Billionaire Income tax
 

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.

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

Neither.

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

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

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

And Trickledown economy theory doesn’t work.

That's why some people deduct their bond payments.

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.

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.

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

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

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