Biden’s Plan For A 20% Minimum Tax On The Ultra-Wealthy Is Fair And Makes Sense - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Washington Wire
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Washington Wire RSS Get our newsletter
Order Prints
April 19, 2022 Washington Wire
Share
Share
Post
Email

Biden’s Plan For A 20% Minimum Tax On The Ultra-Wealthy Is Fair And Makes Sense

Hawaii Tribune-Herald
Commentary

The ultra-wealthy in America have all sorts of tricks at their disposal to avoid paying their fair share of taxes, which is

why it's not uncommon for a billionaire to end up with a lower-percentage effective tax rate than an average working American.

President Joe Biden's proposal to set a 20% minimum tax rate on the wealthiest households would end that inequity and help pay down the nation's budget deficit.

Biden's plan, part of the budget he announced last month, is far less sweeping than various progressive proposals for taxing the wealthy, some of which would be based not just on income but on accumulated wealth itself. Biden's approach wouldn't do that, though it would mean a major change in the way income is defined for the wealthiest Americans.

Most of the mega-wealthy keep much of their wealth in stocks and other investments, of course.

Those assets are not

normally taxed as they increase in value year to year, but rather are taxed only when they are cashed out.

For someone with enough holdings, it's possible to borrow money against the value of those investments and then live off the borrowed money, rather than liquidating the investments and having to pay taxes on them.

This is at base a tax-avoidance strategy, since borrowed money isn't taxed. Federal economists estimate that between 2010 and 2018, 400 billionaire families paid an average effective federal tax rate of a little over 8%, which is far less than millions of working Americans pay.

Biden's plan would begin with the premise that households worth $100 million or more must pay at least 20% in taxes on their income.

And income for those families would be redefined to include gains in the value of investments that have not yet been liquidated.

In that sense, it's less a tax hike than a requirement for tax pre-payment, since those taxpayers in theory would ultimately owe these taxes on growth anyway when they cash out the investment.

Any tax payments those families have to make on those investments under Biden's plan would be counted toward whatever they ultimately owe when they do liquidate the investments.

But this would end situations where families simply leave their investments in place for years or decades, refraining from liquidating them and

just living off loans and other assets.

As a White House summary document of the proposed

minimum tax puts it, "This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else."

Polls have long shown that Americans believe by wide margins that the mega-wealthy should be paying more than they do in taxes, as a matter of basic fairness.

Biden's proposal would accomplish that with far less pain to those lucky few than many competing plans out there.- St. Louis Post-Dispatch

Older

Biden Uses Tax Day To Draw Contrasts With GOP

Newer

Mississippi River Cities Anxious For Federal Dollars To Address Flooding

Advisor News

  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
  • Younger workers more likely to be eligible for a retirement plan after changing jobs
More Advisor News

Annuity News

  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
  • Why job boards are failing insurance agencies
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
  • What’s fueling record annuity growth?
  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
More Annuity News

Health/Employee Benefits News

  • How health insurers get a free pass to deny coverage from a 52‑year‑old law meant to protect worker pensions
  • Reports from Capital One AG Describe Recent Advances in Managed Care (Factors Affecting Medical Appointment Adherence among Adolescents and Young Adults with Kidney Disease: A Longitudinal Cohort Study): Managed Care
  • Studies from University of Alabama Further Understanding of Neurology (Understanding stroke caregiving in rural contexts: a qualitative study of family caregivers’ cultural values, coping behaviors, and technology use): Health and Medicine – Neurology
  • New state law will create more transparency of dental insurance benefits
  • Rob Sand pledges to reverse Iowa Medicaid privatization
More Health/Employee Benefits News

Life Insurance News

  • NAIFA praises House committee approval of Clarity for Compensation Act
  • PHL Variable liquidation pushed out to 2027, Connecticut regulators say
  • ‘Recession-Proof’ Insurance Is Trending. Safety Net or Scam?
  • Winged Keel Group Expands National Presence and PPLI Leadership, Welcomes SBSI, Inc. (dba NFP Insurance Solutions)
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet