For the super rich, the crisis does not exist and the US President, Joe Biden, is ready to intervene to reverse course. According to the Global Luxury report published by Coldwell Banker, in partnership with the Institute for Luxury Home Marketing and WealthX and thanks to the support of Luxury Property Specialists, the world’s most affluent population those with net worth of $5 million and above in fact, it grew 19.8% in 2021, with 597,550 more wealthy people, bringing the total number of Scroogies to 3,612,730 worldwide. Their combined wealth rose 20.4% to over $75 trillion, a significant jump from 2020, which rose just 2.1% year over year.
Meanwhile, US wealth growth rates were even higher in 2021, rising 24.8% from 8.1% in 2020. This large growth in the wealth and population of wealthy individuals has led to an historic expansion in wealth Luxury real estate market. In fact, luxury singlefamily home sales increased by 14.5% in 2021, while prices increased by 20.3% compared to 2020. For this reason, US President Joe Biden has decided to reach into Scrooge’s pockets with a “minimun tax”, which he will present shortly.
Biden, here’s the “minimum tax” for Scrooge
As The Washington Post reports, in the budget he intends to present, Biden will include a minimum tax of 20% for families with wealth greater than $100 million, effectively affecting the 700 richer Americans. Confirmation of Biden’s plans, the Financial Times reported, came from within the White House itself, which indicated the tax would affect just 0.01 percent of US households. More than half of the revenue would come from people with assets over $1 billion. The Biden administration said that while America’s Scrooge fortunes were increasing, they only paid 8% in taxes, while a firefighter or teacher paid twice as much.
“President Biden is a capitalist and he believes everyone should be able to make a millionaire or a billionaire,” the White House said. “He also believes that if America has a tax system that causes America’s wealthiest families to pay a lower tax rate than working families, it’s wrong.” According to the White House, the minimum income tax for billionaires would be combined with other measures in the Presidential budget proposals reduce deficit by $1 trillion over a decade.
Biden fortune controversy
As the New York Times notes, the Biden administration has historically been skeptical about introducing a wealth tax. The finance minister Janet L Yellen He said last year that a wealth tax “is something that has very difficult implementation issues.” And Natasha Sarin, an adviser to the Treasury Department on fiscal policy and implementation, coauthored a 2019 opinion piece published by the Washington Post that was openly skeptical of that prospect. There are also great doubts about a property tax from a legal and constitutional point of view. The American Scrooge could actually resist and appeal. Steven M. Rosenthal, a researcher at the Tax Policy Center, notes that the White House proposal could raise several potential problems. With a wink on the left of the party, Joe Biden could therefore encounter fierce opposition not only from Republicans but also from centrists.