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Joe Biden’s government submitted to Congress a budget project of 5.79 billion dollars, with greater spending on defense, and which it seeks to finance by raising taxes on corporations and the richest. We explain what it is about.
To justify a tax increase for the wealthiest families in the United States, President Joe Biden used the following example: “A firefighter and a teacher pay more than double the tax rate of a billionaire. And that’s not fair”.
But his intention is just a proposal embodied in the final budget project for 2023, which is now entering its legislative process after being presented on Monday, March 28.
The $5.79 trillion plan, up from $5.85 trillion in 2022, includes a “minimum income tax” for billionaires as part of an effort to reduce the federal deficit over the next decade and fund new expenses.
“For most Americans, the last few years have been very difficult and have pushed them to the limit, but billionaires and large corporations have become richer than ever,” the head of state said.
Rep. Porter explains President Biden’s proposed billionaire tax: “For most of us, a dollar we earned is a dollar we put on our tax returns. But for the ultra wealthy, when they earn an extra dollar, it’s a dollar that they’re able to defer taxation on.”https://t.co/FtrJa3XTRK
— MSNBC (@MSNBC) March 29, 2022
How would the tax be applied to the richest?
The tax It would be aimed at about 700 people and seeks to raise more than 360,000 million dollars in the next decade. The White House estimates that the tax rate of the richest today is 8% and that this same group increased their wealth by a trillion dollars in 2021 alone.
Those who amassed a fortune of more than 100 million dollars would pay 20% annually on their income and on the “unrealized gains” that correspond to the valuation of an asset that has not yet been sold.
David Gamage, professor of tax law at the University of Indiana, explained to the AP agency that “it is not a wealth tax, it is an income tax reform.” In other words, it does not necessarily tax assets, but rather income.
With AP and Reuters
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