How does it work and what is the purpose?

A creation New tax on large assets. The purpose of this tribute is to fund the investment and social spending projects proposed by President Joe Biden.

According to the Democrats’ proposal, those with an annual income of more than $ 100 million or more than $ 1 billion in assets are expected to be taxed for three years.

With it, you can access Amazon and Facebook owners Jeff Bezos and Mark Zuckerberg, in addition to Musk, respectively.

Ron Wyder was responsible for tabling the bill in the Senate. Commercial assets, such as shares in the stock market, are taxed at 23.8% each year, and billionaires are taxed on their potential earnings.

Democrats expect the bill to be approved this week. Rapid approval of the spending plan is important for the White House, especially as Biden travels to Europe over the weekend.

The US president wants to improve his image with European leaders after widespread confusion over his withdrawal from Afghanistan, which has almost ignored his partners and his declining recognition with the American people

While this was initially welcomed, the tribute to the rich included difficult advances. As a result, the Democratic leadership faces opposition to the plan, even among party colleagues.

Apparently, Republicans are against the bill.

Proposal

First, the idea will only reach taxpayers or property owners with assets of more than $ 1 billion. Good luck $ 100 million for three consecutive years. By this rule, only 700 Americans will be subject to the new tax.

However, this plan is controversial because commercial assets such as stocks are checked annually and billionaires are taxed on their potential income.

Reaching a “small” group of people. The topic is much discussed. Because, if it is accepted, the new tax will change the notion of taxable income, which will be detrimental to higher taxpayers in the long run.