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Billionaire’s Income Tax: Democrats Devise Taxation Plan for Billionaires, Corporate Giants

Senate Democrats proposed two bills to tax billionaires and corporate giants in the U.S. to help fund social policy and climate change plans.

As the social spending package of Democrats near its completion, the Senate Democrats are discussing taxing billionaires after the resistance against income and corporate tax hikes. Senator Elizabeth Warren, Senate Finance Committee Chairman Ron Wyden, and Senator Angus King proposed the plan as part of a two-pronged legislative strategy to rein in corporate and wealthy tax dodging.

The proposed bill ensures that billionaires and companies with over $1 billion in annual profit pay at least a 15 percent corporate tax rate. The tax will not be based on their Internal Revenue Service but on their shareholders’ profits. According to Wyden, the proposition has assembled the notion that corporations should pay their fair share of taxes and that affluent companies should never pay zero tax.

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Democratic Senator Joe Manchin supports the idea of a billionaire tax after opposing the Build Back Better Act’s major provisions (Photo: Stefani Reynold/The New York Times)

Oppositions Of The Proposed Bill

The White House expressed support for the proposal, stating that President Joe Biden will include it in his “Build Back Better” bill. Additionally, the three politicians expected strong support from the Senate Democratic caucus’s 50 members. However, the proposal, specifically the unconventional billionaire’s tax, may face backlash from House Democrats, who prefer a more straightforward increase in corporate and wealthy individual tax rates to fund Biden’s plan.

Senators Kyrsten Sinema and Joe Manchin were the only Democrats who opposed the Build Back Better Act’s major provisions. They hold enormous influence, as Senate passage requires the support of every single Democratic Senator. However, Sen. Joe Manchin appeared to favor the idea of a billionaire tax. On the other hand, Sen. Sinema hasn’t publicly voiced her opinion on the proposed bill.

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