RICH AMERICANS MAD AT BIDENS TAXES
May 10, 2021 - Douglas Myser
Rich Americans mad at bidens taxes. With the political winds shifting, after years of allowing corporations and the wealthy pay lower tax rates than average Americans, the Biden Administration is on the verge of trying to change that, to finance long suffering social and infrastructure programs, that are hampering the competiveness of the American economy. As other nations surge ahead faster, and the United States slowly falls further behind in multiple categories that gauge productivity, and GDP, its apparent to most economist that with low interest rates, the time to act boldly on the economy is now. With Republican opposition, the question is how much can be accomplished. Rich Americans mad at bidens taxes.
Pressure has been building to raise levies on the wealthy after decades of tax cuts that have benefitted the rich or top 1% of earners. Politicians at the national and state levels have recently proposed or passed higher taxes, but the measures were largely focused on income taxes. The plan to target investment gains strikes at the heart of what makes the wealthiest Americans even more wealthy. The country's richest 1 % now own more than 50% of the equity in corporations and in mutual fund shares, according to Federal Reserve Data. The next 9 % of the wealthiest own more than a third of equity positions. Added together, the top 10 % of Americans hold more than 88% of all assets.
Meanwhile, the bottom 90%s equity exposure has been dropping for almost two decades. That meant last year's stock market surge widened the nations wealth gap further, leaving the 10 richest Americans with more than $1 trillion additional wealth, according to Bloomberg data. Now, Biden wants to help pay for a raft of social spending that addresses long standing inequality by taxing investment income gains, according to people familiar with the proposal. Billionaire venture capitalist Tim Draper isn't convinced. According to these folks, trickle down works. But just tell the majority of Americans that, who own no assets, stock, and are living paycheck to paycheck.