The minimum tax on billionaires should be included in the budget plan

WASHINGTON – The White House will ask Congress on Monday to pass a new minimum tax on billionaires as part of a budget plan aimed at reviving President Biden’s domestic agenda and reducing deficits.

U.S. households worth more than $ 100 million must pay at least 20 percent of their income, as well as unrealized gains on the value of their liquid assets, such as stocks and bonds that have accumulated value over the years. Tax is levied only when sold.

Mr. who levies taxes on millionaires. Biden’s proposal is the first time he’s openly called for a property tax. Many in his party have argued that taxes that target an individual’s wealth – not just income – should be levied. Biden has often shunned such schemes in favor of raising the upper margin income tax rate and imposing higher taxes on capital gains and estates, and raising taxes on corporations.

The “billionaire minimum income tax” applies to only one-hundredth of 1 percent of American households, and more than half of the income comes from those worth more than $ 1 billion. Those who already pay more than 20 per cent do not have to pay extra tax, however those who pay below that level have to pay the difference between their current tax rate and the new 20 per cent.

Mr. Pitton’s minimum tax payments are calculated on the tax payable on non-taxable assets by billionaires only when they are eventually sold for profit.

The tax proposal will be part of the Biden administration’s budget request for the next fiscal year, which the White House plans to release on Monday. In a document outlining the minimum tax, the White House called it “the advance payment of tax obligations by these families when they realize their benefits.”

“This attitude means that very rich Americans pay taxes when they go, just like everyone else,” the document said.

The White House also released a separate document on Saturday, amid concerns over rising inflation. Mr. Fiden said the budget plan would reduce the federal deficit by more than $ 1 trillion in total over the next decade.

Mr. Since Biden’s election as Democrats, the idea of ​​taxing wealth has intensified, looking for ways to finance their broader climate and social policy agenda and ensure that rich Americans play their fair share.

Senator Elizabeth Warren, Massachusetts Democrats, and Senator Ron Wheaton, Oregon Democrats and chairman of the Finance Committee, last year unveiled separate plans to tax the rich in different ways. Ms. Warren won the idea of ​​a wealth tax in her failed presidential campaign.

It also reflects the management’s decision to call for a wealth tax Political realities Mr. About how to fund Pyton’s economic agenda.

Moderate Democrats, including Arizona Senator Kirsten Cinema, have refused to raise the corporate tax rate or raise the top margin income tax rate from 37 percent to 39.6 percent.

Still, Senator Joe Manzin III, Democrat of West Virginia, Slapped the idea On taxing millionaires, Mr. Following the publication of Whiten’s proposal, Mr. Mancin has suggested that some kind of billionaire might support the tax.

Top executives of the Biden administration have expressed skepticism about wealth taxes in the past.

Wealth tax that last year Treasury Secretary Janet L. Said Yellen “One with the most difficult implementation issues.” Natasha Sarin, a consultant to the Treasury Department for Tax Policy and Enforcement, was the co-author of a commentary published in The Washington Post in 2019, arguing that property taxes should be paid. “Revenue Estimation Puzzle.”

Legal questions Such taxes are also plentiful, especially if the tax on wealth – rather than income – is constitutional. There are speculations that if Congress approves a wealth tax, it could be a legitimate challenge to the wealthy Americans effort.

Steven M., a senior associate of the Center for Tax Policy. Rosenthal said the White House proposal raised complex questions about how taxpayers and the Inland Revenue Service would generally assess the value of non-traded property and deal with money-losing investments. .

He said the proposed tax would be “suspicious” constitutionally.

“If we’ve never collected hundreds of billions in revenue, is it worth it?” Mr. Asked Rosenthal.

Alan Rapport Contributed report.

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