Biden to Propose New Minimum Tax on Wealthiest Americans

[pecksniff]

A step in the right direction, at least.

WASHINGTON—President Biden will propose a new minimum tax on households worth more than $100 million as part of his annual budget, the White House said Saturday, in a bid to ensure the very wealthiest Americans pay at least 20% in tax on their income and rising asset values each year.

The proposal would affect fewer than 20,000 households, and it would apply only to those who don’t pay at least 20% in tax on a combination of income as typically defined and their unrealized gains on unsold assets such as stocks and closely held businesses. The plan would generate roughly $360 billion in revenue over 10 years, according to a White House fact sheet released in advance of Monday’s full budget proposal. That is about twice as much money as raising the top individual income-tax rate to 39.6% from 37%, and it would affect a much smaller group of people.
The biggest chunk of money in the new Biden plan would come from taxes on unrealized gains built up over many years, which could include much of the wealth of founders of large technology companies such as Amazon.com Inc. and Facebook parent Meta Platforms Inc. Those people could spread their initial payments over nine years; subsequent annual minimum taxes could be spread over five years.

There would be no exemptions for particular asset classes, but there would be special rules for illiquid taxpayers. People wouldn’t have to make annual valuations of illiquid assets, and they could defer some taxes—with interest charges—until death or asset sale.

The proposal is the latest Biden administration effort to capture more revenue from the capital gains of wealthy Americans. Like other Democratic ideas, it would mark a significant change in how income is defined for tax purposes, creating a whole new separate tax structure that would capture rising asset values for the government even before those assets are sold.

The Biden plan contains several features that are different from previous attempts to tax the wealthiest sliver of Americans, such as annual wealth taxes or taxing assets as if they were sold each year.

 

[YDB95]

It's about time!

 

[pecksniff]

What we really need, of course, is a tax on wealth/assets as distinct from income. That is the only way to destroy the big-money dynasties.

 

[LittleDixie]

What a bunch of thieves.

 

[pecksniff]

What a bunch of thieves.

To you, all taxation is theft.

 

[Champakian]

Proposals are a dime a dozen, very taxing and rarely go anywhere...

Income taxation as currently structured is a legalized theft.
It is an impotent exercise in wealth envy which
the wealthy have the means to circumvent
(Lots of Wile E. Coyotes and Acme tools).

Taxes should be voluntary.

FairTax.org

 

[Chobham]

So what's being proposed is a 'net worth' tax. Those that are prone to buying into that program should do some research on how the original 'income tax' was sold to the public.

 

[Champakian]

This time it will work.

Tech has made them smarter...

 

[Chobham]

This time it will work.

Tech has made them smarter...

Riiiiiiiiiiiiight.

 

[Champakian]

We'll go to electronic money and track every transaction.

The Constitution doesn't say a single thing about electronic currency.
The Founders could never have anticipated a new currency,
therefore we use our living document to proclaim,
privacy is for the bedroom,
money is public...

That'll "get" the rich and give to the poor.

:nods:

Those hands out for handouts are voters
and there are more voters that billionaires.

 

[Chobham]

Yup. The Fed, the IRS and the AOC's are making noises about going after the crypto's AND gold. They want a hand in EVERY single transaction. Silver will probably remain safe mainly because it's so ubiquitous.

 

[Champakian]

I wonder how much transaction value cannabis has?

It grows well in the forest, or under the basement grow light...

 

[LittleDixie]

To you, all taxation is theft.

Yes, because it is!

If I were to start taxing people, I would be sent to jail. Even if the people I was taxing were children of mine, and I was using the money to buy groceries or to benefit them. Any of us would go to jail for just taking part of someone else's paychecks from them.

The only thing that makes this not the exact legal definition of theft is the fact that the people who get your money have declared that what they are doing is legal.

 

[LittleDixie]

I wonder how much transaction value cannabis has?

It grows well in the forest, or under the basement grow light...

Ah, that's why they have such strict licensing laws on selling marijuana.

The government plantation master will get his money out of you or put you into jail for trying to get around his rules.

 

[Champakian]

I can throw the tax man a few primo buds out of every crop.

No biggie...

 

[Chobham]

That's another thing that has them spooked, barter trade.

 

[Champakian]

For most people it's too time consuming
and it's hard to carry chickens everywhere...

 

[LittleDixie]

For most people it's too time consuming
and it's hard to carry chickens everywhere...

I think if we go back to a barter economy, America will look a lot more like a cross between Thunderdome and the Wild West.

 

[Champakian]

Fortunately, I don't see a barter economy on the horizon.

 

[Chobham]

That's where the silver and gold come in. The people can set up their own medium of exchange. Of course the folks in the large metropolitan areas are going to be fucked.

 

[LittleDixie]

Fortunately, I don't see a barter economy on the horizon.

I don't know. Think of all of the people who have valuable things - chickens for example. If there is a chicken farmer, wouldn't he trade birds for something else? It's a sloppy way to do trade, but it's tried and true.

 

[Champakian]

Well, I do have both in my safe.
Ammo too. .223 will be a medium of exchange
(on more than one level - I'm not clever, it's just a part I play on Lit).

 

[Champakian]

I don't know. Think of all of the people who have valuable things - chickens for example. If there is a chicken farmer, wouldn't he trade birds for something else? It's a sloppy way to do trade, but it's tried and true.

If we get to that point, the city folk, in starving desperation
will be out in droves liberating farmers of their "cash" crops.

 

[LittleDixie]

If we get to that point, the city folk, in starving desperation
will be out in droves liberating farmers of their "cash" crops.

Not sure that will play out the way they expect it to.

 

[Champakian]

Most people aren't "Billy Jack" and aren't going to be able to survive a mob rush...