A proposed tax on super-wealthy Americans has been revealed by a US Democrat.

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A proposed tax on super-wealthy Americans has been revealed by a US Democrat.

A leading Democrat in the US Senate presented a plan on Wednesday to tax the wealthiest Americans in order to support President Joe Biden’s huge spending plan.

According to Senator Ron Wyden, who chairs the chamber’s finance committee, the proposed Billionaires Income Tax would apply to around 700 people with either $1 billion in assets or $100 million in annual income for three consecutive years, raising “hundreds of billions of dollars.”

The tax is Biden’s Democratic Party’s latest attempt to gather income to fund his enormous social spending agenda, which is expected to cost roughly $2 trillion and include initiatives such as universal pre-kindergarten and childcare subsidies.

It would also direct Washington’s taxing powers firmly at the country’s billionaires, whose wealth has grown in tandem with the Covid-19 pandemic’s misery, sparking allegations that they aren’t paying enough to the country.

“Working Americans like nurses and firefighters pay taxes on a regular basis, whereas billionaires avoid paying taxes for decades, if not permanently,” Wyden said.

“The wealthiest few can borrow against their assets to fund their lifestyles while avoiding taxes by retaining assets eternally. This implies they forego paying taxes in favor of paying cheap interest rates on Wall Street bank loans.” If passed, billionaires’ assets, such as stocks, would be assessed annually and taxed if their value rose. According to the idea, if they fell below a certain threshold, taxpayers may take a three-year write-off.

This would be a departure from current US law, which mandates that taxes on a stock’s value be paid only if it is sold.

Another new tax would be imposed on the sale of nontradable assets such as real estate or company interests, and it would account for interest on unpaid taxes accrued during the time the asset was kept.

To address fears that the tax will drive affluent people to surrender controlling shares in enterprises, the proposal allows individuals to designate up to $1 billion in stock in a single company as a “nontradable asset.”

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