Jimu news reporter Sun Zhe
According to the BBC reported on March 29, the White House recently released documents showing that as part of the 2023 fiscal year budget, the Biden administration will propose a "minimum income tax for billionaires", which refers to a minimum tax of 20% on the wealthiest families in the United States. This "rich tax" will ensure that the wealthiest Americans no longer pay less tax rates than teachers and firefighters, the documents said.
It is worth noting that the Biden administration's proposed "rich tax" covers unrealized gains.
Musk Infographic (Source: BBC)
Unrealized income is income from assets such as stocks or real estate that have not been realized after they have appreciated.
Previously, the U.S. taxation method was only for standard taxable income, and the existing tax policy was difficult to tax the unrealized gains of the rich. Incomes such as stock earnings are the main source of wealth growth for many rich people.
In a report last June, CNBC pointed out that American super-rich people like Musk, Bezos and Buffett have not paid any federal personal income tax in some years. This is because their wealth is largely based on the appreciation of stocks and real estate, which are not considered taxable unless these assets are sold.
Screenshot of related reports (Source: CNBC)
Gabriel Zuckerman, an associate professor of economics at the University of California, Berkeley, believes that if the Biden administration's "rich tax" proposal is approved, then in the next 10 years, Musk will have to pay an additional $50 billion in taxes, Bezos will pay an additional $35 billion, and Buffett will have to pay an additional $26 billion.
Screenshot of related report (Source: BBC)
In fact, this is not the first time that "unrealized gains" have been mentioned. Last October, Democrat Ron Wyden, chairman of the U.S. Senate Treasury Committee, unveiled a tax proposal that would tax the unrealized gains of America's richest billionaires.
At the time, Musk posted on social media to bash it. He wrote: "They end up spending someone else's money and then they come to you." ”
Analysts believe that the Biden proposal may still face some obstacles in Congress, it is understood that if the proposal can be passed, the next 10 years, the US government will reduce the deficit of about $360 billion.