Top US Democrat Unveils Tax Plan For Super-Rich Americans
The proposed Billionaires Income Tax would apply to about 700 people with either $1 billion in assets or $100 million in annual income for three back-to-back years, and raise "hundreds of billions of dollars," according to Senator Ron Wyden.
A top Democrat in the US Senate unveiled Wednesday a plan to tax the very richest Americans in order to fund a massive spending plan backed by President Joe Biden.
The proposed Billionaires Income Tax would apply to about 700 people with either $1 billion in assets or $100 million in annual income for three back-to-back years, and raise "hundreds of billions of dollars," according to Senator Ron Wyden, who leads the chamber's finance committee.
The tax is the latest attempt by Biden's Democratic Party to raise revenue to fund his massive social spending proposal, which will likely cost around $2 trillion and could see Washington enact policies like universal pre-kindergarten and childcare subsidies.
It would also aim Washington's taxation powers squarely at the country's billionaires, who have seen their wealth swell amid the suffering of the Covid-19 pandemic, fueling criticism that they're not contributing enough to the country.
"Working Americans like nurses and firefighters pay taxes with every paycheck, while billionaires defer paying taxes for decades, if not indefinitely," Wyden said.
"The wealthiest few who avoid taxes by indefinitely holding assets are also able to borrow against those assets to fund their lifestyles. This means they opt out of paying taxes and instead pay only low interest rates on loans from Wall Street banks."
If enacted, billionaires' assets such as stocks would be evaluated each year and taxes levied if they increased in value. If they decreased, taxpayers would take it as a write-off for potentially up to three years, according to the proposal.
This would be a change from current US law, where taxes on a stock's value are typically only paid if it is sold.
Another new tax would be levied on sales of nontradable assets like real estate or business interests and account for interest on unpaid taxes during the years the person held it.
To address concerns that the tax could force wealthy people to sell off controling stakes in companies, the proposal allows for an individual to designate up to $1 billion of stock in a single business as a "nontradable asset."
The proposed Billionaires Income Tax would apply to about 700 people with either $1 billion in assets or $100 million in annual income for three back-to-back years, and raise "hundreds of billions of dollars," according to Senator Ron Wyden, who leads the chamber's finance committee.
The tax is the latest attempt by Biden's Democratic Party to raise revenue to fund his massive social spending proposal, which will likely cost around $2 trillion and could see Washington enact policies like universal pre-kindergarten and childcare subsidies.
It would also aim Washington's taxation powers squarely at the country's billionaires, who have seen their wealth swell amid the suffering of the Covid-19 pandemic, fueling criticism that they're not contributing enough to the country.
"Working Americans like nurses and firefighters pay taxes with every paycheck, while billionaires defer paying taxes for decades, if not indefinitely," Wyden said.
"The wealthiest few who avoid taxes by indefinitely holding assets are also able to borrow against those assets to fund their lifestyles. This means they opt out of paying taxes and instead pay only low interest rates on loans from Wall Street banks."
If enacted, billionaires' assets such as stocks would be evaluated each year and taxes levied if they increased in value. If they decreased, taxpayers would take it as a write-off for potentially up to three years, according to the proposal.
This would be a change from current US law, where taxes on a stock's value are typically only paid if it is sold.
Another new tax would be levied on sales of nontradable assets like real estate or business interests and account for interest on unpaid taxes during the years the person held it.
To address concerns that the tax could force wealthy people to sell off controling stakes in companies, the proposal allows for an individual to designate up to $1 billion of stock in a single business as a "nontradable asset."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.