President Joe Biden has unveiled plans to create a minimum 20 per cent tax rate on the incomes of households worth more than $100m. The tax is expected to apply to unrealised income made on investments, taxing shares if they rise in value even before they are sold. Experts fear this could lead to an exodus of money from the US economy.

IEA Director of Communications Annabel Denham was quoted in The Telegraph saying: “This anti-liberal, anti-capitalist measure may incentivise individuals whose wealth is in their own companies’ stock to divest and spread their investment portfolio – but such a move would bring a range of unintended consequences.”

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