This week President Biden released his Fiscal Year 2023 Budget Request, and unsurprisingly he has America’s top earners in his crosshairs, with the backing of some congressional Democrats.
On Monday, the White House published President Biden’s proposed “Budget of the U.S. Government, Fiscal Year 2023,” possibly hoping that its release would distract from the president’s disastrous week in Europe. However, as details emerge, it would appear that Biden’s priorities continue to shift away from the economic health of the American people and closer to an outright attack on capitalism. (RELATED: Biden Unveils $5.8 Trillion Budget – Here’s What’s in It)
One of the most concerning items on Biden’s agenda is a new “minimum tax” on America’s top earners. Under the so-called “Billionaire Minimum Income Tax,” households earning more than $100 million would be required to pay at least 20% tax on their income, a combination of wage income and unrealized capital gains tax. There will also be a requirement that if an individual fails to pay at least 20% tax, they will owe a “top-up” payment to reach that threshold.
Unrealized capital gains taxes have been widely criticized for decades as an unfair tax on investments that are typically not considered “income” until they are sold. Appearing on Fox Business’s “Mornings With Maria,” Americans for Tax Reform President Grover Norquist noted that an unrealized capital gains tax is nothing more than “taxing the value of assets you own, which go up and down with inflation or with value.”
While the president’s proposal will only target around 0.01% of Americans, many will see this as an attempt to get the ball rolling and soon levy the same ideas on a larger group of earners. When combined with other proposals in the budget, such as raising the corporate tax rate from 21% to 28% or closing certain tax advantages for domestic oil and gas production, the budget begins to look like a direct attack on businesses and workers. (RELATED: Times Change But Congress’ Budgetary Debates Don’t)
Despite the budget raising many eyebrows, President Biden appears to be all-in and ready for any fight these proposals may bring, tweeting, “My father had an expression: ‘Don’t tell me what you value. Show me your budget—and I’ll tell you what you value.’ The budget I’m releasing today sends a clear message that we value fiscal responsibility, safety and security, and the investments needed to build a better America.” Evidently, the administration feels that it is fiscally responsible to increase taxes and costs on Americans rather than granting them greater economic freedom.
Congressional Democrats have already started to back Biden’s budget. Congresswoman Ilhan Omar (D-Minn.) tweeted Monday, stating, “Billionaires got $5 trillion richer last year. Stop pretending we can’t afford to house our homeless, heal our planet, feed our children, or care for our sick.” In contrast, Republicans on Capitol Hill slammed the budget proposal with Rep. Jason Smith (R-Mo.), Ranking Member of the House Budget Committee, saying, “This budget submission from the President shows he has learned nothing over the past year — nothing about how his policies have failed the American people — and he intends to double down on those very policies.” To hammer home the point, Smith added, “This budget deliberately makes every crisis he created worse.”
As with many aspects of the Biden presidency, the survivability of his policy proposal remains largely in the hands of Congress, who ultimately send budget legislation to his desk. With only a slim majority in both chambers, Democrats will have a significant fight on their hands to ensure the survival of many of their far-left policies and budget earmarks. (RELATED: As Border Crisis Worsens, Biden Slashes Border Funds to Pay for Radical Climate Change Agenda)
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.