Can the super-rich solve America's budget problem?

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Can the super-rich solve America's budget problem?

Can the super-rich solve America's budget problem?

A nonagenarian, a father of seven and a high-profile divorcee are among the Americans who would face a new minimum tax under a proposal in US President Joe Biden's budget plan.

The proposal aims to capture more of the wealth created by the soaring stock market of the last few years.

It targets the roughly 20,000 taxpayers in the US worth more than $100m (£76m).

Investor Warren Buffett, Tesla boss Elon Musk and Amazon founder Jeff Bezos would be among those affected.

Under the proposal, America's 0.01% richest would face a minimum 20% tax on income. Crucially, it changes rules on calculating income to include gains from stocks, even if they were not sold by the investor being taxed.

"This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else, and eliminates the inefficient sheltering of income for decades or generations," the White House said.

The idea is the latest in a long list of efforts to raise taxes on the super-rich and faces long odds in Washington - not to mention opposition among the class it proposes to target.

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Source: BBC

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