President Biden recently proposed a “billionaire tax” to allow billionaires to “pay their fair share” in taxes. Reading the fine print, the tax would actually apply to those with a total value of more than $ 100 million. Most people who will be subject to taxes are not billionaires.
For tax, those rich people have to pay income tax rate of at least 20 percent on their unrealized capital gains tax. Under current law, property owners who have increased their value will not have to pay income tax until their assets are sold. It will be changed under the President’s proposal – but only for the rich.
There are many problems with this proposal. One issue is how the proposal will be implemented. Another thing is that inflation will put more and more people in that “billionaire” category over time. What interests me most is why President Biden will propose it.
There is no chance of passing the billionaire tax. It will be controversial, and Congress will not be interested in debating the issue in an election year. After the November election, Republicans will control both the House and the Senate, proving the status of the proposal invalid.
Only a few will be taxed. Perhaps the president believes that most people will support a tax that others will pay. But the proposal gives more ammunition to the far left of the Democratic Party এল Elizabeth Warren, Barney Sanders, Alexandria Ocasio-Cortez, and their allies. Is it really a good idea to raise the voice of the extreme leftists of the party as the election draws near?
The president must understand that his proposal has no chance of being passed and that the proposal would seem bad for his party’s chances in the upcoming elections. Why the left when the success of the team depends on the application of the midfield?
Reprinted from Independent Institute
Randall G. Hallcomb
Randall G. Holcombe is a Divo Moore Professor of Economics at Florida State University. He received his Ph.D. From Virginia Tech to Economics, and taught at Texas A&M University and Auburn University before moving to Florida State in 1988. Dr. Hallcomb is a Senior Fellow at the James Madison Institute and a Senior Fellow at the Independent Institute in Oakland, California.
Dr. Holcomb is the author of over twenty books and over 200 articles published in academic and professional journals. His books are included Political capitalism: how economic and political power is created and maintained (2018) and Coordination, Cooperation and Control: The Evolution of Economic and Political Power (2020).