In his State of the Union address last Tuesday, Joe Biden argued that “ the tax system [américain] Is not fair “. This is why he proposed to quadruple taxes » relating to share buybacks. The goal is to ” encourage long-term investments “. Except that the idea of a tax on the rich is not without complications.
A reform based on the minimum tax for billionaires
Giving America back its pride and prosperity is the promise made by Joe Biden in his speech last Tuesday. The 46e President of the United States, who recently called for public awareness of the risks associated with cryptocurrencies, wants a really big tax rate for the ultra-rich.
” I watch POTUS’ State of the Union, he’s still going after billionaires “.
” Democrats denigrate billionaires like Republicans condemn immigrants and the poor. The former say that the problem is the wealthiest; the opposing party says that they are the poorest. It’s akin to the basic way people identify with parties “, warns Quickshoe Racing, a fan of EV and cryptocurrencies.
According to FinancialTimes, Joe Biden intends to defeat inflation by pumping even more into the wallets of the rich. And also in the coffers of large companies.
Deficit reduction should go “ through additional reforms to ensure the wealthy and big business pay their fair share “.
In his eyes, the minimum effective tax rate of 20% proposed last year is far from sufficient. This is why he recommends quadrupling the tax on share buybacks.
Tax unrealized gains?
President Biden also spoke of an imposition on “ unrealized gains “.
Once in effect, this reform will mean that households with more than $100 million, as well as the founders of technology companies like Charles Hoskinson or Elon Musk, will have to pay a lot more capital gains before their assets are sold.
CNBC gave this as an illustration. A very wealthy person with shares valued at $1 billion and who see them valued at $1.5 billion over the course of a year will have to pay a tax of $100 million. This sum is calculated on the theoretical capital gain of 500 million dollars.
However, the rich often face difficult situations. If they don’t have highly volatile assets like SBF, they lack liquidity to pay their tax.
This tax on American billionaires seems unworkable in the eyes of Republicans. Is blockchain-friendly President Joe Biden wooing American voters for a second term?
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!