Biden says he supports billionaire wealth tax

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In what would be a major change in the U.S. tax code, which generally does not impose tax on investment gains until the underlying assets are sold, President Joe Biden said on Friday that he supported a proposal to tax unrealized capital gains of billionaires on an annual basis. .

Asked about Senate Finance Committee Chairman Ron Wyden (D-OR) ‘s plan to levy a “billionaire income tax” on wealthier American households, Biden told reporters at the White House that he supported such a tax as part of his efforts to offset the cost. of its ambitious social spending plans. “I support a lot of these proposals,” Biden said. “We don’t need all of the things that I support to pay for this, but I support this.”

On Thursday, after the White House released analysis showing that the wealthiest 400 households in the United States paid an effective federal tax rate of around 8.2% if unrealized capital gains were treated as a income, Wyden spoke in favor of his tax proposal.

“Instituting a billionaire income tax would go a long way in creating a fair tax code, rather than one mandatory code for workers and one optional for the privileged few,” Wyden said in a statement. Wyden and other Democratic tax reformers point out that billions of dollars in capital wealth are not being taxed in the United States thanks to the absence of latent gains taxes and the increase in the inheritance base, this which eliminates capital gains when assets are transferred to heirs.

The wealth tax proposal is currently not part of the House tax plan, but it is on the ‘menu’ of options Democrats choose from as they seek ways to pay for Biden’s social spending plan , which could amount to 3.5 trillion dollars. more than 10 years.

According to Bloomberg News on Friday, the richest 100 Americans have earned $ 469 billion in wealth so far this year, and now have a total net worth of around $ 3 trillion.

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