Billionaires beware, President Joe Biden is planning to propose a “minimum tax” that would take 20 percent of the total income of Americans worth over $100 million.
That means Elon Musk, the world’s richest man, would need to cough up an extra $50 billion in taxes.
The “Billionaire Minimum Income Tax” plan is part of the White House’s 2023 budget, set to be unveiled on Monday, according to The Washington Post.
It is the first time a tax targeting the 700 richest people in America has been proposed and it aims to close a so-called loophole that allows billionaires to borrow against their accumulated stock gains without facing capital gains until their holdings are sold. As the majority of the very rich have much of their assets tied up in investments, current laws essentially allow the wealthiest among us to continue amassing their wealth tax-free.
“The Billionaire Minimum Income Tax will ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their income,” according to a White House administration document obtained by The Post.
President Biden to unveil new tax on billionaires in budget – The Washington Post https://t.co/leaRHWc5xk
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The announcement comes as Sen. Joe Manchin III (D-WV), who along with Sen. Kyrsten Sinema (D-AZ) effectively killed President Biden’s Build Back Better agenda, has reportedly re-ignited Democrat discussions about the controversial climate and social spending bill. As The Post notes, previous attempts at taxing billionaires have failed and it is unclear whether this one will get Manchin’s and Sinema’s support.
The Biden administration argues that, because their unrealized gains are not taxed, billionaire families pay just over 8 percent of their income to the IRS, a rate that is lower than that paid by millions of working Americans.
“This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters,” the White House document states.
Under the new plan, those households which earn more than $100 million would pay at a rate of at least 20 percent on their full income, or on a combination of their wage income and profits earned in unrealized gains. Those currently paying below that rate will be required to make up the difference between their current tax bill and the 20 percent rate, with the taxes paid towards the minimum tax rate counting toward whatever they must ultimately pay in ordinary capital gains taxes.
Wealthy households would have five years to comply with the 20 percent minimum tax.
For the insanely rich, like Tesla chief executive Elon Musk, the tax plan would owe an additional $50 billion in taxes, while Amazon’s Jeff Bezos, who also owns the Washington Post, will need to pony up an extra $35 billion, according to University of California Berkeley economist Gabriel Zucman.
Developed by Biden aides at the Office of Management and Budget, the Treasury Department, and the White House National Economic Council, Biden administration officials estimate the plan would generate around $360 billion in new revenue over the next decade and reduce the federal deficit by more than $1 trillion over the same period.
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The difference between 360 Billion and 1 Trillion is the taxes that we non-billionaires are going to pay. It’s interesting how they leave that part out.
What about all the illegal Money that the Biden Family made that was never Taxed
Only accounting by politicians would expect $360B in taxes to reduce the deficit by $1 Trillion.
So millionaires and billionaires who own businesses, ball players, sports teams, grocery companies, transportation companies, auto manufacturing and sales, etc. will pay more taxes out of their right pocket and increase prices to put more money into their left pockets, and that money will once again come out of the blood, sweat and tears of the poor and low income hardest working Americans. Thanks again, Brandon. You ffff …. 1 d 1 0 t.
So Joe and Hunter will pay too with their ill gotten stolen monies? These Dems are so full of horse manure their breath stinks. What a crock. All they want to do with this additional money is give it to illegals in anticipation that they’ll vote for them, to terrorist countries who want to kill Americans at their first chance or pay Russia to start a war with us. These fools think we’re dumb, but come November they’ll find out who is dumb. Joe needs to be impeached upon the Dems loosing the election when the R’s take over the House and Senate. He is by far the most incompetent president that this country has seen in its 246 year history even though he is just a sock puppet.
What a great idea! Piss off all the big tech billionaires so they will start censoring Democrats / Communists instead of conservatives!
Even if they tax the wealthy by 80-90%, still won’t pay for the trillions in deficit. I seriously doubt this plan will come to fruition unless done by executive order after 2022 midterms red tsunami.
By the time the lobbyists get done writing this bill it will have more loopholes than Swiss cheese. How will we the people know if they paid the 20% or not? The corrupt IRS will hide that information And the MSM will not look for it!
Flat tax is the only fair tax and all ,pay the same rate regardless when they spend money. This is just another smoke and mirrors bunch of crap.
Just like any other scheme this one will never do what it says. The law will be crafted by politicians who have not been in actual accounting practice for years and will be decimated by $1,000.00 an hour CPA’s laughing all the way to the bank!
They can do that right after the IRS goes through all the illegallyacquired Biden money the Russians and Chinese have been paying him. And don’t forget the money the Mexican drug cartels are paying him to keep the border open.
Watch how fast the super rich move their money offshore. This dea will cost the US money, not generate income for the government. All the rich income will now be going to offshore corporations the IRS can’t touch. Let’s go Brandon. FJB
How about having the IRS go after Biden for misuse of the S Corp tax law and also his ill gotten gains from political payoffs by the University of Pennsylvania Biden Center and Hunter’s deals with Communist China and Bursma in the Ukraine?
Biden should be in jail for tax evasion.
So Joe/Hunter will be paying more taxes ?
What I’d love to know is just what the heck did JFK do to deserve a bullet that this thief in our white house hasn’t done ten fold?
I’d like to know who authorized that nut case to give our tax dollars to other countries. We don’t get any write offs on that ya know. I say Ukraine owes the American Tax payer a ton of money. The most corrupt country in the world and Biden’s ten percent coming out of it. I just wonder how much of that Billion Biden just gave em is he putting away?
Hey Dems U pay in 2 OK
Guess Dementia Joe just made MORE enemies and another drop in the polls. He seems to think that POOR people provide jobs to the working class of the country. SO since he STEALS all his wealth and HIDES it Offshore he doesn’t care.
spend spend spend fjb
These idiots in congress can spend $50B at that drop of a hat. It’s more for them to spend. FJB
it makes me wonder about the rest of us. How much will our taxes go up and to what level? I cannot imagine paying thirty billion in taxes. At least I don’t have to worry about that.
no worry for billionaires
The last federal budget passed under regular order was signed into law in September of 2007 for fiscal year 2008. Everything after that has been a series of continuing resolutions, omnibus spending, baseline budget expansions and debt ceiling increases. There has never been a full budget process worked through in the past 14 years. 2008 FEDERAL DEBT – $8 TRILLION – TODAY $30 Trillion
What a crock that it will reduce the federal deficit. If they do manage to get this money, the govt will have it spent before it hits the books