{"id":3154,"date":"2022-03-30T17:20:14","date_gmt":"2022-03-30T17:20:14","guid":{"rendered":"https:\/\/linksus.net\/manchin-shoots-down-bidens-new-billionaire-tax-plan-thehill-the-hill\/"},"modified":"2022-03-30T17:20:14","modified_gmt":"2022-03-30T17:20:14","slug":"manchin-shoots-down-bidens-new-billionaire-tax-plan-thehill-the-hill","status":"publish","type":"post","link":"https:\/\/linksus2.linksus.net\/index.php\/2022\/03\/30\/manchin-shoots-down-bidens-new-billionaire-tax-plan-thehill-the-hill\/","title":{"rendered":"Manchin shoots down Biden's new billionaire tax plan | TheHill – The Hill"},"content":{"rendered":"

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Centrist Sen. Joe Manchin<\/a>\"\"Joe Manchin<\/a>Energy & Environment \u2014 Oil companies rebuff House chairman<\/a> Manchin shoots down Biden’s new billionaire tax plan\u00a0<\/a> US using Ukraine as cover to lock us into fossil fuels for years to come<\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span> (D-W.Va.) on Tuesday shot down President Biden<\/a>\"\"Joe Biden<\/a>Trump says he’s uninterested in being Speaker if GOP retakes House<\/a> Biden administration boosts support for antitrust efforts <\/a> Energy & Environment \u2014 Oil companies rebuff House chairman<\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span>\u2019s new plan to raise $360 billion in revenue by imposing a 20 percent minimum tax on billionaires, a proposal the president formally unveiled Monday in his budget request to Congress.
Manchin says he doesn\u2019t support the president\u2019s plan to tax the unrealized gains of billionaires, which would set a new precedent by taxing the value an asset accrues in theory before it is actually sold and converted into cash.
\u201cYou can\u2019t tax something that\u2019s not earned. Earned income is what we\u2019re based on,\u201d he told The Hill. \u201cThere\u2019s other ways to do it. Everybody has to pay their fair share.\u201d
\u201cEverybody has to pay their fair share, that\u2019s for sure. But unrealized gains is not the way to do it, as far as I\u2019m concerned,\u201d he added.
Manchin\u2019s opposition means Biden\u2019s proposal is likely dead only a day after the White House unveiled it.
It could be significantly restructured to avoid taxing unrealized gains, which would pose the big challenge of trying to make up the lost revenues.
The problem with taxing just the regular income of billionaires is that many of the nation\u2019s richest individuals, such as Jeff Bezos<\/a>\"\"Jeffrey (Jeff) Preston Bezos<\/a>Manchin shoots down Biden’s new billionaire tax plan\u00a0<\/a> The Hill’s 12:30 Report: Trump’s missing Jan. 6 call logs raise questions<\/a> Biden’s plan to ‘tax the rich’ unlikely to stop with billionaires<\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span> and Elon Musk<\/a>\"\"Elon Reeve Musk<\/a>Manchin shoots down Biden’s new billionaire tax plan\u00a0<\/a> The Hill’s 12:30 Report: Trump’s missing Jan. 6 call logs raise questions<\/a> The Hill’s Morning Report – Biden touts record US military budget, swipes anew at Putin<\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span>, have been able to pay little or nothing in income tax by not declaring income.
Instead, the ultra-rich often can take out loans secured by the value of their assets to finance their lavish lifestyles.
\u201cHere\u2019s what they do. They go to their accountant. They tell their accountant, \u2018Make sure I don\u2019t make any income, any salary.\u2019 And then they say, \u2018Make sure I can buy, borrow and die.\u2019 And nobody knew anything about that years ago, and now people are pretty up on it,\u201d said Senate Finance Committee Chairman Ron Wyden<\/a>\"\"Ronald (Ron) Lee Wyden<\/a>Manchin shoots down Biden’s new billionaire tax plan\u00a0<\/a> Biden moves to campaign mode with billionaire tax plan<\/a> This week: House set to vote on marijuana legalization bill<\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span> (D-Ore.), who has announced his own proposal to tax the unrealized gains of billionaires.
Wyden says that imposing a minimum 20 percent tax on billionaires is about making sure they pay a similar percentage of their wealth in taxes as middle-class Americans.
He called Biden\u2019s proposal \u201csolid.\u201d
Structuring a tax on unrealized capital gains is complicated because the value of assets can fluctuate.
\u201cThe problem with that particular tax is that it\u2019s a tax on unrealized gains,\u201d said Senate Republican Whip John Thune<\/a>\"\"John Randolph Thune<\/a>Manchin shoots down Biden’s new billionaire tax plan\u00a0<\/a> Schumer says Thomas should recuse himself<\/a> No. 2 GOP senator to oppose Supreme Court nominee <\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span> (S.D.), a member of the Finance Committee.
\u201cIt\u2019s 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\u2019s the government going to pay people back for their losses?\u201d he said.
