Current Events > Biden to propose 20% minimum tax on Billionaires

(+) Yeah! (+)

https://www.cnbc.com/2022/03/26/president-joe-biden-to-propose-new-20percent-minimum-billionaire-tax-.html

President Joe Biden is expected to propose a new minimum tax that would largely target billionaires when he unveils his 2023 budget, according to a document obtained by CNBC.
Called the Billionaire Minimum Income Tax, it would assess a 20% minimum tax rate on U.S. households worth more than $100 million. Over half the revenue could come from those worth more than $1 billion.

This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters, the document said.
The proposed levy is expected to reduce the deficit by about $360 billion in the next decade, according to the document.
If a wealthy household is already paying 20% on their full income, they wont pay an additional tax under the proposal. If they pay less than 20%, theyll owe a top-up payment to meet the new minimum.
As a result, this new minimum tax will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations, the document stated.
The new tax proposal is part of Bidens 2023 budget expected to be released on Monday. His new spending plan would trim $1.3 trillion from the deficit over the next decade, according to a fact sheet released from the White House on Saturday.

What remains to be seen is whether Congress will move forward on Bidens proposal. Last year, Senate Democrats unveiled a billionaires tax, which would have levied the unrealized capital gains of the wealthiest Americans. The measure ultimately did not proceed.
In fiscal year 2021, the federal deficit totaled nearly $2.8 trillion about $360 billion less than in 2020, according to the Congressional Budget Office.
The swift economic recovery after pandemic lows is also a factor in lowering the deficit. The White House credited the American Rescue Plan, crafted to support relief to struggling Americans during the Covid crisis, for helping the economy grow 5.7% in 2021.
Not only will less economic and pandemic support be needed for people and businesses, but a stronger economy means higher incomes for households and businesses. Because of this, the government is projected to collect more than $300 billion in additional revenues compared to last year, the fact sheet stated.

Ib4 temporarily embarrassed millionaires whine and bitch about a tax that would never, and could never, apply to them

give the money to me

It's a start at least.

Looks like it's an income tax, so it's not the "eat the rich" smorgasbord CE seems to want all the time.

Billionaires should not exist.

let me tell you how bad this is for me, someone who makes under 100k a year

Buy me a house @Jeff Bezos

ZMythos posted...

Billionaires should not exist.

Why?

Most are people who own multiple businesses, that's it.

On topic: Nah, money is always better in the hands of private entities.

Should be more like 50%. They rewrote the laws to avoid paying their fair share and forced the working class to cover our share and theirs. They need to be severely punished for this, for at least a decade.

Bad idea. This will lead to the rest of us paying higher prices and getting lower wages. Success should be rewarded. Jeff Bezos and Elon Musk have done so much for humanity.

ExtremeLuchador posted...

Bad idea. This will lead to the rest of us paying higher prices and getting lower wages. Success should be rewarded. Jeff Bezos and Elon Musk have done so much for humanity.

Yeah, that's it, lick those boots

Maybe the billionaires will share some of their money with you if you do a good job

Manchin: "no"

ExtremeLuchador posted...

Bad idea. This will lead to the rest of us paying higher prices and getting lower wages. Success should be rewarded. Jeff Bezos and Elon Musk have done so much for humanity.

Should be a 100% tax. Just to see the look on your face when you're right in the middle of licking a boot and suddenly the repo man takes the boot off and you're licking Elon Musk's socks, and now you have sock fluff on your tongue.

I like the spirit but sadly this isn't how reality works.

If you make a 20% on Income Tax then Billionaires will just change how they and their companies recieve their money so it doesn't come through as income.

It's not like big businsess are paying tax in the first place.

This will work maybe once before they move outside the USA.

RiKuToTheMiGhtY posted...

This will work maybe once before they move outside the USA.

It's an income tax, so it's a meaningless political weasel-game of appearing to accomplish something, but actually doing nothing.

the fact that it's already not even 20% is troubling tbh

They should pay higher taxes. These jakovs have yachts, jets and other toys that do more damage to the environment than any one normal person does in a lifetime.

UnfairRepresent posted...

I like the spirit but sadly this isn't how reality works.

If you make a 20% on Income Tax then Billionaires will just change how they and their companies recieve their money so it doesn't come through as income.

It's not like big businsess are paying tax in the first place.

if they can do that, why wouldn't they already be doing it to avoid paying in the first place?

Gotta love how people think these people have the cash to cover a tax on the "unrealized gains" of the companies they own going up in value. Hmm let's see, Amazon stock goes up and bezos' worth goes up 1 billion. He takes home about 8 million in cash salary, which means he'll only be short of paying his tax bill by 192 million dollars (plus the 1.6 mill on the cash salary).

People that think this will work are either idiots or intentionally trying to cause a default that would let the government confiscate all assets.

SweetieBeIle462 posted...

Why?

Most are people who own multiple businesses, that's it.

Nice oversimplification.

All billionaires made their wealth through exploitation of workers, governments, and environments. Every single one.

