House Democrats Push For Biden’s Billionaire Minimum Income Tax

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As Democrats plod along on a slimmed-down appeasement package, House lawmakers are separately pushing another piece of President Joe Biden’s agenda: taxing the ultra-rich.

Representatives Don Beyer, D-Va., and Steve Cohen, D-Tenn., introduced the Billionaire Minimum Income Tax Act, which calls for a 20% levy on households worth more than $100 million, which is approximately It affects 0.01% of American families, a congressional fact sheet outlined.

The 20% tax applies to “total income,” including income and so-called unrealized capital gains, or capital appreciation, with a double-tax avoidance credit and an optional payment plan, according to the bill, which was introduced with 30 co-payments. sponsor.

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“While working families pay taxes on every paycheck or pension payment, the ultra-wealthy can earn hundreds of millions of tax-free dollars a year,” Cohen said in a statement.

“Instead of all their billions going into buying superyachts, rocket ships, professional sports teams and Twitter, it’s time billionaires got involved like everyone else to pay at least a basic level of taxes,” he said.

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The richest 400 families paid an average federal income tax of 8.2% from 2010 to 2018, according to the White House. That’s 13.03% for the average American.

In general, many Americans approve of higher taxes on the super-rich, according to a March 2022 survey by YouGov PLC, with nearly two-thirds supporting a 20% minimum tax on income over $100 million.

The billionaire tax is struggling to get a grip

This stuff can take years to incubate before it’s ready for prime time.

Garrett Watson

Senior policy analyst at the tax authorities

Still, the latest tax bill for billionaires may be part of a “wider effort of experimentation” to see what types of taxes can gain enough support, he said.

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Some tax laws have a “very long lead time,” with proposals being discussed five to 10 years before reaching a deal, Watson said, pointing to the Republican’s sweeping tax reform in 2017.

“This stuff can take years to incubate before it’s ready for prime time,” he added.