Massachusetts Senator Elizabeth Warren lauds Pres. Biden for renewing the push for taxes on rich people worth $100 million or more to pay 20% as income tax. The Democratic Senator referred to the Biden administration’s latest proposal to introduce a new tax system that would change the way highly paid corporate executives to pay higher taxes.
Actually top Democratic lawmakers including Sen. Warren have introduced similar proposals before but have not received support before, in being recognized as an agenda; particularly when Kentucky Republican Senator Mitch McConnell was Senate Majority Leader. According to the Senator Warren, what they have been proposing all along is to raise taxes imposed on the country’s millionaires and billionaires, as they are not paying taxes based on the same rates imposed on everyone else.
Pres. Biden’s Renewed Call Supports Previous Democratic Tax Reform Proposals
When Senator Warren campaigned for nomination as the Democratic Party’s 2020 presidential candidate, she proposed an annual tax of two percent (2%) on millionnaires and billionnaires with net worth of at least $50 million and $1 billion, respectively; plus an additional annual four percent (4%) surtax on households with bet worth of over $1 billion.
Moreover, in line with President Biden’s renewed focus on wealthy company executives, the Masschusetts Senator reiterated her criticisms on how major corporations reward their CEOs and investors with stocks that came with buyback options. The compensation method comes with buyback option, which means a CEO or investor has the option to sell for a higher value and pay a lower Capital Gains Tax rate instead of paying higher tax based on the Income Tax Table.
President Biden’s proposal is for a legislation that will require corporate executives to hold ownership of company shares for a specific number of years before selling them as equity shares.