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Democrats in the House of Representatives insist on the introduction of a minimum tax on the income of the billionaire Biden

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Eric McGregor | LightRocket | Getty Images

While the Democrats are moving forward with a abbreviated reconciliation packageLawmakers of the House of Representatives are separately pushing another part of the president Joe BidenAgenda: Taxing the super-wealthy.

Representatives Don Beyer, R-Virginia, and Steve Cohen, D-Tennessee, have introduced the Billionaire Minimum Tax Act, which would impose a 20% tax on households making more than $100 million, affecting roughly 0.01% of households in the USA. Congress the actual letter outlined.

A tax of 20% applies to “gross income” including earnings and so-called unrealized capital gains or asset growth, with a credit to avoid double taxation and an optional payment plan, according to the billwhich was presented with 30 co-authors.

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“While working families pay taxes on every paycheck or pension, the super-rich can earn hundreds of millions of dollars a year tax-free,” Cohen said. the statement said.

“Instead of all their billions going to buy superyachts, rocket ships, professional sports teams and Twitter, it’s time billionaires pay at least a basic level of taxes like everyone else,” he said.

The richest 400 families paid an 8.2% average federal income tax from 2010 to 2018 The White House. This is compared to 13.03% for the average American.

Overall, many Americans approve of raising taxes on the super-rich, March 2022 Poll by YouGov PLC found that nearly two-thirds support a 20% minimum tax on income over $100 million.

The billionaire tax was struggling to gain traction

This material can incubate for years before it’s ready for prime time.

Gareth Watson

Senior policy analyst at the Tax Foundation

Still, the latest proposal to tax billionaires could be part of “broader experiments” to see what types of taxes might gain enough support, he said.

Some tax legislation has a “very long lead time,” with proposals being debated for five to 10 years before a transaction is finalized, Watson said, pointing to major tax changes passed by Republicans in 2017.

“This stuff can take years to incubate before it’s ready for prime time,” he added.

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