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It’s Time for Billionaires To Pay Their Fair Share

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This piece was originally published in the April 4, 2022 edition of CAP Action’s newsletter, the Progress Report. Subscribe to the Progress Report here.

“You shouldn’t be able to avoid income taxes just because your wealth lives in a portfolio instead of in your house. We need a way to make sure billionaires pay at least a 20 percent income tax—that’s what the Billionaire Income Tax does.” – Rep. Ro Khanna (D-CA)

Over the course of this pandemic, American billionaires have gained $1.7 trillion, bringing their total net worth to $4.6 trillion

Despite this incredible wealth, billionaires pay on average an effective tax rate of 8.2 percent. That’s less than what many middle-class American workers such as teachers, nurses, and firefighters pay.

President Joe Biden has a plan to make this right. His proposal would ensure that the ultrarich pay their fair share in taxes—and it would establish a minimum tax rate of 20 percent on households worth more than $100 million. According to the White House, this tax would reduce the deficit by $360 billion over the next decade. It’s time for billionaires to pay their fair share.

Share this graphic to show your support for Biden’s billionaire tax:

On the right side of the image, is a rocket with a hundred dollar bill around it taking off from a pile of money; next to it is a picture of Elon Musk smiling with his mouth open. Text on screen reads: Why do we need Biden’s billionaire tax? Billionaire wealth is skyrocketing: U.S. billionaires gained $1.7 trillion in wealth since the pandemic began. They’re now worth $4.6 trillion. And they STILL pay less in federal taxes than most working Americans. Biden’s Billionaire Tax would establish a 20% minimum tax on households worth $100 million or more. Shouldn’t billionaires pay their fair share like the rest of us?

 

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What we’re reading

This piece was originally published in the April 4, 2022 edition of CAP Action’s newsletter, the Progress Report. Subscribe to the Progress Report here.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.

Authors

Brad Chester

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“The Progress Report” is CAP Action’s regular news email, providing policy-minded analysis of the day’s stories—and offering subscribers ways to get involved.

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