According to initial reports by Bloomberg and confirmed by Axios, the Biden administration is preparing to propose a range of tax hikes for both wealthy individuals and large corporations. These measures are set to be outlined in the upcoming budget request to Congress, which is scheduled for release on Thursday.
One of the key proposals is a minimum tax rate of 25% for the richest 0.01% of Americans, which aims to ensure that they pay their fair share of taxes. This move is expected to help close a loophole that allows some wealthy investors with "passthrough businesses" to avoid paying taxes on their investments.
In addition, the budget request will seek to increase the top tax rate for those earning over $400,000 a year from 37% to 39.6%. This would reverse a tax cut introduced by the Trump administration. The budget request also aims to raise income levies for corporations and billionaires, setting the corporate tax rate at 28%. Despite the increase, this rate would still be below the 35% rate that was in place prior to the 2017 tax law changes, according to a White House official.
Joe Biden writes on Twitter:
Look, I think you should be able to be a billionaire if you can earn it, but just pay your fair share. I think you ought to pay a minimum tax of 25%. It’s about basic fairness.
Elon Musk hit back:
I paid 53% taxes on my Tesla stock options (40% Federal & 13% state), so I must be lifting the average! I also paid more income tax than anyone ever in the history of Earth for 2021 and will do that again in 2022. @CommunityNotes, is the 3% number cited above accurate?
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