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Joe Biden suffers blow as US Senator denounces billionaire tax proposal | World | News

On Monday, President Biden revealed his new plan to Congress during his budget request that would greatly increase income by imposing a minimum 20 percent tax on billionaires. Following criticism from Democratic Senators, Senator Manchin could deal a fatal blow to Biden by allowing his plan to pass through Congress.

Senators have foiled President Biden’s previous schemes to fight climate change and raise social awareness in the fall.

Mr Manchin said he would not vote on a plan that would impose a minimum income tax on the richest Americans of more than $100 million.

The tax scheme would tax the unrealized gains of American billionaires, i.e. the value of their assets before they were sold, and the money physically converted into cash.

Speaking to The Hill, Manchin said: “You can’t tax something that isn’t earned. Earned income is our basis.

“There is another way to do it. Everyone must pay their fair share.”

He added: “Everyone has to pay their fair share, that’s for sure. But unrealized gain is not the way to go, as far as I’m concerned. ”

Senate Republican Whip John Thune, a member of the Finance Committee, said: “Basically people tax before they actually earn income, and that seems like a very dangerous precedent in tax law because if you have a year’s gain and then a huge loss of in the future, how will the government pay the people for their losses?”

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He said: “This is what they do. They go to their accountants. They tell their accountants, ‘Make sure I don’t get any income, any salary.’ And then they say, ‘Make sure I can buy, borrow, and die.’ And nobody knew anything about it years ago, and now people quite understand it. ”

Wyden backed President Biden’s proposal, calling it “solid” and saying the tax plan would ensure America’s richest people pay the same percentage as those in the middle class in terms of their wealth.