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As Democrats plow ahead with a slimmed-down reconciliation bundle, House lawmakers are individually pushing one other piece of President Joe Biden’s agenda: taxing the ultra-wealthy.
Reps. Don Beyer, D-Va., and Steve Cohen, D-Tenn., have launched the Billionaire Minimum Income Tax Act, calling for a 20% levy on households value greater than $100 million, affecting roughly 0.01% of U.S. households, a congressional reality sheet outlined.
The 20% tax applies to “total income,” together with earnings and so-called unrealized capital positive factors, or asset development, with a credit score to keep away from double taxation and an optionally available fee plan, in accordance with the invoice, which was launched with 30 co-sponsors.
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“While working families pay taxes on each and every paycheck or pension payment, the ultra-wealthy can make hundreds of millions of tax-free dollars a year,” Cohen stated in an announcement.
“Instead of all their billions going to buying superyachts, rocket ships, professional sports teams, and Twitter, it is time that billionaires chip in like everyone else to pay at least a base level of taxes,” he stated.
The wealthiest 400 households paid an 8.2% common federal revenue tax from 2010 to 2018, in accordance with the White House. That compares to 13.03% for the common American.
Broadly, many Americans approve increased taxes on the super-rich, a March 2022 YouGov PLC survey discovered, with almost two-thirds supporting a minimal 20% tax on revenue of greater than $100 million.
The billionaire tax has struggled to achieve traction
Still, the most recent billionaire tax proposal could also be a part of a “broader effort of experimenting” to see what kinds of taxes might get sufficient assist, he stated.
Some tax laws has a “very long lead time,” with proposals mentioned for 5 to 10 years earlier than gaining transaction, Watson stated, pointing to the Republican’s sweeping 2017 tax overhaul.
“This stuff can take years to incubate before it’s ready for prime time,” he added.