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President Joe Biden‘s budget proposal scheduled to be released on Thursday, reportedly calls for a 25% minimum tax on billionaires. The plan would also nearly double the capital gains tax rate for investment to 39.6% from 20% and increase income levies on corporations and wealthy Americans, Bloomberg reported, citing a White House official familiar with the proposal.
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The proposal is expected to face a lot of resistance in Congress, especially with Republicans controlling the House of Representatives, the report added.
Biden failed to pass similar tax hikes when Democrats controlled both chambers of Congress and instead, settled for a slimmed-down legislation focusing on energy and health policy known as the Inflation Reduction Act, as per the report.
Tax Hikes: The proposal would require the richest 0.01% of Americans shell out at least a 25% tax rate, Bloomberg reported. It would also raise the top tax rate for Americans making $400,000 to 39.6% from 37%, reversing Donald Trump’s tax cuts.
The proposal also requires investors making at least $1 million to pay a 39.6% tax on long-term investments, currently taxed at a 20% rate. The proposal would hike the corporate tax rate to 28% from 21%, the report said.
“My budget will ask that the rich pay their fair share so the millions of workers who helped build that wealth can retire with the Medicare they paid into,” Biden tweeted on Wednesday.
Other Specifics: Biden is also proposing an end to valuable industry-specific tax breaks for private equity fund managers, oil companies, and investors in crypto and real estate, the report stated, citing a summary of the plan. All special tax preferences for oil and gas companies would also be canceled, which would save $31 billion, it said.
House Speaker Kevin McCarthy dismissed Biden’s plans to hike levies, telling reporters Wednesday, “I do not believe raising taxes is the answer.”
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Image and article originally from www.benzinga.com. Read the original article here.