Taxes in Biden's budget
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https://unusualwhales.com/news/president-bidens-new-proposed-taxes
- Capital Gains: The proposal seeks to increase the capital gains tax rate for individuals earning over $1 million to 39.6%, a significant rise from the current 20%, aiming to equalize the tax rates on investment income and wages. Additionally, it suggests raising the Medicare tax from 3.8% to 5% for those earning above $400,000, resulting in a combined federal tax rate of 44.6% on investment incomes for the wealthiest taxpayers. It also proposes the elimination of the step-up in basis for inherited assets, which currently allows gains to go untaxed upon transfer to heirs.
- Billionaires Tax: A new minimum tax rate of 25% is proposed for households worth at least $100 million, targeting the ultra-wealthy who often pay lower effective tax rates due to various tax preferences.
Income Taxes: For individuals earning more than $400,000, the proposal aims to increase the top personal income tax rate back to 39.6% from the current 37%. - Corporate Taxes: The plan suggests a rollback of Trump's corporate tax cut, proposing a top corporate tax rate of 28% up from 21%. It also intends to double the tax on U.S. companies' foreign earnings to 21% and implement a 21% domestic corporate minimum tax, up from the current 15%.
- Carried Interest: Biden proposes to abolish the carried interest loophole that allows certain investment managers to pay taxes at the lower capital gains rate rather than the higher income tax rate.
Stock Buyback Tax: The proposal includes a significant increase in the tax on stock buybacks, raising it to 4% from 1%, which aims to align the tax treatment of buybacks with dividends and encourage companies to invest in wages or equipment. - Executive Compensation and Private Jets: The budget seeks to expand restrictions on corporate tax deductions for employee compensation over $1 million and to eliminate tax breaks for private jet travel.
- Estate and Gift Taxes: It calls for stricter estate and gift tax rules to prevent affluent individuals and trusts from evading taxes, ensuring they pay additional taxes on their wealth upon death before it is transferred to heirs.
- Real Estate: The proposal aims to eliminate the "like-kind exchanges" tax break, which allows investors to defer taxes on real estate gains if they reinvest in other properties.
- Oil and Gas: Biden reiterates his proposal to end tax incentives for the oil and gas industry, including deductions for drilling costs and certain tax breaks related to mineral rights and production.
- Child Tax Credit and Earned Income Tax Credit: The plan proposes to expand the child tax credit and the earned income tax credit, returning to the more generous provisions introduced during the Covid-19 pandemic, benefiting families with children and low-income workers without children.
"Ensuring they pay additional taxes on their wealth upon death"
A wealth tax.
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There's no way any tax on unrealized income will ever pass. Most of the rest of this stuff won't either.
"The intelligent man who is proud of his intelligence is like the condemned man who is proud of his large cell." Simone Weil
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There's no way any tax on unrealized income will ever pass. Most of the rest of this stuff won't either.
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There's no way any tax on unrealized income will ever pass. Most of the rest of this stuff won't either.
@Mik said in Taxes in Biden's budget:
Most of the rest of this stuff won't either.
But hey, if they all pass, that will reduce the deficit by $3 Trillion!
You still like deficit reduction, right?
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I've said it before, but the question isn't whether it's ok to tax the filthy rich more than us regular folk. I for one am perfectly fine with it, they're not going to suffer in any meaningful way. And no, a guy worth billions didn't work a million times harder than me to get all that dosh. The question is how much can you tax them before they're forced to avoid paying it by moving, or some other chicanery.
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I've said it before, but the question isn't whether it's ok to tax the filthy rich more than us regular folk. I for one am perfectly fine with it, they're not going to suffer in any meaningful way. And no, a guy worth billions didn't work a million times harder than me to get all that dosh. The question is how much can you tax them before they're forced to avoid paying it by moving, or some other chicanery.
@Doctor-Phibes said in Taxes in Biden's budget:
The question is how much can you tax them before they're forced to avoid paying it by moving, or some other chicanery.
The other question is how much will taxing them make a substantial difference to the debt/deficit.
Years ago, I posted a video called "Eat The Rich." It's probably still on Youtube. It explains how just "tax the rich" will do nothing other than make someone feel better.
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I agree with @Doctor-Phibes that most people earning (or having) that kind of money (for example: net worth = USD$100MM+) "are not going to suffer in any meaningful way."
But, it is all relative. Someone told me that the definition of rich is someone who has more/makes more than you do. I think that mostly, people on this forum board are doing "okay". In the eyes of a lot of people, they would think that the people on here are quite rich.
