The story goes on under the ad Many billionaires can pay much lower tax rates than the average American because the federal government does not tax the value of their shares until these assets are sold. Billionaires are able to borrow against their accumulated profits without taxing capital gains, allowing huge accumulations of wealth to remain virtually tax-free by the federal government. The White House Bureau of Management and Budget and the Financial Advisory Board estimated this fall that 400 billionaire families paid an average federal tax rate of just over 8% of their income between 2010 and 2018. This rate is low. millions of Americans. The White House plan would require billionaires to pay a tax rate of at least 20 percent on their full income or a combination of traditional forms of wage income and what they might have earned from unrealized gains, such as higher stock prices. . The story goes on under the ad Billionaires who pay interest rates below that will have to pay the difference between what they pay now and the 20% interest rate. Billionaires who already pay more than 20 percent will not owe any extra taxes. The taxes paid for the minimum tax will be included in what the billionaires owe when they have to pay the usual capital gains taxes. “The minimum income tax for billionaires will ensure that the richest Americans pay a tax rate of at least 20 percent of their full income,” the White House said in a statement. “This minimum tax would ensure that richer Americans no longer pay a lower tax rate than teachers and firefighters.” White House officials estimate the tax will generate about $ 360 billion in new revenue over the next 10 years, if enacted, according to the document. The proposal was developed by Biden’s assistants in the Office of Management and Budget, the Treasury Department and the White House National Economic Council. The story goes on under the ad The White House is expected to issue a budget Monday that includes increases in defense and non-defense spending, with an emphasis on mental health, childcare, other social programs and deficit reduction, two other people familiar with the matter said. These people spoke on condition of anonymity to reflect the plan that has not yet been made public. Biden’s budget proposal will also reduce the federal deficit by more than $ 1 trillion over the next decade, according to a White House document. The news of the deficit reduction was first reported by the Associated Press. The outcry over the low tax rates of the economic elite has emerged as a major flashpoint in American politics, especially since the Liberal Democrats in the 2020 presidential election sought to tackle wealth inequality by targeting billionaires. Tax experts have long debated how to make that ambition a reality. Senator Elizabeth Warren (D-Mass.) Proposed a property tax during this campaign, which would impose an annual tax of 2 percent on all assets in excess of $ 50 million. Senate Treasury Secretary Ron Wyden (D-Ore.) This fall unveiled a “billionaire income tax” that would tax on-year earnings on stocks and other “unrealized assets.” The story goes on under the ad The White House approach represents another billion-dollar tax effort that could be approved by Congress and effectively managed by the Home Office. Wyden’s plan would be evaluated on an annual basis, with the White House giving wealthy households five years to comply with the 20% minimum tax. The White House plan also creates an initial period of nine years from enactment so that households can pay previously unrealized income. “Biden’s proposal is effectively addressing the practical challenges we have seen in previous proposals to tax very high-income households,” said Jason Furman, a senior economist in the Obama administration. However, some tax experts prefer Biden’s previous approach to taxing unrealized capital gains only when those gains are realized at death. Conservatives and other lawyers have argued that it is unclear whether the Supreme Court will overturn any measure they consider a property tax. The story goes on under the ad “We still have constitutional issues: Can the IRS collect taxes if nothing has been sold based on the wealth, the property of the taxpayers?” said Steve Rosenthal, a senior fellow at the Tax Policy Center, a non-partisan think tank. It also remains unclear whether even the most diversified approach to taxing billionaires will be approved by Democrats in Congress. House Speaker Nancy Pelosi (California) was among the Democrats who personally opposed Weiden’s billionaire tax plan, saying it was tantamount to a publicity stunt. Manchin denounced the billionaire tax as divisive last fall, though he later told the White House he could support such a move.
