Media: Biden proposes a 25 percent tax for billionaires, he also wants to tax companies more

Media: Biden proposes a 25 percent tax for billionaires, he also wants to tax companies more

Media: Biden proposes 25 percent tax for billionaires, wants to tax more and companies

American President Joe Biden.

Washington – US President Joe Biden is proposing a 25 percent tax on billionaires, he also wants to tax wealthy investors and corporations more. According to his plan, the state's income from capital assets would thus almost double. Citing sources in the White House, Bloomberg and other media reported this today. Biden also wants to repeal tax breaks for businesses and the wealthy that were put in place by previous President Donald Trump, according to the proposal. The likelihood that Congress will approve this plan, however, appears to be low.

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Biden's budget request to Congress is expected to be released today. According to Bloomberg, it would nearly double the capital gains tax rate on investments to 39.6 percent from the previous 20 and raise taxes on corporate and wealthy Americans.

The proposal is largely a rehash of Biden's multi-trillion dollar economic package called Build Back Better. But it has little chance of passing Congress, especially now that Republicans control the House of Representatives, Bloomberg adds. Biden failed to push through a similar tax hike when Democrats still controlled both houses of Congress. Instead, the government settled for slimmed-down energy and health policy legislation known as the Inflation Reduction Act (IRA).

US administration officials say the proposals show a commitment to reducing the budget deficit largely through higher revenues. They also represent a politically popular return to tax levels in place before former President Trump's tax reform legislation. Progressives are calling for higher taxes for the wealthy, and according to repeated polls, a majority of Americans support them.

Biden's proposal calls for the richest 0.01 percent of Americans to pay at least a 25 percent tax. It would also increase the top tax rate for Americans earning over $400,000 (CZK 8.95 million) per year to 39.6 percent from the current 37 percent. That would reverse one of Trump's tax cuts.

Biden's proposal also calls for investors making at least $1 million to also pay 39.6 percent on their long-term investments. Now they are taxed at a rate of 20 percent. The proposal also raises the corporate tax rate to 28 percent from 21 percent, reversing another Trump-era tax change.