Their wealth is illegitimate and in a perfect world all of their assets would have been seized and they would be rotting in prison.

lightwarrior78 posted...

Gotta love how people think these people have the cash to cover a tax on the "unrealized gains" of the companies they own going up in value. Hmm let's see, Amazon stock goes up and bezos' worth goes up 1 billion. He takes home about 8 million in cash salary, which means he'll only be short of paying his tax bill by 192 million dollars (plus the 1.6 mill on the cash salary).

People that think this will work are either idiots or intentionally trying to cause a default that would let the government confiscate all assets.

I missed the part where that's my problem

lightwarrior78 posted...

which means he'll only be short of paying his tax bill by 192 million dollars (plus the 1.6 mill on the cash salary).

But he can just sell stock!

right?

right?

Unrealized?

This is never passing.

archedsoul posted...

Unrealized?

The only mention I see of unrealized gains is another tax proposal that fizzed early.

Will this be passed before or after the proposal to convert Air Force One into a unicorn?

darkmaian23 posted...

Will this be passed before or after the proposal to convert Air Force One into a unicorn?

That how it worked when Teddy Roosevelt was president.

is this an income tax or a wealth tax? are you telling me rich people income tax is below 20% in america???

Questionmarktarius posted...

The only mention I see of unrealized gains is another tax proposal that fizzed early.

It says it in the article TC posted. Bloomberg also makes it much clearer that it's for income and unrealized capital gains.

https://www.bloomberg.com/news/articles/2022-03-26/biden-to-propose-20-tax-aimed-at-billionaires-unrealized-gains

archedsoul posted...

It says it in the article TC posted. Bloomberg also makes it much clearer that it's for income and unrealized capital gains.

https://www.bloomberg.com/news/articles/2022-03-26/biden-to-propose-20-tax-aimed-at-billionaires-unrealized-gains

Oh, damn. There goes your 401k, everyone.

archedsoul posted...

It says it in the article TC posted. Bloomberg also makes it much clearer that it's for income and unrealized capital gains.

https://www.bloomberg.com/news/articles/2022-03-26/biden-to-propose-20-tax-aimed-at-billionaires-unrealized-gains

Lmao any taxes at all for unrealized gains are never going to happen.

How tf would you tax unrealized gains?

lilORANG posted...

How tf would you tax unrealized gains?

Make them realize those gains?

Questionmarktarius posted...

Oh, damn. There goes your 401k, everyone.

My billion dollar 401k? Or you just mean the index fund and economy?

ChocoboMog123 posted...

My billion dollar 401k? Or you just mean the index fund and economy?

A tax on unrealized gains creates a huge disincentive to create gains (or at least gains the public markets will index) which is what your 401k is riding on.

It used to be higher anyway

What_ posted...

It used to be higher anyway

well... the Eisenhower era is when America was Great.

lightwarrior78 posted...

Gotta love how people think these people have the cash to cover a tax on the "unrealized gains" of the companies they own going up in value.

You sell the equity and that's the cash you have to pay the tax. Don't understand why this is such a hard concept to grasp.

Questionmarktarius posted...

A tax on unrealized gains creates a huge disincentive to create gains (or at least gains the public markets will index) which is what your 401k is riding on.

My 401k isn't affected by this because it's not worth 100 million

Yay unskilled workers are gonna lose jobs!

HovaRex posted...

Yay unskilled workers are gonna lose jobs!

They are literally begging for unskilled workers rn

USER INFO: HOVAREX
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arbok

Tyranthraxus posted...

My 401k isn't affected by this because it's not worth 100 million

A tax on unrealized gains means those gains need to be realized (cashed in) to cover the taxes, and a bunch of holding being sold off at once will tank the markets. Then there's no useful purpose of having a bull market ever again, but a huge incentive towards bear markets if unrealized-losses can somehow offset unrealized-gains taxation.

Just because he's a Rookie User who thinks we have to lick billionaire's butts or else the world will crumble, doesn't mean he's etc, etc.

Bad idea, it opens the door to charge different professions higher taxes

Questionmarktarius posted...

A tax on unrealized gains means those gains need to be realized (cashed in) to cover the taxes, and a bunch of holding being sold off at once will tank the markets.

Incorrect.

The amount of volume you'd need to sell to drop Amazon by like 10% is going to be worth billions more than whatever the taxes are.

Tyranthraxus posted...

They are literally begging for unskilled workers rn

And they'll fire more if the most selfish class in America is forced to pay more taxes. Do you honestly believe different?

APokemonEnding posted...

USER INFO: HOVAREX
<img src="https://gamefaqs.gamespot.com/a/avatar/HovaRex.jpg">
Rookie User User Since: Mar 2022Karma: 18Active Posts: 50Total Badges: 1
arbok

Boy why you posting my info

Tyranthraxus posted...

Incorrect.

The amount of volume you'd need to sell to drop Amazon by like 10% is going to be worth billions more than whatever the taxes are.

elon musk says he only has income when he sells stocks, no stock sold he owes nothing, sounds fair to me