Manchin says he does not support the president’s plan to tax the billionaires’ unrealized profits, which would set a new precedent for taxing the value of a theoretical asset before it is sold and converted into cash. “You can not tax something that is not earned. “Earned income is what we rely on,” he told The Hill. “There are other ways to do it. “Everyone has to pay their share.” “Everyone has to pay their share, that’s for sure. “Unrealized profits are not the way to do it, as far as I am concerned.” Mancin’s opposition means that Biden’s proposal is probably dead just one day after it was revealed by the White House. It could be significantly restructured to avoid taxation of unrealized profits, which would be a major challenge in trying to make up for lost revenue. The problem with taxpayers’ regular income tax only is that many of the nation’s richest people, like Jeff BezosJeffrey (Jeff) Preston Bezos NASA announces renewed tender for lunar expedition contracts MacKenzie Scott says he has seen nonprofits MacKenzie Scott makes the biggest donation since he promised to donate most of his wealth MORE and Elon MuskElon Reeve MuskHillicon Valley – Biden’s budget boosts Antitrust funding Equilibrium now helps Sustainability military blows Musk is seriously considering building his Twitter rival MORE. can pay little or no income tax by not declaring income. Conversely, the extremely wealthy can often take out loans by securing the value of their assets to finance their affluent lifestyle. “Here’s what they do. They go to their accountant. They say to their accountant, “Make sure I have no income, no salary.” And then they say, “Make sure I can buy, borrow, and die.” “And no one knew anything about it years ago, and now the world is pretty ready,” said Ron Weiden-Ronald (Ron) Lee Wyden, chairman of the Senate Finance Committee. Biden to propose minimum tax for billionaires in the budget Thomas’s scrutiny is intensifying after the latest revelations MORE (D-Ore.), Who announced his own proposal to tax the unrealized profits of billionaires. Wyden says imposing a minimum tax of 20 percent on billionaires is about ensuring that they pay a similar percentage of their wealth in taxes to middle-class Americans. He described Biden’s proposal as “solid”. The structure of a tax on unrealized capital gains is complicated because the value of the assets can fluctuate. “The problem with this particular tax is that it’s a tax on unearned profits,” said Republican Sen. Whip John ThuneJohn Randolph Thune. Supreme Court fight shows GOP wants to oust Trump Rand Paul impasse Why does Congress want China to win? MORE (SD), member of the Finance Committee. “It basically taxes people before they actually receive income, and that seems like a really dangerous precedent in tax legislation, because if you make a profit one year and then a huge loss next year, how will the government get back to the people for losses?” he said. “We have always had a principle in our tax policy that a profit must be made, that income must be collected in order to be taxed, and that completely undermines that principle,” he added. “It’s basically a property tax, but I think it’s a dangerous precedent.” Wyden said his proposal would affect individuals and families who see their asset values ​​decline after paying tax on unearned profits. “What we have always said is that losses will be taken into account. We have talked about it. “The president talked about it,” he said. The White House’s budget office said in a press release on Monday that the tax would apply only to the richest 0.01 percent of households with more than $ 100 million in assets. Half of the estimated revenue it would generate would come from billionaires. “It will ensure that, in any given year, they pay at least 20 percent of their total income into federal income taxes,” the Office of Management and Budget said. Experts in tax and financial planning warn that Biden’s proposal would be very difficult to implement and would lead to a huge tax blow to the very rich. Mallon FitzPatrick, chief executive of Robertson Stephens, a boutique asset management company, said the proposal would make it more difficult to transfer inherited wealth. “A lot of this proposal is aimed at people who are just slowly increasing their wealth and not paying taxes because they do not realize any profit and expect to transfer the wealth to their heirs or anyone else without paying taxes to it,” he said. . “The big, big rich are based on that. “That’s why I think they are not popular,” he said. But he added that it was “difficult to enforce”. “You are asking for the first time I know people to mention their clear position,” he said. “They will report on their own or have a professional report on how rich they are. “It’s just [very] complex as I read it “, he observed. “It is not completely completed.” According to Biden’s plan, taxpayers with assets over $ 100 million should report to the IRS on an annual basis the total estimated value of their assets in specific categories as well as their liabilities. More liquid assets, such as stocks, will be valued using year-end market prices to determine unrealized capital gains. The increase in the value of non-market assets, such as businesses and real estate, will be determined by what the Ministry of Finance calls a “conservative floating annual return” calculated at the government rate for five years plus 2 percentage points. Taxpayers will be able to repay the large initial tax blow in nine annual installments. FitzPatrick calls Senator Elizabeth Warren’s proposal “derivative” Elizabeth WarrenEnergy & Environment – Biden seeks nearly $ 1 billion in EPA funding Environmental organizations reveal sanctions only with encryption proposals: Warren’s US MORE (D-Mass.) proposal to impose a 2% annual tax on net worth of households and trusts between $ 50 million and $ 1 billion and an annual surcharge of 1 percent – or 3 percent in total – in net worth of households and trusts over $ 1 billion. He said the proposal could potentially tax unrealized gains on assets dating back years or decades. Warren on Tuesday praised the president’s proposal as addressing some of the constitutional concerns raised about her own plan, which has been criticized by some Republicans as an unconstitutional seizure of wealth. “The president wants to do everything. “Invest in education, health care, housing and reduce the deficit and he is willing to ask billionaires to pay more taxes to do that,” he said. Speaking about the billionaire tax, he said: “I would have gone further, but I like the direction in which the president is going.” “It quite elegantly sidestepped the constitutional issue that some people wanted to raise in relation to my proposal,” he said. “The president has removed this issue from the table and it is good for him.” Biden’s tax plan needs the support of every member of the Democratic Senate to pass through the upper house, as no Republican would vote for it. Democrats still hope to pass some sort of fiscal reform as part of the fiscal reconciliation process to circumvent a GOP philosophy.