When Donald Trump was president, he was heavily criticized for how little he paid in taxes. Trump, and fellow highly wealthy public figures, claimed they were merely savvy in utilizing tax loopholes.
However, President Biden believes it is time for the rich to pay up.
Proponents of tax breaks for the rich believe it contributes to the theory of trickle-down economics. But critics point to our struggling economy as proof that theory does not translate to reality.
So instead the White House wants to significantly increase taxes on millionaires and billionaires. As reported by the Wall Street Journal, more details are being unveiled about Biden’s tax plan ambitions.
For those worried this could impact them, the odds are heavily against that. The proposed taxing is only for individuals making over $10 million per year—a group that comprises a mere 0.02% of taxpayers.
As for how much the taxes would be, for people above $10 million, they would have to pay an additional 5%, and then those making over $25 million would pay a further additional 3% beyond that.
The expected benefits of this proposal anticipate that it would generate $230 billion in revenue over the next decade. The White House wants to use that money to provide citizens with better healthcare options, more affordable education, and measures to limit climate change.
Highly wealthy public figures such as Jeff Bezos and Elon Musk have received substantial criticism in recent months for their individual pursuits to travel in outer space.
Many believe such behavior is emblematic of how the wealthy hoard their wealth and spend it on frivolous causes rather than anything that benefits the nation. News stories about these figures have reignited the rallying cry to “tax the rich”.
Hard details on Biden’s initiative were only introduced last week, so it still has a lot to go through before it could potentially be put into action. However, it appears the White House is in agreement that if wealthy individuals can afford trips to space, then they can afford to pay more to benefit ordinary citizens.
To read more about what the White House hopes to achieve with this tax plan, read the Wall Street Journal article by clicking here.
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