×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Skip to main content
Tags: billionaires | joe biden | joe manchin | taxes

Sen. Manchin Casts Doubt on President Biden's 'Billionaire' Tax Plan

Sen. Manchin Casts Doubt on President Biden's 'Billionaire' Tax Plan
Sen. Joe Manchin, D-W.Va. (Zach Gibson/Getty Images)

By    |   Tuesday, 29 March 2022 08:37 PM

Sen. Joe Manchin, D-W.Va., declined to support President Joe Biden's new plan of imposing a 20% minimum tax on billionaires Tuesday, according to The Hill.

The centrist senator questioned the legality of Biden's unprecedented proposal — which was unveiled to Congress on Monday — despite the selling point of potentially raising $360 billion in deficit-reducing revenue.

"You can't tax something that's not earned — earned income is what we're based on," Manchin said. "There's other ways to do it. ... Everybody has to pay their fair share, that's for sure. But unrealized gains is not the way to do it, as far as I'm concerned."

With Manchin opposing Biden's plan, as currently constituted, Senate Democrats would likely have difficulty garnering a majority vote for the proposal.

The "Billionaire Minimum Income Tax" program also has a misleading moniker, since the new tax rate would apply to U.S. households worth more than $100 million. The rationale of the proposal: More than half the revenue would come from people or households with a wealth value exceeding $1 billion.

The new proposal reasons: "The minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters."

Senate Finance Committee Chairman Ron Wyden, D-Ore., who announced his own plan for taxing the unrealized gains of billionaires last October, supports the Biden proposal, The Hill reports.

"Here's what [rich people] do," Wyden explained. "They go to their accountant. They tell their accountant, 'Make sure I don't make any income, any salary.' And then they say, 'Make sure I can buy, borrow and die.' And nobody knew anything about that years ago, and now people are pretty up on it."

Wyden's analogy aside, it could be tough to generate concrete support for any bill that taxes general wealth, or even hints of double taxation.

"The problem with that particular tax is that it's a tax on unrealized gains," says Senate Minority Whip John Thune, R-S.D.,, a member of the Senate Finance Committee.

Thune added: "It's essentially taxing people before they actually get the income, and that seems like a really dangerous precedent in tax law. Because if you have a gain one year and then a huge loss the next year, how's the government going to pay people back for their losses?"

Related Stories:

© 2022 Newsmax. All rights reserved.


Politics
Sen. Joe Manchin, D-W.Va., declined to support President Joe Biden's new plan of imposing a 20% minimum tax on billionaires Tuesday, according to The Hill.
billionaires, joe biden, joe manchin, taxes
405
2022-37-29
Tuesday, 29 March 2022 08:37 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved