On October 27, the U.S. Senate proposed a “tax on billionaires.” The idea was proposed by Democrats in order to direct the proceeds to fund the social and economic agenda of U.S. President Joe Biden’s administration. The senators propose a 23.8 percent tax on assets. Stocks would also fall under the tax, whether they were sold or not.
About 700 taxpayers whose assets reach one billion dollars or whose annual income exceeds one hundred million dollars during the last three years will be subject to the tax. Billionaires’ stakes in companies registered as transitory entities and in trusts, including real estate investment trusts, will also be taxed. According to Reuters, millionaires and billionaires now do not have to pay capital gains tax unless they sell their assets.
Ron Wyden, head of the U.S. Senate Finance Committee, wants to equalize wealthy citizens with the average U.S. citizen who pays taxes annually. This tax could go into effect in early 2022, and the amount of the tax would have to be paid within five years.
Tesla CEO Elon Musk posted a comment on Twitter: «Eventually they run out of other people’s money, and they come for you».
Musk wanted to say that taking money from the wealthier segment of the population would not help solve the problem of the U.S. national debt, which already exceeds $28.9 trillion.
Former U.S. President Donald Trump was not left out of the news about the tax. Trump believes it will force wealthy Americans to leave the country.
“I wonder if I will be allowed to run for president again if I go to another country? However, I will probably wait here, but most others will not do this!”
