STATEMENT: Roosevelt Institute Responds to Billionaire Minimum Income Tax Proposal in Biden Administration FY 2023 Budget
New York, NY—Later today, when the Biden administration announces its FY 2023 budget, it will include a minimum tax on billionaires’ income and a significant rewrite of stock buyback practices—calling for a three-year freeze on executives selling their shares after a share repurchase, and a buyback excise tax. Together, these new measures could help rein in corporate America’s addiction to extractive short-termism, diminish the growing racial wealth gap, and ensure that the wealthiest Americans pay their fair share.
In response to this news, Roosevelt Institute experts had the following comments:
“The proposed Billionaire Minimum Income Tax is a strong step in the right direction toward curbing corporate power and increasing public power. While this isn’t a wealth tax, it is a wealthy people’s income tax, and that is a good thing for our economy. The fact that this tax is part of the FY 2023 budget is an excellent sign that the administration is prioritizing forward-looking investments in workers, businesses, and our economy as a whole,” said Felicia Wong, president and CEO of the Roosevelt Institute.
“Only three months into 2022 and stock buybacks are at near-record highs. This manipulative corporate practice not only increases the racial wealth gap and buoys exorbitant CEO pay, but it prevents corporate profits from being retained and reinvested in workers, in innovation, and in building the economy of the future. President Biden’s attempt to curb self-dealing by corporate executives and to ensure corporations are investing in the American people will be critical building blocks to steer the economy toward prioritizing what really matters: preventing climate chaos, fixing broken supply chains, and treating everyone with respect,” said Niko Lusiani, director, corporate power at the Roosevelt Institute.
Now is the time to enact new rules that guide how American corporations function—and who they serve. You can learn more about how Roosevelt’s corporate power program is working to reclaim power for workers and the public here.