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The Biden Administration is poised to announce a new tax on the wealthy that could send Elon Musk into orbit.
Biden’s “Billionaire Minimum Income Tax” proposal would set a 20 percent tax rate floor on Americans worth more than $100 million — hitting not only their stated income, but also their unrealized gains on stock holdings and other forms of wealth.
The plan will be included in the budget proposal that the White House will roll out Monday, the Washington Post reported.
Musk attacked a version of the plan in October, when it was being considered as a way to help pay for Biden’s since-abandoned “Build Back Better” social spending bill.
“Eventually, they run out of other people’s money and then they come for you,” the multi-billionaire Tesla CEO and SpaceX founder posted on Twitter last year.
The proposal would cut projected federal deficits by more than $1 trillion over the next decade, according to a fact sheet released Saturday by the White House Budget Office.
Biden’s new tax could raise up to $360 billion over 10 years, say the aides who developed it, and would fall on the richest 700 Americans.
It would affect the top 0.01% of households, with more than half of the expected revenue coming from households worth $1 billion or more.
That would include Musk — as well as major Biden supporters like Amazon’s Jeff Bezos and Facebook’s Mark Zuckerberg.
In December, Musk said that the 2021 tax bill on his estimated $243 billion fortune totaled $11 billion.
But the levy, which would have to be passed by Congress, could face headwinds even in Biden’s own party.
Democrats such as House Speaker Nancy Pelosi and West Virginia Sen. Joe Manchin have expressed firm opposition to previous versions of the plan, calling it a publicity stunt unlikely to pass Congress.
The deficit dropped from $3.1 trillion in the 2020 fiscal year to $2.8 trillion in 2021. It’s projected to be down to $1.4 trillion this year. The economy expanded at 5.7 percent last year, buoyed by the easing of COVID shutdown measures.
But inflation has soared to a 40-year high, with supply chain issues and the Russian invasion of Ukraine contributing to ballooning gas prices.
Republicans have blamed the Biden administration for increased costs, with Senate Republican Minority Leader Mitch McConnell blasting the president for coronavirus relief and a push to move away from fossil fuel dependency.
“Washington Democrats’ response to these hardships has been as misguided as the war on American energy and runaway spending that helped create them,” the Kentucky lawmaker said last week. “The Biden administration seems to be willing to try anything but walking back their own disastrous economic policies.”
With Post wires