Richest Americans Add $195 Billion To Net Worth During Biden's First 100 Days

Under his “American Families Plan” announced Wednesday, the top rate of personal income tax would increase to 39.6% for the highest 1% of earners from the current 37%, while the capital gains rate would be raised to the same level for those earning above $1 million, wiping out the discrepancy between income and capital gains tax rates that has benefitted many of the ultra-rich.

The wealthiest 1% currently pay 40% of all federal income taxes, according to Internal Revenue Service data, an amount that doesn’t include payroll taxes. -Bloomberg

"When you ask the American people what they want, they want corporations and millionaires and billionaires to pay higher taxes," according to Erica Payne, founder of the Patriotic Millionaires, a group of progressive high-net-worth individuals. "It is politically a winner, it is economically the right thing to do and it is morally a no-brainer."

Meanwhile, the Biden administration has also floated a proposal which would raise corporate taxes to fund infrastructure spending - a move which Amazon founder Jeff Bezos, the richest (known) person in the world - supported.

"We look forward to Congress and the administration coming together to find the right, balanced solution that maintains or enhances U.S. competitiveness," said Bezos.

Conservatives, meanwhile, say the money grab is likely to backfire.

"Government investments are often sold to the public with the promise that they will improve lives and improve the economy," said Tax Foundation president, Scott Hodge, in Congressional testimony this week. "In every case, the economic harm caused by the taxes would swamp any of the benefits from the new spending, leaving taxpayers and the economy worse off."

Congressional Democrats are also gunning for tax loopholes in order to claw back gains made by America's wealthy during the pandemic, with Sen. Elizabeth Warren (D-MA) proposing an Ultra Millionaire tax - which would hit those with fortunes above $50 million with a 2% annual tax on their wealth, and 3% for those with more than $1 billion.

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