Billionaire Income tax

[mtdjed]

Today's Daily Sun Associated Press Article on Billionaire Income Tax states that it raises $360 Billion dollars that can be used to lower costs for families and cut the deficit. This is big news, but it is hard to put in perspective. I have tried below but am sure I have made some gross errors of miss placing or badly playing math usage. Assuming that the FY 2022 budget and Deficit are correct, what would you come up with for the benefit of the Billionaires Income tax change? Try to put it into a cost benefit per person and or percent reduction to deficit. Also any recommendations of how to invest my federal government cost rebate would be appreciated.

So, the US FY 2022 Budget is $6.011 Trillion with a forecasted Deficit $1.837 Trillion.

For perspective let's look at what 6 trillion looks like $6,000,000,000,000.

Now look at what the Billionaire Tax will bring $360,000,000,000 but that is for 10 years.
available to
For 1 year the Billionaire Tax will bring $36,000,000,000 (Which is .6 % of total Budget). Note that article says current rate is 8% for Billionaires and new rate is 20%, so it would seem that the increase is $22,000,000,000 per year or .36% of total Budget.

So, the Billionaire tax to lower costs for families is $22,000,000,000.

Now we have 330,000,000 us citizens divided into $22 Billion +~$67 per person savings or $22 Billion to reduce the $1.837 Trillion Budget deficit for FY 2022.

So, the new deficit could be $1,837,000,000,000 minus $22,000,000,000 or $1,815,000,000,000.

So, which is it going to be . Will my wife and I get relief of $134 or will we we reduce the deficit.

[Mrprez]

The US govt spends a billion dollars every 2.5 hours. 36 billion is a drop in the bucket. Hardly a blip.

[dewilson58]

So, which is it going to be . Will my wife and I get relief of $134 or will we we reduce the deficit.

Neither.

[Babubhat]

IRS has little ammo to enforce. Already overwhelmed and tax professionals will find the loopholes. A big yawn

[njbchbum]

To begin with - how does the tax code change and who changes it and approves the change? What is the plan for increasing billionaire taxes? How is the current tax code going to change? Do billionaires have billions of annual income $$ or are they "paid" in stock options, capital gains, etc? Will the govt be changing the tax code on those types of "income"? Or will Congress be passing the wealth tax?

[Babubhat]

To begin with - how does the tax code change and who changes it and approves the change? What is the plan for increasing billionaire taxes? How is the current tax code going to change? Do billionaires have billions of annual income $$ or are they "paid" in stock options, capital gains, etc? Will the govt be changing the tax code on those types of "income"? Or will Congress be passing the wealth tax?

Congress passes laws with little regard to how its enforced. The IRS come up with guidelines which will be challenged for years. The billionaires will die of old age before it’s resolved. Defer until you die,

In case you haven’t noticed, the IRS is lacking huge amounts of talent. Don’t fear them

[Stu from NYC]

It is criminal how they lie to us about wanting to reduce this deficit.

[Keefelane66]

It is criminal how they lie to us about wanting to reduce this deficit.
And Trickledown economy theory doesn’t work.

[dewilson58]

In case you haven’t noticed, the IRS is lacking huge amounts of talent. Don’t fear them

That's why some people deduct their bond payments.

[Stu from NYC]

And Trickledown economy theory doesn’t work.

That I will disagree with.

People with lots of money do not hide it under their mattress they buy stuff (creating jobs) and make investments also creating jobs.

Do think they should pay some minimum income tax but doing this does not really do much at all to reduce or eliminate our huge deficits.

[Pinball wizard]

One of the biggest problems with the bill (IMHO) is taxing unrealized gains. Quote taken from NYTIMES

"...billionaires would face a tax on the unrealized gains in the value of their liquid assets, such as stocks, bonds and cash..."

How long do you think it would take to push this down to you and me. Imagine having a nice gain in your retirement portfolio and having to sell some to pay the "unrealized gains tax".

[Stu from NYC]

One of the biggest problems with the bill (IMHO) is taxing unrealized gains. Quote taken from NYTIMES

"...billionaires would face a tax on the unrealized gains in the value of their liquid assets, such as stocks, bonds and cash..."

How long do you think it would take to push this down to you and me. Imagine having a nice gain in your retirement portfolio and having to sell some to pay the "unrealized gains tax".

Agreed. How can they tax paper profits as income? When the stock market goes down they going to accept tax losses? Of course not.

[Babubhat]

They call it a prepaid tax. Ridiculous. Implementation will be a nightmare and compliance low. Only the little people pay taxes in a billionaire world

[guitarguy]

Isn’t a tax on unrealized gains really taxing assets? Does anyone consider unrealized gains, regardless how much one earns, real income?

[davem4616]

a drop in the bucket the way the national debt is rising...the situation is totally out of control

[retiredguy123]

I'm sure glad that I am not a billionaire.

[retiredguy123]

So, half of the people pay zero income tax, but they get to tell the other half to pay more tax and to spend even more money that will increase the debt.

What a system!

[mtdjed]

And would these comments say that the Billionaire Income Tax proposal "is much ado about Nothing"? Could my math be correct? No cost savings for me as promised. No debt reduction of any significance?

Could the Associated Press and the Daily Sun be wrong? Will the Congress spend hours arguing about this issue instead of solving the debt issue. Why can't the media put things into perspective that makes sense to all of us.

The truth is that if there was a $36,000,000,000 yearly windfall Income Tax gain by picking on 700 billionaires it would simply be absorbed in the rounding.

Another perspective - the FY 2022 budget has a deficit of ~$1.8 trillion ($1,800,000,000,000). Divided by 330 million citizens that would equal about $5,500 deficient spending for each man woman and child. So instead of my wife and I not getting $134 cost savings, our government is planning to spend about $11,000 dollars more than they have for the two of us. This while they say that their expenditures pay for themselves and no added taxes for those making less than $400,000/year. We should demand plain speak from the government and especially from the media. As soon as expenditure exceeds revenue in the budget, the plan is suspect.

[Babubhat]

Isn’t a tax on unrealized gains really taxing assets? Does anyone consider unrealized gains, regardless how much one earns, real income?

The wizards want tax revenue now to spend. They hate step up basis rules which are seen as a tax dodge. Warren and the usual suspects that know zero about taxation. They will all expire before a penny is collected. The first rule of taxation is don’t pay, don’t pay, don’t pay. Tie them up until they settle.

[TNLAKEPANDA]

It’s a ploy by the Democrats and if it ever passed it would become a “trickle down” tax. If only Congress could pass a Fair Tax plan where everyone pays a Fair % tax on income that would work. There are way too many deductions and loopholes in the crazy tax law.

[Babubhat]

Deductions and loopholes are how campaign donations raised and re-election works. Why things won’t change

[OrangeBlossomBaby]

It is criminal how they lie to us about wanting to reduce this deficit.

I don't know who "they" are, that you refer to. But SOMEONE reduced the deficit from last year to this year. I might not know who did it, but I definitely know who did -not- do it.

[Stu from NYC]

I don't know who "they" are, that you refer to. But SOMEONE reduced the deficit from last year to this year. I might not know who did it, but I definitely know who did -not- do it.

They is Congress and you think a 1.7 trillion dollar deficit is a step in the right direction?

[Robbb]

Is anyone concerned about the 30 trillion dollar debt we are handing over to our kids? Our parents were know as the greatest generation, we will be know as the worst generation.