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Billionaires in the United States are proposed to impose a new tax

 

Billionaires in the United States are proposed to impose a new tax


Now the richest people in the United States pay capital gains tax only when an asset is sold. The Senate Finance Committee proposes to expand the tax base to unrealized capital gains. How to calculate it and who will be the tax payer?


Tax for 700 people. In the United States, a draft tax on unrealized capital gains of billionaires is presented.


"Our great capitalism is slowly coming to an end" - this is how the initiative of the US Democratic Party to introduce a new tax on the capital of billionaires was commented on by one of its potential payers, the owner of the American catering and hospitality giant Laundry's Tilman Fertitta.


Now the richest people in the United States pay capital gains tax only if the asset is sold - the difference between the purchase and sale prices is taxed at 20%. Democrats are proposing to extend the tax on unrealized capital gains. Have stocks gone up over the year? Kindly pay.


The norm will affect people with a fortune of more than $ 1 billion and an income of more than $ 100 million a year - according to NPR, this is about 700 of the richest people in the United States. Criticism of the norm is voiced on CNBC by New York University Business School professor Aswat Damodaran :


“How can you write the worst tax rate? First, you need to direct it to a narrow circle of people who can resist it. In this case, everything is exactly like that. The amount needs to be tied to something that is constantly changing. Capital gains are the most volatile possible tax base. And you need to make it very difficult to calculate and pay tax. As will be the case with the tax on unrealized capital gains. I couldn't even imagine a worse rate. Moreover, it also does not affect all billionaires. If a person inherited $ 20 billion and these assets do not grow, the tax does not apply to him. But if a billionaire received 2 billion and raised a company for 20 billion from them, then he will have to pay. It is fitting to call it the "tax on Bezos and Musk." The norm is due to the hostility of society towards people,


Elon Musk himself also came out with poorly veiled criticism of the project. As the richest man on Earth wrote on Twitter: "Then they run out of this money and they get to you." This means that first the tax will be extended to billionaires, and then to any investments or even pension savings.


The author of the bill, chairman of the Senate Finance Committee, Ron Wyden, considers the norm to be fair. "We expect that billionaires who have earned almost $ 2 trillion during the pandemic will pay their share of the budget, as nurses or firefighters do," the CBS senator was quoted as saying. Janet Yellen, the head of the US Treasury and former head of the Federal Reserve , also spoke out in defense of the project on CNN :


“I wouldn't call it a wealth tax. The norm will help to capture capital gains - one of the key components of the income of the richest people in the country. These funds are now largely tax-free until they are sold. And often they are not implemented at all, and after the death of the owner, the heir wins due to the so-called increased base. This is not a tax on wealth, but a tax on the unrealized capital gains of extraordinarily wealthy people. "


There are excellent philosophical and practical arguments against taxing unrealized capital gains, Axios writes, but wringing one's hands about it “killing capitalism” is ridiculous: “People will still strive to become insanely rich. Just because they are going to be insanely rich anyway. "

Billionaires in the United States are proposed to impose a new tax Billionaires in the United States are proposed to impose a new tax Reviewed by hmoob lee on October 28, 2021 Rating: 5

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