Billionaire Americans to pay more tax, Biden's proposal draws flak from many quarters

Joe Biden has been in the news for a proposal that could seriously cut down the American deficit by 50% in the next 10 years. The people who are expected to rescue the American people so the "American Dream" becomes a reality is none other than the billionaires who are aplenty in America. As per data in 2021 America has the highest number of billionaires in the world, 724 in number followed by China at a close 698. So these rich people would be asked to cough up the minimum tax of 20% in America from 2023 so that teachers and fire fighters don't pay a higher tax rate than the billionaires. If the household concerned is already paying 20% then they need not pay anything more, however, if they don't, then a top-up is expected. Once this proposal is passed then this would erase the heartburn that most Americans have been complaining about for decades. The rich will land up paying more than the poor from now on.

"Taxing the rich" has been tried in the past. The democrats tried it in 2021 and hoped that the "billionaire's tax" will bring the much required capital gains tax that the rich have been moping up for decades, without a single penny being given back to the treasury. But even though the proposal seemed robust, the Democrats who had the senate majority didn't succeed in implementing the idea.

Biden's proposal is to be tabled on Monday and is a part of the 2023 budget. What remains to be seen is whether the rich will have to part with more. Biden has hit the nerve of the Americans really well this time by cornering the rich. However Biden's proposal is to increase defense spending, and that is a grey area that Americans have been toying with for a long time.