Leftist tiktoker FAILS on Biden's Billionaire tax | President Joe Biden, Wealth Tax, Rick Scott

Tiktok. The site that keeps on giving. And twitter. The place where I bow my head in shame. Today we are responding to a left-wing tiktoker who is comparing both Biden’s and the quote on quote GOP tax plan. Let’s see if I can avoid an aneurysm unlike that last tiktok I debunked.
Problems with 0.01%: Ok, she only said one sentence but its already pretty misleading and I doubt she knows why. She is talking about a tax proposal from Biden’s 2023 budget that if passed will target households with a net worth of at least $100 million, slash the 0.01%. A 20% tax will be applied to the total income of this 0.01% per year. But what makes this kinda unprecedented is that unrealized capital gains will be taxed. At present, taxes are paid on capital gains when they are sold, but Biden’s proposal would tax these investors even if no profit was made. Forbes has a pretty good explanation for how this works. In their example, if a targeted household’s stock worth $500 rose to $900, they would have to pay a tax based on the difference of $400. This is pretty unfair as argued by both Republicans and Democrats since these investors will not receive any disposable cash to spend but still owe tax payments for money they don’t currently have access to. Proponents of the bill may argue that billionaires are taxed at 8.2% on average thanks to capital gains rates being lower than income taxes, but I would argue that we should lower income taxes at a similar level. Of course, illiquid holdings like business or real estate wouldn’t have to pay the full tax but owe an annual deferral charge. So Biden isn’t completely senile. Forbes also elaborates that as this is a minimum tax of 20%, wealthy households who paid their 20% won’t need to pay additional taxes, but if a wealthy household paid 15% in taxes, they would need to pay a further 5% to reach the 20% threshold.

Regardless of what you think of this policy, there is heavy opposition to the point that it will unlikely pass in congress according to some experts. Democrats have razor thin margins in congress due to scepticism of moderate lawmakers towards the minimum tax. To make matters even worse for Biden, the swing vote Democratic Senator Joe Manchin has called it a tough one and preferred alternatives to taxing wealthy people.

Sources:
Tiktok original video:
https://twitter.com/gunsetmelo/status/1516493928769462278
Bloomberg Deficit article:
https://www.bloomberg.com/news/articles/2022-03-29/biden-s-trillion-dollar-deficit-reduction-barely-dents-u-s-debt
Bloomberg Billionaire Tax article:
https://www.bloomberg.com/news/articles/2022-03-31/how-biden-s-billionaire-minimum-income-tax-would-hit-wealthy-americans-stocks
CNBC article:
https://www.cnbc.com/2022/03/31/why-bidens-billionaire-minimum-income-tax-may-be-a-tough-sell.html
Journal of Accountancy article:
https://www.journalofaccountancy.com/news/2022/mar/billionaire-minimum-tax-pose-difficulties.html
Business Insider article:
https://www.businessinsider.com/senator-rick-scott-federal-income-tax-gop-midterm-platform-2022-2?r=US&IR=T
Forbes article:
https://www.forbes.com/advisor/taxes/biden-billionaire-income-tax/
Daily Mail article:
https://www.dailymail.co.uk/news/article-10665289/Tax-experts-say-presidents-plan-target-rich-hit-middle-class-Americans.html
History of Income Tax:
https://www.history.com/this-day-in-history/war-revenue-act-passed-in-u-s#:~:text=Congress%20responded%20to%20this%20need,estates%20and%20excess%20business%20profits.
Hill article 1:
https://thehill.com/news/administration/3271832-white-house-targets-rick-scott-plan-on-tax-day/?rl=1
Hill article 2:
https://thehill.com/homenews/senate/596374-mcconnell-takes-aim-at-rick-scotts-plan/?rl=1