London Daily

Focus on the big picture.
Saturday, Apr 11, 2026

Can the super-rich solve America's budget problem?

Can the super-rich solve America's budget problem?

A nonagenarian, a father of seven and a high-profile divorcee are among the Americans who would face a new minimum tax under a proposal in US President Joe Biden's budget plan.

The proposal aims to capture more of the wealth created by the soaring stock market of the last few years.

It targets the roughly 20,000 taxpayers in the US worth more than $100m (£76m).

Investor Warren Buffett, Tesla boss Elon Musk and Amazon founder Jeff Bezos would be among those affected.

Under the proposal, America's 0.01% richest would face a minimum 20% tax on income. Crucially, it changes rules on calculating income to include gains from stocks, even if they were not sold by the investor being taxed.

"This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else, and eliminates the inefficient sheltering of income for decades or generations," the White House said.

The idea is the latest in a long list of efforts to raise taxes on the super-rich and faces long odds in Washington - not to mention opposition among the class it proposes to target.

There are about 20,600 people worth more than $100m in the US, according to estimates by the Boston Consulting Group.

The White House said more than half the $360bn raised from the measure over 10 years would come from the country's roughly 700 billionaires.

"Eventually they run out of other people's money and then they come for you," Tesla boss and world's richest man Elon Musk wrote on Twitter last year about a similar proposal.

Under Mr Biden's proposal, Mr Musk - a father of seven who boasts a net worth of more than $280bn - would have to pay $50bn more in taxes over 10 years than under the current system, according to analysis by Gabriel Zucman, an economist at the University of California-Berkeley.

Amazon founder Jeff Bezos would face an extra $35bn bill, while Warren Buffett would be on the hook for $26bn.

"This is big," Prof Zucman, who has studied billionaire wealth and helped design a wealth tax proposal for left-wing Senator Elizabeth Warren, wrote on Twitter.

Mr Biden's budget also calls for raising the income tax rate on households earning over $400,000 from 37% to 39.6% and increasing the tax on companies to 28%, partially reversing cuts made under the Trump administration.

He would also make other reforms to the system for taxing the gains in value from stocks and property, which would apply beyond the richest Americans.

Together the reforms and others in the budget would help reduce the deficit by $1tn over the next decade, according to the White House.

For the 2022 financial year, the annual deficit is projected at more than $1.2tn. Overall debt passed $30tn last month.

Mr Biden has long called for many of the tax changes in this year's budget to little avail.

In Congress, other proposals to raise taxes on the wealthy have met with little success.

Fellow Democrat Joe Manchin, of West Virginia - one of the key of members of Mr Biden's party who has blocked his wider agenda - last year said that a similar proposal from Senator Ron Wyden was too complicated and he didn't "like the connotation that we're targeting different people".

Other Democrats have expressed concerns about other similar proposals' workability and ability to withstand legal challenge.

In a briefing for reporters on Monday, Treasury officials said the goal was to advance the discussions in Washington about how to ensure the rich paid their fair share.

America's 400 richest families have more wealth than all 10 million of the country's black families combined, according to a 2020 analysis by the Brookings Institution, a Washington think tank.

Newsletter

Related Articles

0:00
0:00
Close
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Australia’s most decorated living soldier was arrested at Sydney Airport and charged with five counts of war-crime murder for the killing of unarmed Afghan civilians
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
×