Democrats Tell Billionaires: Pay More To Fund Spending Bill

US Democrats will unveil a tax plan on Monday that would raise hundreds of billions of dollars from 700 billionaires to help pay for expanding the social safety net and tackling climate change, Jarrett Renshaw reported for Reuters.

Photo Insert: Meanwhile, billionaires like Jeff Bezos have been engaged in a space race.

Democrats were forced to shift to the unorthodox plan as one of their own senators, Kyrsten Sinema, opposes raising the corporate tax rate and the top personal income tax rate to pay for the spending plan, a pillar of Democratic President Joe Biden's agenda.

The party is putting together the final details of the plan, which is likely to come in at between $1.5 trillion and $2 trillion.

The progressive wing of the party had wanted a much bigger plan, but opposition from Sinema and fellow Senator Joe Manchin required the White House to make concessions and cut the overall cost.

Democrats have argued for higher income and corporate tax rates for years, saying wealthy Americans and companies should pay more to fund new social benefits, but their struggle to enact such measures underscores the challenges the party faces.

Currently, rich Americans do not have to pay taxes on their accumulations of wealth, such as real estate, stocks, and artwork, because they are taxed only when an asset is sold.

Under the “Billionaire Income Tax” proposal, the federal government would require billionaires to pay taxes on the increased value of assets such as stocks on an annual basis, regardless of whether they sell those assets or not.

They could also take deductions for any annual loss in value of those assets. The plan has the backing of the White House.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic