shine trader live reports:
Ron Wyden, chairman of the US Senate Finance Committee, announced a tax proposal on the 27th, saying that a “billionaire income tax” would be levied to pay the Biden government’s expenses for expanding social security and combating climate change. The tax is applicable to taxpayers with assets of more than US $1 billion or annual income of more than US $100 million for three consecutive years, and the “unrealized income” or investment growth shall be taxed at the tax rate of 23.8%. There are about 700 super rich people in the United States who meet this condition. The New York Times said Democrats hope the tax bill will bring in at least $200 billion in revenue within 10 years.
According to the associated press, what does not match the high income is that the tax amount and tax rate of the super rich in the United States are very low. The survey results released by the White House on September 23 show that from 2010 to 2018, the average tax rate paid by the 400 richest billionaires in the United States was only 8.2%, far lower than the 14% paid by ordinary taxpayers. Part of the reason why billionaires can pay a lower effective tax rate is that they do not have to pay capital gains tax before their company shares are sold. The change in the Wyden proposal is that tradable assets such as stocks will be valued on an annual basis. This means that whether billionaires sell their assets or not, their income will be taxed at about 23.8%.
The Financial Times said that although Biden expressed support for the “billionaire income tax”, the proposal aroused opposition from moderates within the Democratic Party. Democratic Senator manqin directly pointed out that the “billionaire income tax” was like “targeting specific different groups”, and said “I don’t like it”. Neil, a Democrat and chairman of the house ways and Means Committee, said that Wyden’s proposal is no longer under discussion. What is being discussed is another tax proposal, which requires a 3% surcharge on people with an annual income of more than $10 million.