and he is hungry.

President Biden is laying out one of the most "expansive" budgets anyone has seen since the 1960s. Even Jimmy Carter couldn't have dreamt all this up.

Want some examples? I'm talking about:

  • Free school for some folks from pre-school up through college.
  • Two years of community college, free for everybody.
  • A full $1 billion increase in food stamps.
  • Massive tax breaks for electric vehicles.
  • Big bucks for renewable energy.
  • Yet another infusion for healthcare.

Of course, nothing comes free. And that includes the Biden spending plan, which creates a deficit of $1.8 trillion this year and $1.3 trillion a year over the next 10 years – resulting in a national debt of $39 trillion (117% of projected GDP) by 2031.

Stock, Trading, Monitor, Business

Image source: Pixabay

Here's the problem: Somebody will have to pay for all this.

The Tax Terror Looms Out There

Even after taxes rise, there will still be a deficit of almost $2 trillion, which means after the budget is passed, there will still need to be higher taxes down the road.

Biden has promised that the taxes will hit corporations and the wealthy, but anyone who believes we won't feel the squeeze from those tax hikes has another thing coming.

Businesses will pass those increases on to us in the form of higher prices. Cryptocurrencies will lose their "free as the breeze" status. Capital-gains tax hikes will wreak havoc with stock prices.

That retirement nest egg may look a lot smaller up close than it did 10 years before the "Golden Years Finish Line" – courtesy of lower after-tax income and slashed securities gains.

Even the 2017 "Trump tax cuts" will all expire.

There are also provisions that require financial institutions to tell the government about every transfer over $600 – an unconscionably low threshold. And of course, the Biden budget expands the Internal Revenue Service (IRS), so it can hire an army of tax collectors to chase down every penny.

Yep, the Taxman is coming, and there's no way to stop him. The good news, like I said, is you can stay ahead of him – on a permanent basis.

The solution is elegant, deceptively simple, and, when you think about it, poetic justice: You can offset the ravages of higher taxes by cashing in on the wave of federal spending that taxes will be hiked to pay for.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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