Democrats are looking towards targeting the 700 top billionaires in America as they get ready to push a new tax plan that would raise money on the backs of the most wealthy.
The Democrats want corporations and high income Americans to pay more in taxes to use that money for parts of their pricey spending bills, suggesting the money would go towards helpful things that may help the lower and middle class. Paid family leave, social benefits, and subsidized day care are just some of the ideas floated by these bills whose goal appears to be shrinking inequality, according to a report on MSN.
However, there’s still a few Democrats in the way of the majority of the Dems – like Sen. Kyrsten Sinema who seems to be against higher taxes for rich folks. It’s unclear if these bills will ever get passed without the full backing of all Democrats.
There’s also experts who warn that making taxes for such a small group of people might lead to them finding ways around the taxes, such as loopholes or deductions, etc.
Another issue is that some of the wealthy people who own assets don’t usually have to pay taxes on certain assets until they’re sold. That means they can borrow money against the non-taxed assets where they can then spend more money and make more money while making it seem like they’re making less money, therefore lowering their tax bracket anyway.
Experts will have to figure out how the “Billionaire Income Tax” proposal will actually work while finding ways to prevent it from being avoided, or making it friendly enough that billionaires would rather pay the tax than find the way around it.
For example, if their tax rate goes up just a tiny amount, then it may not be worth their trouble to find ways around it. If the tax rate goes up too much, then rest assured that the more savvy billionaires will find a way around it.
Some of the richest Americans pay little to no federal income taxes, according to this news report video: