Wyden and other lawmakers, including Democratic Sen. Elizabeth Warren, argue that the legislation aims to reduce tax evasion by businesses and the wealthy and could generate hundreds of billions of dollars to pay for Biden’s climate and social plans, which are expected to cost between $ 1.5 trillion and $ 2 trillion.
The White House backs the minimum corporate tax, which would dovetail with a recent 136-country global agreement, targeting companies that pay little or no taxes because they circumvent the international tax system.
Nevertheless, The billionaires tax faces possible opposition from some Democrats in the House of Representatives, who prefer outright tax rate hikes for businesses and the wealthy as a way to fund Biden’s agenda.
Elon Musk, CEO of Tesla Inc., criticized the plan on Twitter.
“At some point they run out of other people’s money and then they come after you,” said Musk, whose fortune earlier this week was valued at about $ 230 billion, according to Refinitiv.
“Who is given the best allocation of capital – government or businessmen – is really what it comes down to,” Musk added.
Not all billionaires oppose the plan. George Soros, the liberal investor and activist, supports ithis spokesman told Reuters on Monday.
The The billionaires tax, which would take effect for fiscal year 2022, would affect about 700 taxpayers with more than $ 1 billion in assets or $ 100 million in annual revenue. for three consecutive years, according to a statement.
Attendees said it would impose the 23.8% tax rate for long-term capital gains on marketable assets, such as stocks, that increase in value throughout the year, whether or not they have been sold. It would also allow taxpayers to deduct losses in value of assets.
The tax would also impose levies on billionaires’ holdings in companies set up as pass-through entities and in trusts, including real estate investment, according to a statement.
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