United States

US Senate Democrats reveal Biden’s new billionaires tax

14:36, 27 October 2021
US Senate Democrats reveal Biden’s new billionaires tax Photo: pixabay.com

Senate Democrats' new proposal sees US billionaires paying a tax on unrealized gains from their assets. The received money will reportedly finance the American President Joe Biden’s social policy and climate change policies.

The new tax plan was presented by Senate Finance Committee Chairman Ron Wyden and other Democrat Senators including Elizabeth Warren.

Along with the billionaire tax it also includes a proposal to implement a 15% corporate minimum tax which will affect only the US leading companies. 

The aim of the tax is to target the widespread tax avoidance of corporations and wealthy people.

Despite many supporting the first part of the plan which is the corporate minimum tax, the second part which covers the billionaires tax will potentially face a lot of criticism in the House of Representatives.

The billionaires tax, if agreed on, will start taking effect in 2022 and it will target nearly 700 American citizens who either have more than a $1 billion net worth or have an annual income of over $100 million.

The plan also includes the proposal to impose a 23,8% tax on stocks and other tradable assets that increase in value.