\u201cWe\u2019ve always had a principle in our tax policy that a gain has to be actually realized, income has to be received before it can be taxed, and this completely undermines that principle,\u201d he added. \u201cIt\u2019s a wealth tax basically, but I think it\u2019s a dangerous precedent.\u201d
Wyden said his proposal would account for individuals and families\u00a0who see the values of their assets decline after they pay tax on unrealized gains.
\u201cWhat we\u2019ve always said is that losses would be considered as well. We\u2019ve talked about it. The president has talked about it,\u201d he said.
The White House budget office in a press release Monday explained that the tax would apply only to the wealthiest 0.01 percent of households, those with more than $100 million in assets. Half the estimated revenue it would produce would come from billionaires.
\u201cIt would ensure that, in any given year, they pay at least 20 percent of their total income in Federal income taxes,\u201d the Office of Management and Budget said.
Tax and financial planning experts warn that Biden\u2019s proposal would be very difficult to implement and would result in a huge tax hit on the very rich.
Mallon FitzPatrick, a managing director at Robertson Stephens, a boutique wealth management firm, said the proposal would make it tougher to pass on legacy wealth.
\u201cA lot of this proposal is aiming at people who are just slowly growing assets and not paying any tax because they\u2019re not realizing any gain and are expecting to pass on wealth to their heirs or whomever without paying taxes on it,\u201d he said. \u201cThe mega, mega wealthy rely on that.
\u201cThat\u2019s why I think it\u2019s unpopular,\u201d he said.
But he added it\u2019s \u201chard to enforce.\u201d
\u201cYou\u2019re asking for the first time that I know of for people to report net worth,\u201d he said. \u201cThey\u2019re going to self-report or have a professional report how wealthy they are.
\u201cIt\u2019s just [very] complex as I read it,\u201d he remarked. \u201cIt\u2019s not fully fleshed out.\u201d
Under Biden\u2019s plan, taxpayers with more than $100 million in wealth would be required to report to the IRS on an annual basis the total estimated value of their assets in specified classes as well as their liabilities.
More liquid assets such as stock would be valued by using year-end market prices to determine unrealized capital gains.
The increase in value of nontradeable assets such as businesses and real estate would be determined by what the Treasury Department is calling a \u201cconservative floating annual return\u201d calculated by the five-year Treasury rate plus\u00a02 percentage points.
Taxpayers would be able to pay off the big initial tax hit in nine annual installments.
FitzPatrick called the proposal a \u201cderivative\u201d of Sen. Elizabeth Warren<\/a>\"\"Elizabeth Warren<\/a>Manchin shoots down Biden’s new billionaire tax plan\u00a0<\/a> Biden’s plan to ‘tax the rich’ unlikely to stop with billionaires<\/a> Energy & Environment \u2014 Biden seeks nearly billion funding boost for EPA<\/a> MORE<\/span><\/a><\/span><\/span><\/span><\/span>\u2019s (D-Mass.) proposal to implement a 2 percent annual tax on the net worth of households and trusts between $50 million and $1 billion and a 1 percent annual surtax \u2014 or 3 percent overall \u2014 on the net worth of households and trusts above $1 billion.
He said the proposal potentially could tax the unrealized gains of assets going back years or decades.
Warren on Tuesday praised the president\u2019s proposal as something that would address some of the constitutional concerns raised about her own plan, which has been criticized by some Republicans as an unconstitutional seizure of wealth.
\u201cThe president wants to do it all. Invest in education, health care, housing and reduce the deficit and he\u2019s willing to ask billionaires to pay more in taxes to get that done,\u201d she said.
Speaking of the billionaires tax, she said, \u201cI would have gone further, but I like the direction the president is going in.\u201d
\u201cHe has quite elegantly sidestepped the constitutional issue that some people wanted to raise in connection with my proposal,\u201d she said. \u201cThe president has taken that issue off the table, and good for him.\u201d
Biden’s tax plan needs the support of every member of the Senate Democratic Conference to pass the upper chamber, as no Republican would vote for it.
Democrats are still hoping to pass some kind of tax reform under the budget reconciliation process to circumvent a GOP filibuster.\u00a0
View the discussion thread.<\/a>
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© 1998-2022 Nexstar Media Inc. All Rights Reserved Centrist Sen. Joe ManchinJoe ManchinEnergy & Environment \u2014 Oil companies rebuff House chairman Manchin shoots down Biden’s new billionaire tax plan\u00a0 US using Ukraine as cover to lock us into fossil fuels for years to come MORE (D-W.Va.) on Tuesday shot down President BidenJoe BidenTrump says he’s […]<\/p>\n","protected":false},"author":869,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"_links":{"self":[{"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/posts\/3154"}],"collection":[{"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/users\/869"}],"replies":[{"embeddable":true,"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/comments?post=3154"}],"version-history":[{"count":0,"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/posts\/3154\/revisions"}],"wp:attachment":[{"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/media?parent=3154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/categories?post=3154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/linksus2.linksus.net\/index.php\/wp-json\/wp\/v2\/tags?post=3154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}