Senator Joe Manchin poured cold water into President Joe Biden’s new billion-dollar tax plan Monday night, dealing a potentially deadly blow to his prospects in Congress. Wealthy Americans should not be taxed on “things you do not have,” he said, according to Bloomberg. “You can have it on paper. There are other ways for people to pay their fair share and I think everyone should pay.” The Conservative Democrats’ reluctance could be the end of the road for the White House proposal. Democrats are closer to reviving parts of their climate and health care agendas, but they can only get to Biden’s office if all 50 Senate Democrats support it. The plan would set a minimum tax rate of 20% on households worth $ 100 million or more and extend the definition of taxable income to include the accrued value of unsold investments such as shares or bonds, otherwise known as unrealized gains. At present, investment returns are taxed only when they are sold for cash. This is the first time the Biden administration has drawn up a plan to hit the growing fortunes of billionaires, and it aims to change the way the US tax code treats income. As Insider approached Tuesday about his opposition to Biden’s proposed tax on billionaires, Manchin raised his hands and said, “You should check with them.” Most Americans get their income through a salary, but wealthier families tend to see their wealth increase through the increasing value of their financial investments. These are often taxed at a much lower rate than income – and only after they are sold for profit. A senior Democrat pushed. “No matter how this issue arises, billionaires have something of tremendous value,” Oregon Sen. Ron Weiden, chairman of the Treasury Department, told Insider, adding: share of their income in taxes compared to teachers and firefighters. Some billionaires, such as Tesla CEO Elon Musk, would pay far more taxes to the federal government under the Biden plan. Musk’s tax bill will rise to an additional $ 50 billion over ten years, according to estimates by economist Gabriel Zuckman. Manchin had also opposed a similar tax proposal designed to hit billionaires last fall from Wyden. This project was aimed at 700 billionaires and was intended to fund much of Biden’s social and climate projects. “I basically argue that everyone should pay their share,” Manchin said in late October. “And I just tried to think about it – I do not like the idea that we are targeting different people.”
