June 24, 2021

Anna Murray 

Tax avoidance is easy for the wealthiest taxpayers. President of United States, Joe Biden, plans to increase tax rate of investment income. It is to benefit the need by targeting the richest Americans. Investment income could be capital gains and dividends. After combining the federal and states tax, the rich would have to pay the tax rate of 49%.

The final decision of President Biden’s proposal has not made yet. According to the figures from OECD, developed countries have various plans to levy investment income tax. Tax experts stated that the proposal of United States might charge only certain groups of taxpayers, especially the richest. Other developed countries target a broader pool of taxpayers. 

Mr. James Hine Jr., a professor at the University of Michigan, pointed out U.S. states have various calculations about investment income tax. Some richest residents in California and New York, will have to pay more than 49%, according to the tax foundation.

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