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Protest sign for a tax on the rich (archive picture): "Tax me if you can!"
Photo: JONATHAN ERNST / REUTERS
With a new tax for the super-rich, the US Democrats want to finance their plans for massive investments in social programs and climate protection.
The Democratic Senator Ron Wyden presented the main features of such a tax, with which "hundreds of billions of dollars" could be raised.
He said it would affect around 700 taxpayers who, for three consecutive years, have owned more than $ 1 billion or an annual salary of more than $ 100 million.
"The billionaire income tax would ensure that the richest people in the country pay their fair share of historic investments in childcare, paid time off and dealing with the climate crisis," said the chairman of the Senate Finance Committee.
The central element of the plans is the taxation of unrealized gains as wealth grows.
Super-rich like Tesla founder Elon Musk and Amazon founder Jeff Bezos have not yet paid any taxes on the increase in the value of their shares because the profits are only incurred when the shares are sold and taxes are only due then.
Senator Wyden said the super-rich would avoid paying taxes by holding onto their stocks.
Meanwhile, they could borrow money at low interest rates with their stocks as collateral and use it to finance their lifestyle.
"Working Americans like nurses and firefighters pay taxes on every paycheck, while billionaires postpone paying taxes for decades or even indefinitely," said President Joe Biden's fellow party member.
According to the plans, billionaires are to pay the capital gains tax of 23.8 percent on the annual price gains on their share packages or other securities.
A new tax should also apply to the sale of real estate, for example.
Biden's Democrats are currently wrestling with two huge investment packages: an infrastructure package worth $ 1.2 trillion (around one trillion euros) and a package for comprehensive social reforms and climate protection, which has now been worth $ 3.5 trillion.
The Democratic Senators Joe Manchin and Kyrsten Sinema reject this second package as too expensive - and without their votes, the plans cannot pass the Senate.
The Democrats are therefore feverishly struggling to find a compromise.
The White House is hoping to reach an agreement before Biden flies to Italy on Thursday.
The president will meet Pope Francis and French President Emmanuel Macron in Rome on Friday before attending the G20 summit on Saturday and Sunday.
From there, Biden will travel to the world climate summit in Glasgow, Scotland.
Domestic political success with his investment packages would also be important for Biden on the international stage.
mic / AFP
