Though he claims he has zero problems with American success and capitalism, President Joe Biden is going after American billionaires with a new tax proposal, the Daily Mail reports.
Biden is looking at this tax proposal, and others, as a way to pay for his bloated, multi-trillion-dollar social spending package. Whether the tax proposal will be supported by key Democrats, however, remains unclear.
Reports indicate the billionaire tax proposal is currently being written by Senate Finance Committee Chairman Ron Wyden (D-OR) in conjunction with the U.S. Treasury, and Biden’s White House.
The proposal would target those Americans who make more than $100 million per year for three consecutive years. All-in-all, it would mean the tax would be levied on roughly seven hundred Americans.
Biden’s new tax proposal would specifically place an annual tax on the stocks and bonds of the individuals who fall into that category.
Currently, assets such as stocks are only taxed when they are sold, despite the fact that the wealthy use these untaxed items to obtain loans. This is a common tactic used by the wealthy to pay considerably lower taxes than you would expect them to have to pay. Sometimes, it even allows them to get out of paying taxes altogether, but it’s not illegal.
Would it work?
The answer is almost certainly no.
Many are arguing that the only outcome as a result of Biden’s billionaire tax proposal is that those particular wealthy Americans will simply stop buying taxable properties, such as stocks, and instead put their money into other non-targeted items, such as collectible works of art.
In addition, many have argued that taxing this small group of people in such a way would not raise enough money to offset the multi-trillion-dollar price tag of Biden’s spending proposal. The proposal is still being intensely negotiated, but it appears that it will come in at somewhere in between $1.5 and $3.5 trillion.
Another problem for Biden is the fact that one key moderate senator, Sen. Krysten Sinema (D-AZ), will not support the tax proposal. To be clear, Sinema has yet to comment on this particular proposal, but she has made it clear in the past that she opposes such tax increases on the wealthy.
The billionaire tax proposal would be included in the spending bill that the Democrats are working on. Given the current makeup of the Senate, Sinema going against the bill would be enough to kill it. The same is true for Sen. Joe Manchin (D-WV), but reports indicate that he might actually be on board with the idea, as Breitbart noted.
Democrats are expected to take action on the spending bill in the near future.