As America deals with an historic inflation crisis, the Biden administration is pushing for more spending and higher taxes.
The president currently wants Congress to pass new spending initiatives ahead of the next round of coronavirus booster shots that are coming out. On top of this, Biden’s also proposed a 20% minimum tax on billionaires and households worth at least $100 million.
There’s more to this proposed tax increase than meets the eye, though. Biden wants to tax not only the income of wealthy Americans, but also “unrealized gains” too.
In order for the president’s billionaire tax hike plan to go into law, it first has to pass through Congress. However, Biden is already missing support from one essential senator, as documented by Newsmax.
Sen. Joe Manchin: No Deal on Billionaire Tax Hike Plan
This week, Manchin made it clear that he’s not on board with Biden’s plan to tax anyone’s unearned income. In an evenly split Senate, the West Virginia Democrat is a vital vote that Biden can’t afford to lose.
However, as things currently stand, Biden’s bill, in its current form, isn’t going to get Manchin’s vote. The lawmaker declared that “earned income” is what the country is based on, not taxing gains that have yet to be realized.
Sen. Joe Manchin shoots down Biden's latest idea of 20 percent minimum tax on billionaires that would tax income & unrealized gains.
"You can't tax something that's not earned — earned income is what we're based on," he says. "Unrealized gains is not the way to do it."
— Alex Bolton (@alexanderbolton) March 29, 2022
The plan of taxing unrealized gains truly opens up a can of worms. It poses a very real question of what would happen if an individual were taxed for income that resulted in a gain during one year, only to incur a loss in the next year.
Currently, Biden’s tax hike plan is already being dragged through the mud by Republicans, as well. Therefore, with Manchin joining Republicans in opposing this legislation, it leaves 51 votes opposing and 49 votes in favor.
This is not enough for the president’s plan to pass Congress and arrive on his desk for a signarture.
Build Back Better 2.0?
The president’s new tax plan for billionaires is running into the same issues his Build Back Better Act faced in 2021.
Last year, Manchin joined Senate Republicans in opposing this bill and it didn’t get through Congress.
On this Vietnam War Veterans Day, please join me in honoring the service of this generation of Veterans by sharing the name of a friend or loved one who served our nation in Vietnam 🇺🇸 #VietnamWarVeteransDay pic.twitter.com/mThsEingGb
— Senator Joe Manchin (@Sen_JoeManchin) March 29, 2022
When it comes to Biden’s tax plan, it appears as though eliminating the unrealized gains tax is going to be, at the very least, a vital first step in having a chance of getting Manchin on board.
Already, progressives are trashing Manchin for not backing Biden’s new tax plan, just as they did when he opposed the Build Back Better Act. If history repeats itself, this new 20% minimum tax plan is on its way to the garbage bin.
What do you think about Joe Biden’s plan to tax 20% of billionaires’ income, in addition to “unrealized gains?” Do you think this bill is going to make it through Congress? Please let us know in the comments section.