American News Oct 1, 2021 10:00 AM EST

WATCH: Senator Kennedy tells Tucker Carlson that Biden's new tax plan is an attack on middle-class Americans

Yellen's idea is that people's assets should be taxed on their increase in value even if they haven't sold those assets and realized that value in cash.

WATCH: Senator Kennedy tells Tucker Carlson that Biden's new tax plan is an attack on middle-class Americans
Ari Hoffman Seattle, WA

Senator John Kennedy (R- LA) joined Tucker Carlson on Fox News Thursday night to discuss President Joe Biden's Treasury Secretary Janet Yellen's plan to tax unrealized capital gains as income. Yellen's idea is that people's assets should be taxed on their increase in value even if they haven't sold those assets and realized that value in cash.

Senator John Kennedy slammed the tax plan, saying that "It's going to maul the real estate market and the market for other long-term assets. 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, who are on a mission from God to please pink haired 'wokers' who carry around Ziploc bags of kale. This is what happens when, when you have a president and a secretary, he won't attack spend and regulate America in the neo-socialism."

Carlson laid out the tax plan, saying "...if you own something that has become more valuable over time, including your house, Jenny Yellen believes you should be taxed on the rise in value. She said that again, this week on Capitol Hill, when she proposed taxing the unrealized gains of inherited assets, again, that would include real estate. What would that mean? That would be millions of Americans would owe taxes. They'd be forced to pay money they don't have."

Yellen had previously said that she supports the tax because, "...a very large share of the income of wealthy individuals is simply never taxed. Individuals hold onto these assets during their lifetime, that income is never taxed. And we know that for some of the wealthiest individuals in the country, they pay very low taxes overall because most of their income takes the form of unrealized capital gains."

Carlson called her out for her hypocrisy. "Janet Yellen is one of the wealthiest Americans. She made millions and millions and millions in payoffs from the banks after leaving the federal reserve."

"But what she's really saying is that any asset you own, again, including your house, you've had your house for 30 years," Carlson said, "real estate prices go up, partly because of speculation by big real estate holding companies, and all of a sudden, the increase in value in your house means you have to pay tax to the federal government money that you don't have. This would bankrupt a lot of people who are not rich. by the way, Yellen also conceded the Democrats could raise the debt ceiling right now without the support of Republicans."

"Secretary Yellen's suggestion that we tax the increase in value in assets that people own, and for, I think for average people, literally average people, this means real estate. So what would that mean for people who make 300 grand a year, but whose house says doubled in value? That's a lot of people. Where would they be if this became law?" Carlson asked Kennedy.

Senator Kennedy grilled Yellen at a Senate hearing recently, and said, "It's really pretty extraordinary. For the first time in the history of ever, president Biden and Secretary Yellen wants to tax unrealized gains on inherited property."

Kennedy continued, "And let me explain what that means. Let's suppose you've got a young widow with three children. She never remarried. She goes and buys $150,000 home to raise her kids. And she raised her kids in the home. She's not rich, she works, but her main asset, her only asset is her home. 50 years later, she dies, as a result of inflation and appreciation over 50 years, her $150,000 home is now worth $1.75 million.

"She leaves her home to her kids. Under current law, her kids would not have to pay any income tax on that home," Kennedy said. "If they didn't sell the property, they wouldn't have to pay any inheritance tax either, but that's a separate issue. But under the Biden Yellen 'roof,' those kids would automatically be taxed on the full value of the home, whether they sold it or not."

"Now it's a little more complex than that, but the point is," Kennedy continued. "Those kids are not going to have the money to pay the taxes. So they're going to be forced to, to do a fire sale on the home that their mom worked for just to pay the taxes. And this, this, the United States has never done this never. This is going to affect millions and millions of middle class Americans."

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