Quite a few legislators in Congress have been considering a billionaire tax plan that would help cover the cost of social spending. On the other hand, the White House has decreed that the cost of legislation would be paid via revenue and not through deficit spending. The proposal from the lawmakers would be applied to those individuals who have around $1 billion in assets- or who have an income of over $100 million for three straight years. This involves close to 700 of the wealthiest people in the country.
Billionaire Tax Plan- A Necessity?
Such a proposal seems to be getting brighter by the day, as the Democrats have decided to cut into the social spending package of President Joe Biden from its earlier sum of $3.5 trillion to around $2 trillion. This has led to them coming to the conclusion of a billionaire tax plan which would help pay for it.
Kyrsten Sinema, the Senator from Arizona, then decided to oppose the increase in corporate taxes along with the taxes on the wealthiest Americans– something the administration under Joe Biden had thought of- is currently at an equilibrium.
Ron Wyden, the Senate Finance Committee Chair, mentioned that it would be a pretty big mistake to not implement the billionaire tax plan. This would be because the package was supposed to be about letting the entire country progress as one- and from a political perspective, it would be quite a detriment to the economy of the country, along with the social infrastructure, if the top 1% were not asked to pay a fair share.
He further commented that the tax plan was all about fairness, whilst showing the American people taxes weren’t absolutely mandatory for them- while it was simply optional for the wealthy. As of now, there wasn’t a single individual in the country who wouldn’t have a problem with the billionaires never paying taxes.
The billionaire tax plan would first revalue all the tradable assets which include stocks, against the market every single year so that the billionaires would be paying their taxes on gains, and then take deductions for their losses- even if they chose not to sell their asset.