Biden’s Newest Financial Plan: Taxation of The Wealthy

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Lillian Eschweiler

Recently, President Joe Biden has released his newest financial plan, and what is being dubbed as the “Billionaire Tax,” is currently making its works through Congress.  

  When Biden was initially reforming Trump’s financial plan, he proposed a raise of taxation on corporations, and rates on wealthy Americans, however, due to Senator Joe Manchin of West Virginia and Senator Kirsten Sinema of Arizona, he did not get the house majority vote to pass this plan. 

  The “Billionaire Tax” is additional taxation that would apply to people who own $1 Billion in assets or have made at least $100 million in their income for 3 years straight. Biden expects it to be a $2 trillion (about $6,200 per person in the US) plan that would cover social programs like healthcare, childcare, and climate change. House Speaker Nancy Pelosi told CNN that Biden’s plan was more likely to raise around $200 to $250 billion (about $770 per person in the US), even still making it a huge investment in U.S. social programs.  

  The issue with this, “Billionaire Tax,” does not necessarily come to funding, A lot of it does pertain to the optics of it. If a corporation is being taxed then, the American population typically does not care, but when it comes to taxation of the richest Americans, even those who are not in the .0005% bracket of wealthiest Americans, tend to feel a certain way about it. Because it then feels like it is targeting individuals. 

  In any case, whether one could argue the funding of this new plan, it seems that this has been a long time coming, and by that, I mean, the taxation of the wealthy. It is apparent that the wealthiest families in America certainly have not been paying enough and even less than the average working-class families. According to an article put out by CNBC News: 

“Although U.S. levies increase with income, the ultra-wealthy often finesse the tax code to reduce how much they owe. And some billionaires, such as Amazon founder Jeff Bezos and Tesla CEO Elon Musk, pay little to no taxes compared with their wealth.” 

  Last week, Elon Musk made $36 Billion in one day. It seems ridiculous to suggest that he should be taxed the same or even less than a median household that makes only $67K a year.  

  To quote the Economist Ha-Joon Chang: “Once you realize that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are, a simple upward redistribution of income, rather than a way to make all of us richer, as we were told.”