US President Joe Biden will make a call to Congress to impose a minimum tax on billionaires as part of several proposed tax hikes on the country’s wealthiest individuals and corporations. The minimum tax imposed would be 25%. The proposed spending plan would also nearly double the capital gains tax for investments from 20% to 39.6%.
The Spending Plan
Biden will unveil his plan amid sharp tension between the two parties on taxes, spending, and debt reduction. This kicks off what is likely to be tense negotiations between the White House and Congress. Currently, republicans and the White House are in a stand-off regarding raising the debt ceiling, which is the total amount of money the government is allowed to borrow, amidst a $31 trillion national debt.
More From Biden
Biden said that his plan will shave the country’s debt down by nearly $3 trillion over the next 10 years, and this will be achieved mostly through increasing taxes. During his state of the union in February, Biden called on congress to support higher taxes on the rich and “reward work, not just wealth”. During a speech last week in Virginia, the US president claimed that only a small percentage of Americans would be affected by the proposed tax hikes, that is, those with an annual salary under $400,000 “will not pay an additional single penny in any tax”. According to Biden, households worth more than $100 million should pay at least 20 percent in taxes on income and unrealized gains from investments they haven’t sold.
Wrap Up
The President is making an effort to address the “tax the rich” agenda that so many Americans have voiced their opinion on. Whether or not it all works out the way it’s intended, remains to be seen.