Posted on 03/26/2022 3:19:36 PM PDT by Oldeconomybuyer
WASHINGTON, March 26 (Reuters) - U.S. President Joe Biden will propose a minimum tax on billionaires as part of the fiscal 2023 budget that is expected to be unveiled on Monday, a document released by the White House showed.
Biden's "Billionaire Minimum Income Tax" would set a 20% minimum tax rate on households worth more than $100 million, in a plan that would mostly target the United States' more than 700 billionaires, according to a White House fact sheet released on Saturday.
The plan would require such households to pay the minimum tax of 20% on all of their income including unrealized investment income that is now untaxed, the fact sheet said.
Senate Democrats last autumn had proposed a billionaires tax to help pay for Biden's social and climate-change known as "Build Back Better" although the spending package did not move forward due to insufficient support.
(Excerpt) Read more at finance.yahoo.com ...
Bye bye billionaires.
I think there is a lot the rats may shove through during the lame duck period this year if they lose one or both houses. It could be a real nightmare
No, it's a shitload.
That’s possible, but I don’t think they’re ready to give up the fight just yet and start doing it. Maybe when their internals come in late summer showing beyond all doubt that they are going to lose both House and Senate. Then, they’ll start ramming that stuff through.
$10 mill ain’t bad...
And if the market tanks AFTER they pay the tax on ghd profit, do they get a refund?
Ha-ha! You funny!
“Unrealized investment income” is not income; it’s just profit on paper that’s not income until sold. So assume you buy a stock at $50 and it goes to $100. What if you hold it for long term and it stays around $100 for years? Do you pay tax on a $50 “profit” every year? Then when you sell it you pay tax again? What if it goes to $20? Do you get a deduction? Can you claim a loss? This proposal is total BS Squaw Warren nonsense.
Election ploy. Republicans should offer an amendment to tax only congresspersons but with a threshold of $1M
Greeeeaaaattttt. Now they want to tax profits you do not yet have.
And since a vast portion of the stock market is held by these billionares, they will dump stocks.
Which means my 401k will tank, and they will plow their money into real estate, further increasing rents and making homes more unattainable.
I swear, if you had one goal -- to destroy America -- what would you do different?
Time for another Tea Party...
Jefferson is proven right, yet again.
But the game is Bezos takes a yax free loan 9n the value of the stock and then uses it to pay for a yacht.
So he has use of the value the stocks with out selling them. That is why wealthy people often have lots of cash but little tax. When the loan comes due, take a long out on another portion of your assets and pay off the first.
North Carolina used to have an intangibles tax. As I recall it was about 1% or less on all amounts in bank accounts and brokerage accounts. This was to be paid every year. As I recall virtually nobody obeyed the stupid law and it was eventually declared unconstitutional. I think the same ruling would apply to this moronic idea.
The minimum tax and alternative minimum tax code are already in the system They just have to play with the numbers.
Hoping there’s a FReeper out ther who can explain how they would effectively tax unrealized capital gains.
Do I read this as tax preparer’s pay raise bill?
How will that bring down high gas and food prices? Or create jobs.
How hard would it be for Bezos to tank his stock on December 31 by selling more than market could bear and have straw buyer companies on buying side?
Well, I get that part of it. The part I don’t understand is how one would be expected to come up with the tax payment without selling a portion of the holdings, which would then become subject to actual capital gains taxation. I don’t see how the net effect would not, rather quickly, destroy stocks as an investment.
And for other asset classes like real estate, it’s not really possible to calculate the unrealized gain until a property is actually sold.
Of course I’m assuming that all of the talk about “billionaires” is just window dressing, and that the real intention is to come after Mr. and Mrs. middle America, where the real money is. So yeah, Bill Gates could sell some stock every year and pay this tax without a problem. But the guy with a million bucks in a brokerage account might not so easily come up with an extra hundred grand every year.
It just seems completely nuts to me.
They propose taxing unrealized gains. This is a slippery slope. So you buy stock ABC and it goes up 25%, you have to pay 5 points of that gain. So you go into pocket, or you sell off 20% of your gain to pay the tax. Stock prices go down. I suppose it is not retroactive to very long term holdings.
Didn’t read to see if this includes art, real estate etc which are not as liquid as stocks and values fluctuate with broader economic conditions. What if you own a private enterprise? How is that valued? Or are those excluded?
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