US Democrats to Push 'Billionaire Income Tax' for Climate and Social Spending

The plan is currently estimated to cost between $1.5 trillion and $2 trillion.

The US Congress. 

(File Photo)

Democrats in the US Senate are likely to introduce a tax plan, called the "Billionaire Income Tax" later this week. Its objective would be to raise billions of dollars from around 700 American billionaires in order to finance an expansion of the US social safety net and to combat climate change, Reuters reported on Monday, 25 October.

Senators from the Democratic Party have faced opposition from one of their own – Kyrsten Sinema – while trying to push legislation that would increase the rates of corporate tax and the top personal income tax.

Both upgrades aim to pay for President Biden's climate and social spending.

The Democrats are attempting to push this legislation through before the commencement of the G20 meet on Saturday, scheduled to be held between 30–31 October.

According to current orientation of the plan, US citizens who have accumulated $1 billion of wealth or those who earn more than $100 million annually for three years in a row might have to bear an annual tax on asset growth like stocks and bonds, Reuters added.

The progressives of the Democratic Party had demanded much more than the amount which the social spending plan is currently estimated at, which is between $1.5 trillion and $2 trillion.

However, Sinema and another Senator named Joe Manchin, also from the Democratic Party, opposed any other provisions that may increase this amount any further.

Their votes are needed if the bill has any hopes of becoming a law.

As of now, it is unclear how much support the proposal has garnered within the Senate and the House of Representatives, CNBC reported.

(With inputs from Reuters and CNBC)