Erik McGregor | LightRocket | Getty Pictures
As Democrats plow ahead with a slimmed-down reconciliation package, Home 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 Minimal Earnings Tax Act, calling for a 20% levy on households price greater than $100 million, affecting roughly 0.01% of U.S. households, a congressional fact sheet outlined.
The 20% tax applies to “complete revenue,” together with earnings and so-called unrealized capital positive aspects, or asset progress, with a credit score to keep away from double taxation and an non-obligatory cost plan, according to the bill, which was launched with 30 co-sponsors.
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“Whereas working households pay taxes on every paycheck or pension cost, the ultra-wealthy could make lots of of tens of millions of tax-free {dollars} a yr,” Cohen said in a statement.
“As an alternative of all their billions going to purchasing superyachts, rocket ships, skilled sports activities groups, and Twitter, it’s time that billionaires chip in like everybody else to pay at the very least a base stage of taxes,” he mentioned.
The wealthiest 400 households paid an 8.2% average federal income tax from 2010 to 2018, in accordance with the White House. That compares to 13.03% for the average American.
Broadly, many People approve larger taxes on the super-rich, a March 2022 YouGov PLC survey discovered, with practically two-thirds supporting a minimal 20% tax on revenue of greater than $100 million.
The billionaire tax has struggled to achieve traction
These items can take years to incubate earlier than it is prepared for prime time.
Garrett Watson
Senior coverage analyst on the Tax Basis
Nonetheless, the newest billionaire tax proposal could also be a part of a “broader effort of experimenting” to see what varieties of taxes could get sufficient assist, he mentioned.
Some tax laws has a “very lengthy lead time,” with proposals mentioned for 5 to 10 years earlier than gaining transaction, Watson mentioned, pointing to the Republican’s sweeping 2017 tax overhaul.
“These items can take years to incubate earlier than it is prepared for prime time,” he added.
