President Biden Wants To Make Sure The Richest Pay Taxes

Thanks to tax laws passed by Republicans while they controlled Congress, the rich pay a smaller percentage in taxes than the middle class does, and the super-rich pay almost nothing at all. President Biden is trying to fix that. He is proposing a tax for the super-rich (those having at least $100 million in wealth). 

Here is how CNN describes Biden's new tax proposal:

Looking for ways to fund its spending plans, the White House is turning to a familiar target: billionaires and other super-wealthy Americans.

As part of its budget proposal for fiscal year 2023, the Biden administration is pushing a measure that seeks to ensure that those worth more than $100 million pay a federal income tax rate of at least 20% on their income, including unrealized gains on assets -- which are not currently taxed.

Under the present tax code, growth in the value of assets is taxed only at the time of sale -- and at lower rates than the highest income tax rates for investments held for at least a year. The rich often borrow against their holdings to build more wealth and fund their lifestyles, while avoiding adding to their annual income tax tab. And many have seen their portfolios swell in recent years as the stock market has boomed.

"Under current law, when an American worker earns a dollar of wages, that dollar is taxed as they earn it," according to a White House fact sheet released Saturday, which notes that many wealthy people pay lower tax rates than middle-class workers. "But when a billionaire earns income because their investments increase in value, that gain is too often never taxed at all."

Titled the "Billionaire Minimum Income Tax," the proposal only applies to the top .01% of Americans, with more than half the revenue coming from households worth more than $1 billion. It is expected to raise $360 billion in the next decade.

The measure would allow the wealthy who are paying less than the 20% threshold to spread out the "top-up" levy on unrealized income over nine years. They would then have five years to make the top-up payments on new income going forward, which would also let them smooth out yearly variation in investment income.