WASHINGTON, Oct 27 — US billionaires would pay tax on unrealised gains from their assets to help finance President Joe Biden’s emerging social-policy and climate-change legislation, according to a proposal unveiled today by the top Senate Democrat for tax policy.
Wyden and other lawmakers, including Democratic Senator Elizabeth Warren, say the legislation is intended to curtail tax avoidance by corporations and the wealthy and could generate hundreds of billions of dollars to pay for Biden’s “Build Back Better” legislation, which is expected to cost between US$1.5 trillion and US$2 trillion.
But the billionaires tax faces potential opposition from Democrats in the House of Representatives, who favor straightforward hikes in tax rates for companies and the wealthy as a way to fund the Biden agenda.“Eventually they run out of other people’s money and then they come for you,” said Musk, who early this week was worth about US$230 billion, according to Refinitiv. “Who is best at capital allocation—government or entrepreneurs—is indeed what it comes down to.
The billionaires tax, which would take effect for the 2022 tax year, would affect roughly 700 taxpayers with over US$1 billion in assets or US$100 million in annual income for three consecutive years, according to a statement.