Joe Biden to introduce ‘billionaire minimum income tax’ in 2023 fiscal budget

United States fiscal budget of 2023, which is expected to be released by the administration on Monday, will carry a proposal to enforce a “minimum tax” on billionaires, a White House document said. President Joe Biden is expected to propose the new tax.

A White House fact sheet released on Saturday said that nearly 700 billionaires living in the United States would be targeted through the “Billionaire Minimum Income Tax”. A minimum 20% tax rate would be set for households worth more than $100 million.

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“This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighter”, the White House document explained.

The deficit of the United States economy is also expected to be brought down with the new billionaire’s tax. Joe Biden’s administration expects to make a dent worth $360 billion in the next decade.

According to reports from CNBC, a “top up payment” would be due from billionaire taxpayers to reach the 20% mark, in case they are paying less. In a case where the individual is already paying 20% of their full income, no additional payments would be required. 

“As a result, this new minimum tax will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations,” the White House document released on Saturday stated.

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Even though the new measure would be welcomed by the Biden administration, its fate ultimately is in the hands of the United States Congress. A plan, largely similar to the upcoming proposal, was introduced by Democratic lawmakers in the Senate but was later struck down before reaching Biden’s desk for approval.

According to reports from CNBC citing the Congressional Budget Office, the 2021 federal deficit amounted to nearly $2.8 trillion, which is nearly $360 billion less than 2020.