The tax would require US households worth more than $ 100 million to pay a tax rate of at least 20 percent on their full income, as well as unrealized gains on the value of their liquid assets, such as stocks, bonds and cash, which can accumulate value for years but are only taxed when sold. Mr Biden’s proposal to impose a tax on billionaires is the first time he has explicitly asked for a property tax. While many in his party have argued for taxes that target one person’s wealth — not just income — Mr Biden has largely distanced himself from such proposals in favor of raising the maximum income tax rate, imposing a higher tax on capital gains and capital gains. on assets and tax increases on companies. The “Minimum Income Millionaire Tax” will only apply to the top 1 percent of U.S. households, and more than half of that income will come from those worth more than $ 1 billion. Those who already pay more than 20 percent will not be subject to additional taxes, although those who pay below this level will have to pay the difference between their current tax rate and the new rate of 20 percent. Mr. Biden’s minimum tax payments would also be included in the tax that billionaires would eventually have to pay on unrealized income from assets taxed only when sold for profit. The tax proposal will be part of the Biden government’s budget request for next fiscal year, which the White House plans to make public on Monday. In a document describing the minimum tax, the White House called it “a prepayment of the tax liabilities that these households will owe when they later realize their profits.” “This approach means that richer Americans pay taxes like everyone else,” the document said. As the government addresses concerns about rising inflation, the White House also released a separate paper on Saturday saying Biden’s budget proposal would cut federal deficits by more than $ 1 trillion over the next decade. The idea of a property tax has been gaining traction since Biden was elected, as Democrats have sought ways to fund their climate and social policy agendas and ensure that richer Americans pay their share. Massachusetts Sen. Elizabeth Warren and Sen. Ron Wyden, an Oregon Democrat and chairman of the Finance Committee, released separate proposals last year that would tax the richest, albeit in different ways. Ms. Warren had advocated the idea of a property tax in her unsuccessful presidential campaign. The government’s decision to impose a property tax also reflects the political reality of how Biden’s financial agenda is financed. The moderate Democrats, including Sen. Kyrsten Sinema of Arizona, have barred raising the corporate tax rate or raising the upper income tax rate to 39.6% from 37%, leaving the party with few options for revenue growth. However, Sen. Joe Manchin III, a Democrat in West Virginia, criticized the idea of taxing billionaires after Wyden’s proposal was made public, although Mr Manchin has since suggested he could support some sort of tax. billionaires. Legal questions about such a tax also abound, especially if a wealth tax – instead of an income tax – is constitutional. If Congress approves a property tax, there has been speculation that wealthy Americans could challenge the effort.
