One of the plans featured in the $2 Trillion reconciliation bill proposed by the Democrats is the billionaire income tax which will target 0.0002% of Americans, mostly those who besides generating the most wealth - also generate the most jobs.
Looking into the program, 600-700 Americans holding stocks and bonds will be taxed annual levies on unrealized gains.
It is a huge amend from the current state of affairs as stock/bond holders pay taxes only when selling their assets.
While the bill is yet to be voted on, the public expects Senators who are against raising taxes to comment on it.
An idea proposed in the 2020 Election Campaign
The billionaire income tax is an idea that draws its roots from the last year’s Presidential campaign, supported by the Democrats, however, it isn’t fully supported by all members of the Democratic Party.
A widely known centrist, Kyrsten Sinema, the senator who caused many headaches for Biden and his incompetent administration, is yet to express her opinion on this bill, however, she declared her opposition to any tax raises in the past so it’s expected than Sinema will be “stumbling stone” to leftist agenda once again.
Justification for the annual levies on unrealized gains focuses on the fact that the wealthy use stock as collateral for obtaining loans, one of the most common methods of skirting and paying lower taxes.
Considering that, the Democratic Party wants to make everyone who earned more than $100 million for three years in a row to pay tax on stocks and bonds while they are still named holders.
As it stands, the billionaire income tax plan isn’t promising, considering that it would complicate the American tax system further.
According to Richard E. Neal, a House Ways and Means Committee Chairman, it is more efficient to propose tax raises by increasing rates instead of introducing levies on revenue.
Billionaires hiding their wealth in real estate and stocks has been a hot topic for the past couple of decades.
The latest ProPublica report revealed that two of the richest Americans, Jeff Bezos, and Elon Musk have paid $0 in federal income tax throughout 2020.
It is much less than an average citizen of the USA and the reason behind it is hiding their income through non-taxable assets such as stocks, bonds, and real estate.