Billionaire Minimum Income Tax: How much does America's 10 richest people owe under the new rule?
On Monday, Biden proposed a new tax rule calling American households with over $100 million to pay at least 20% on all of their income, including unrealized investment income without being taxed yet.
According to the White House, "Billionaire Minimum Income Tax" is part of President Joe Biden's fiscal year 2023 budget proposal, and the new tax rule aim to make the tax code fairer and reduce the deficit by about $360 billion in the next decade.
Traditionally, income tax usually refers to the taxable paychecks, property, trusts and other sources of realized income such as capital gains from the stocks trading and dividend. However, for most billionaires, their net worths are driven by assets like bonds and stocks. While only the increasing value between the bought and sold will be taxed as capital gains, which are taxed at a lower rate than a paycheck.
The tax will apply only to the top one-one hundredth of one percent (0.01%) of American households (those worth over $100 million). Over half of the revenue will come from households worth more than $1 billion."
--- the White House
--- the White House
Roughly 700 billionaires would be affected by the tax rule. They could spread the initial payments on unrealized gains over 9 years, and then 5 years for top-up payments on new income going forward. The way to stretch out payments over multiple years is to smooth yearly variations in investment income, while ensuring the wealthiest still end up paying a minimum 20% tax rate.
Let's check out how much America's 10 richest people should pay for their tax bills.
The top 10 billionaires alone would owe at least $215 billion in the next decade."
--- Leading inequality researcher Gabriel Zucman estimated, based on Bloomberg Billionaire Index
--- Leading inequality researcher Gabriel Zucman estimated, based on Bloomberg Billionaire Index
Source: The White House, Business Insider
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo Official Account
Welcome to moomoo chat room.
6733Followers
3Following
9949Visitors
Follow
WizofWS : They won't let it happen. too many lawmakers are in their pockets. Stop allowing Congress and government employees to trade in the stock market to make it so they don't benefit from insider trading of information they know before anyone else.
CoyoteCapital : The government mismanaged our money for years putting us in a huge amount of debt and propping everything up with toothpicks while they all became wealthy. The people got pissed and demanded accountability. The government then taxed people more to fix all the problems of government corruption and mismanagement. Then everything was solved!!
hgar CoyoteCapital: it would help if voters didn't have the collective iq of a cabbage and the gullibility of a golden retriever fetching a nonexistent stick
BFarmer0718 : Why should our nations wealthy pay for the mismanagement and poor fiscal planning from the government? How about fix the fraud and corruption from within the system and the issue will repair itself.
HereForTheTrades : Assets don't always go up in value. Taxing unrealized gains is a bad idea. VAT taxes with various credits or rebates for anyone below median income make more sense. But the real problem is government over spending.
Ken Gillespie : billion means nothing when your talking trillions spent
Judelaw HereForTheTrades: I agree, it doesn't make sense to tax unrealized gains. They aren't even guaranteed yet. have to come up with a different plan
71639044 : I am poor, but I don't think this kind of communist means of killing the rich.
71639044 : I opened my eyes. People who hate the rich will support such extortion.
70973694 : This is BS…one you’re going to confiscate this and what next year, they’re not going to have as much and the revenue will go down and then it will be well let’s go after the middle class 401k’s there’s trillions there. It’s a simple over spending and mismanagement. He’ll make Hunter pay his taxes and then maybe I’ll listen.
View more comments...