The proposal would raise more than $ 360 billion over the next decade and “ensure that richer Americans no longer pay a lower tax rate than teachers and firefighters,” according to a White House news release. The plan – called the “Minimum Income Taxpay for Billionaires” – is the most aggressive government move to date to tax the richest Americans. CNBC (@CNBC) The White House is targeting the rich with a proposed minimum income tax for billionaires. @Robtfrank joins @SquawkCNBC to analyze the details. pic.twitter.com/HS6IvHgJ41 March 28, 2022 The wealth of billionaires increased exponentially during the coronavirus pandemic, aided by rising stock prices and a tax regime that charges investors less for their profits than they are taxed for their income. “In 2021 alone, more than 700 billionaires in America saw their wealth increase by $ 1 trillion, but in a typical year, billionaires like them would pay only 8% of their total realized and unrealized tax revenue. “A firefighter or a teacher can pay double the tax rate,” the White House said in a statement. Under the plan, households worth more than $ 100 million would have to submit detailed accounts to the Internal Revenue Service for the progress of their assets during the year. Those who pay less than 20% on these winnings will be subject to an additional tax that would raise their rate by up to 20%. The Biden administration estimates that the tax will affect only the top 0.01% of US households worth more than $ 100 million, and that more than half of the revenue will come from households worth more than $ 1 billion. The budget also seems ready to address another issue that some economists have argued contributes to widening income inequality: stock acquisitions. In recent years, cash-rich companies such as Apple, Alphabet, Meta and Microsoft have used their capital to buy huge amounts of their shares, boosting their share price. Last year, S&P 500 companies repurchased $ 882 billion worth of shares, and Goldman Sachs estimates that number will rise to $ 1 trillion this year. Critics accuse the markets of diverting money from hiring new staff, raising salaries and researching and developing. Research by the Hellenic Capital Market Commission (SEC) shows that there are “clear indications that a significant number of corporate executives today are using the acquisitions as a redemption opportunity”. Biden’s proposal would prevent executives from selling their shares for three years after the announcement of the repurchase. Biden tried to impose a 1% tax on shareholdings last year, but the proposal failed in Congress. Both Biden’s billionaire tax and the share repurchase proposal will also face fierce opposition in Congress. The Washington Post published the latest news with details of the new tax proposal on Saturday. Jeff Stein (@JStein_WaPo) Scoop: Biden’s budget on Monday to propose ‘Billionaire Minimum Income Tax’ This is the first time WH has targeted the wealth of billionaires so directly It would generate a minimum of 20% on revenue over $ 100 million 400 billionaire families paid * 8.2% federal interest rate * from 2010-18 March 26, 2022
