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U.S. Senate Democrat unveils ‘billionaires tax’ for Biden agenda

Billionaires would pay a tax on unrealized profits from their assets to help finance President Joe Biden upcoming social-policy and climate-change legislation, according to a proposal released on Wednesday by the senior Senate Democrat for tax policy.

The so-called billionaires tax, announced by Senate Finance Committee Chairman Ron Wyden on Tuesday, is part of a two-pronged legislative strategy that also includes a proposed 15% corporate minimum tax on the most profitable U.S. businesses.
The bill, according to Wyden and other lawmakers, including Democratic Senator Elizabeth Warren, is intended to prevent corporations and the wealthy from avoiding taxes and could raise hundreds of billions of dollars to help pay for Biden’s “Build Back Better” bill, which is expected to cost between $1.5 trillion and $2 trillion.

The White House supports the corporate minimum tax, which would be in addition to a global corporate minimum tax recently agreed upon by 136 countries and aimed at companies that pay little or no tax through the international tax system.
However, Democrats in the House of Representatives may resist the billionaires tax, preferring to fund Biden’s agenda with simple tax rate increases for businesses and the wealthy.

According to a report, the billionaires taxation, which would take full effect for the 2022 tax year, would affect approximately 700 taxpayers with assets above $1 billion or annual income over $100 million for three years in a row.

According to aides, long-term capital gains on tradable assets such as stocks that increase in value throughout the year will be taxed at a rate of 23.8 percent, whether or not they are sold. It would also make it possible for taxpayers to deduct losses on assets.

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The tax would levied on billionaire ownership shares in firms constituted as pass-through entities and trusts, including real estate investment trusts, according to a statement.

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