Fox News just obtained a document that describes what Biden is planning in his 2023 budget, a plan that includes a so-called “minimum tax” that would apply a 20% minimum tax to those households worth $100 million or more. As Fox Business reports:
Dubbed the “Billionaire Minimum Income Tax,” the Biden administration proposal, as highlighted in the document, aims to “ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income, including unrealized appreciation.”
As part of the plan, a 20% minimum tax rate would be placed on U.S. households worth more than $100 million, with more than half the revenue coming from households worth more than $1 billion.
“This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters,” the document stated.
Describing what the new tax will do, the document allegedly said that the plan will “make America’s tax code fairer and reduce the deficit by about $360 billion in just the next decade.”
It added that “In effect, the Billionaire Minimum Income Tax payments are a prepayment of tax obligations these households will owe when they later realize their gains. This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else, and eliminates the inefficient sheltering of income for decades or generations.”
On one hand, squeezing billionaires is hardly the worst thing, particularly considering the effect that money “donated” to leftist groups by obscenely wealthy billionaires had on the 2020 election.
Less money in their pockets is less money that they can use to buy up US farmland, buy up the housing supply to turn American into a land of tenants, or donate to leftist causes.
The counterpoint is that then the government has the money and can waste it, so pick your poison.
Beyond that issue of whether it’s less bad for the government or obscenely wealthy to control huge sums, the real issue is why, if Biden really wants to reduce the government, he’s not targeting those that already pay nothing in taxes.
The socialists might not think that the wealthy are paying their “fair share,” but going after the few people worth more than 100 million dollars for taking a tax write-off seems far less efficient than going after the households that pay nothing in taxes.
57% of American households paid no federal income tax in 2021. Perhaps a few of those were billionaires with smart tax avoidance strategies, the ones targeted by the bill, but the vast majority weren’t.
If the goal really is revenue and making sure everyone pays their “fair share,” then going after that massive chunk of America seems far more effective and efficient.
Of course, that’s not the goal. The goal is for Biden to be able to say that he’s going after the oligarchs and paying down the debt while not really doing all that much to bring the billionaires to heel or get federal spending under control. So instead of the smart, efficient move we’re getting the soundbite policy.
This story syndicated with permission from Will, Author at Trending Politics
"*" indicates required fields