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President Joe Biden is set to introduce the misleading and unconstitutional “Billionaire’s Minimum Income Tax” as part of his fiscal 2023 budget, slapping American households making more than $100 million a year with the levy to reportedly fund his progressive agenda.
The White House released a fact sheet on Saturday promoting the 20 percent minimum tax, painting it as the rich paying their fair share when in reality it is the blatant redistribution of wealth taking place. If it goes through, the left will ostensibly not stop at 20 percent. Although it has “billionaires” in the title of the tax, that is misleading as it will affect far more Americans than that.
Major media outlets ran with headlines that did not accurately portray the tax. The New York Times story headline was misleading, “Biden to include minimum tax on billionaires in budget proposal.” The Washington Post also ran a headline that was not, in essence, factual, “President Biden to unveil new minimum tax on billionaires in budget.”
The tax will allegedly apply to the top 0.01 percent of American households. Biden is claiming that over half of the revenue raised would come from households worth more than $1 billion.
“President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire,” claims the fact sheet justifying a non-capitalist seizure of wealth. “He also believes that it is wrong for America to have a tax code that results in America’s wealthiest households paying a lower tax rate than working families.”
The billionaire tax plan @JoeBiden is unveiling is the dumbest thing I’ve read in a long while. @SquawkCNBC @JoeSquawk how does this make it to public consumption?
— Efforting (@ToeCorrea) March 28, 2022
“America’s imbalanced tax code means that many millionaires and billionaires end up paying lower tax rates than middle-class workers,” the fact sheet contends. “This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.”
The Washington Post first reported the proposed tax on Saturday. The White House asserts it will reduce the deficit by approximately $360 billion over the next 10 years but those claims seem dubious.
The 20 percent tax rate would be on the wealthiest’s “full income.” That would include standard taxable income as well as unrealized income such as gains from stocks. It will almost certainly cause the wealthy to flee the country to freer places to do business and to take jobs with them. The tax will also reportedly affect ordinary households, not just the wealthiest.
Taxing people on unrealized capital gains may be the most financially illiterate idea anyone has come up with in the last 500 years and keep in mind, Communism was invented in that same time period.
— John Hawkins (@johnhawkinsrwn) March 27, 2022
The Washington Post noted that the justification for the oppressive tax was that many billionaires “pay far lower tax rates than average Americans because the federal government does not tax the increase in the value of their stock holdings until those assets are sold” and that they can then “borrow against their accumulated gains without triggering taxes on capital gains.”
“In effect, the Billionaire Minimum Income Tax payments are a prepayment of tax obligations these households will owe when they later realize their gains,” the fact sheet added. “This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else, and eliminates the inefficient sheltering of income for decades or generations.”
The proposal must be passed by Congress before going into effect. The Democrats hold a slim majority in both the House and the Senate so it is unknown if the tax will prevail or not.
A “billionaire” tax on households worth $100 million. Is that because of the record inflation, or because our government doesnt understand that $100 million is $900 million away from $1 billion? Is that why we’re $20 trillion in debt; they think it’s only $2 trillion?
— NeuroticGuru85 (@Guru85Neurotic) March 27, 2022
Senate Finance Committee Chairman Ron Wyden (D-OR) previously unveiled a billionaire tax proposal last fall that focused on taxing investment gains of taxpayers with assets exceeding $1 billion or income of over $100 million. It failed to gain traction.
The president is expected to release his budget proposal for fiscal 2023 on Monday. Typically, presidential budgets are not passed by Congress. But they do indicate priorities set for the coming year.
Biden was already eyeing increasing taxes on the wealthiest in America as well as corporations to fund his domestic “Build Back Better” agenda. After that stalled, he is regrouping, hoping to pass a scaled-back version of the legislation.
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