The White House said US President Joe Biden would continue striving to ensure that the wealthiest Americans and companies do not pay a lower tax rate than middle-class families.
The White House said in a statement released on Monday to commemorate the deadline for Americans to file their income tax returns that the president will continue to encourage the US Congress to enact measures he has suggested that would see firms and the very rich pay a higher tax rate.
Joe Biden Supports Minimum Global Corporate Tax
The White House also reaffirmed President Joe Biden's support for a minimum global corporate tax rate of 15%, which was agreed upon last year as part of the OECD process. The Republic has signed the OECD agreement.
In its draft budget for 2023, the Biden administration proposes hiking corporation tax rates. However, in order to be enacted, the measures would need the consent of Congress, The Irish Times reported.
Biden also intended to remove a scenario in which the very rich paid lower taxes than regular employees, according to the White House. President Biden wants Congress to enact legislation mandating the wealthiest American households to spend at least 20% on all of their income, including deferred investment income that is now tax-free.
For decades, the belief that the rich do not pay their "fair share of taxes" has been a pillar of the left. President Joe Biden has suggested a "billionaire's tax" to deprive the wealthy of their wealth, which would impose a minimum tax rate of 20% on all income earned by households worth more than $100 million, as well as the same tax rate on "unrealized" investment gains - effectively a wealth tax.
A lot of difficult truths are overlooked in the proposed tax. First, according to the Tax Foundation, the wealthy pay not just their "fair share" of taxes but also far more. The wealthiest 1% of income earners paid an average tax rate of 25.6 percent, about seven times that of the bottom half. The richest half of taxpayers paid 97% of all income taxes, while the lower half paid the remaining 3%. The tax code in the United States is already the most progressive globally.
Second, as the National Taxpayers Union Foundation points out, an unapportioned direct tax on wealth is certainly unlawful. Finally, any attempt to rob the affluent of their wealth would undercut both the Biden administration's space and environmental aims.
Tax in Wealthiest May Jeopardize Biden's Objectives
The wealth tax would also jeopardize the Biden administration's climate-change objectives. The dirty little secret is that private businesses invest in technology that reduces greenhouse gas emissions. When the Biden administration went into "soak-the-rich" area, it appears that it did not think things through, according to the Washington Examiner.
Sen. Bernie Sanders, an independent from Vermont, and members of "the Squad," who have targeted wealthy, successful taxpayers as enemies of the people, would undoubtedly like the plan. However, the more money that billionaires like Elon Musk, Jeff Bezos, and Bill Gates must pay the government, the less money they will spend on cutting-edge technology to address issues like space travel and climate change.
Meanwhile, the White House attacked Sen. Rick Scott's tax plan on Monday morning, accusing Republicans of planning a $1,500 tax rise on middle-class families. President Joe Biden is trying to decrease taxes for middle-class Americans, according to a fact sheet distributed on Tax Day. Republicans want to raise them. It also said that Biden's ideas would not affect anyone earning less than $400,000 per year.
In February, Scott, who leads the Senate Republicans' campaign arm, announced his policy plans. They include requiring all Americans to pay income tax - effectively a tax increase for some of the country's poorest citizens - and sunsetting all federal legislation after five years, which Democrats argue means dismantling programs like Social Security and Medicare.
Scott's party leadership has distanced itself from the ideas, claiming that they provide their opponents' fodder for attacks in the midterm elections, as per Daily Mail.
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