Taxing the Rich: Biden’s Plan for Economic Equality

President Biden has unveiled a new tax proposal targeting wealthy individuals and unrealized capital gains in the U.S. The proposal aims to address income inequality and fund veterans and mental health services.

An Economic Warcry 

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“Tax the rich!” A cry many of us have heard before. It’s primarily a rallying call among the ranks of left-leaning political thinkers across the USA. But it seems President Biden has finally heard and is attempting to answer the call.

Biden’s Budget Proposal

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President Biden’s answer lies in the new 2024 budget proposal. It heralds a new tax targeting what the Democratic Party calls much-needed tax reform. 

Shifting Towards Equal

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This tax is all-encompassing, taking into account income, investments, and other unrealized capital gains of wealthy Americans.

The intention for proposing such a change is to neutralize the upper-crust Americans’ advantage over working-class families.

Deficit to Development

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An estimated $360 billion could be acquired in as little as ten years from Biden’s proposal. Proceeds will be directed towards diminishing the deficit, supporting veterans’ medical care, and developing public mental health services.

A Proposal for Presidency

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When asked about the motivation behind the plan, Biden said, “No billionaire should be paying a lower tax rate than a schoolteacher or a firefighter.”

Buying Votes With Tax Reform

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With elections fast approaching, many Americans are unsure who to vote for. By backing lower-income households, Biden invites endorsement from those who are on the political fence.

Most Americans Are Left Confused

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With the smokescreen of rhetoric and bureaucratic jargon, it can be difficult to determine what exactly this new tax proposal entails.

A Tax On Unrealized Gains

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This proposed tax deviates from standard income taxes as it carries over to unrealized gains. These gains fall into the categories of assets like stocks, bonds, and property, not solely taxable income.

This Bill Could Reshape History

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Historically, U.S. tax services have been influenced to allow loopholes for the more financially flexible; Biden’s proposals aim to neutralize this advantage.

Tying Up Loose Ends

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Biden’s budget offers a chance to close these tax loopholes, with a keen eye on carried interest and breaks from property gains.

What Does It All Mean

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This means that potential money earned from these categories would still be taxed, even if they remained unsold by the benefactor, i.e., the financial elite.

Of course, Biden’s proposal has its critics.

Opponents of the Proposal Are Concerned

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Those who oppose the plan have issues with exactly how it would work. Their top concerns are that it may discourage or inspire investors to move their practice internationally.

Former Speaker Speaks Out

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Kevin McCarthy, former Speaker of the House of Representatives, said, “President Biden’s unserious budget proposal includes trillions in new taxes that families will pay directly or through higher costs.”

Former Speaker Claims “Recklessness”

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McCarthy continues his statement, noting that a proposal like this could be considered “reckless.” Republican Party members hold a fear that this brash action could have unintentional consequences, preferring to play things safe.

A Democratic Demand 

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Those in favor, however, state that billionaires have seen an astronomical growth in wealth throughout the pandemic and should do more to aid their fellow countrymen through civic obligation. 

Calls for Support

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“At least he’s getting the Titanic pointing away from the iceberg,” claims Erica Payne, one of the founders of Patriotic Millionaires. Payne and her constituents believe that extraordinary wealth should not exist within U.S. borders.

More Than Just the Masses

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And Payne is not alone in her beliefs. Americans across an array of demographics have spoken out in support of Biden’s announcement. 

Tax Expert Weighs In

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“I think if we look in the context of what American presidents have accomplished in the last 30 years, it’s a really bold vision,” says Amy Hanauer, the Executive Director of the Institute of Taxation and Economic Policy.

From Grass-Roots to the White House Lawn

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While the richest U.S. citizens have enjoyed imbalanced taxation, federal initiatives like this signify a new method of weighing the scales. Grassroots concerns have now entered the legislative arena. 

What Hangs In the Balance

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It’s unclear whether or not the proposal will pass through Congress, regardless of scathing editing. Biden’s attempt to appease staunch young Democrats could be a political kryptonite or his saving grace, but the whole country will certainly be watching with hungry eyes.

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The post Taxing the Rich: Biden’s Plan for Economic Equality first appeared on Thrift My Life.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.