President Joe Biden says he’s in favor of the so-called “Billionaire's Income Tax” that would charge billionaires on unrealized gains rather than on assets sold, among other tax proposals to help pay for the $3.5 trillion economic stimulus package, according to news reports.
“I support a lot of these proposals. We don’t need all of the things I support to pay for this, but I do support that,” Biden said at the White House after giving a speech about Covid-19 vaccines, The Hill writes.
The Democrats are working on a variety of measures to raise the money, aimed at bolstering the economy in the wake of the coronavirus pandemic as well as address broader issues such as climate change. Earlier this month, the House Ways and Means Committee approved returning the top marginal tax rate to 39.6% but opted to raise the top capital gains rate to just 25%, from 20%, even though Biden’s proposal envisioned making the two top rates equal.
Senate Finance Committee chairman Ron Wyden, D-Oregon, meanwhile, has been advocating for several years for an annual tax on wealthy Americans’ holdings rather than on the gains when investments are sold, The Hill writes.
“Instituting a Billionaire’s Income Tax would go a long way toward creating one fair tax code, rather than one that’s mandatory for working people and another that’s optional for the fortunate few,” he said in a statement Thursday, according to the publication.
Wyden’s statement came on the heels of a report from the White House that the average federal income tax rate from 2010 to 2018 on the 400 wealthiest American families was just 8.2%, the Hill writes.
But it’s unclear whether the proposal will become part of the broader plan, and it wasn’t part of the packaged approved by the House Ways and Means Committee earlier this month, according to the publication.
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