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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.
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.
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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.
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.