The White House will target billionaires with a new minimum tax when President Biden unveils his 2023 budget, according to a government document seen by Fox News.
The Biden administration‘s proposal, dubbed the “Billionaire Minimum Income Tax,” as the document points out, aims to “ensure that the very wealthy Americans pay a tax rate of at least 20 percent on their full income, inclusive realized increase in value”.
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As part of the plan, a minimum tax rate of 20% would be imposed on US households valued more than $100 million, with more than half of the income coming from households valued more than $1 billion.
“This minimum tax would ensure that the wealthiest Americans would no longer pay a lower tax rate than teachers and firefighters,” the document said.
Wealthy households already paying 20% of their full income will not pay any additional tax under the proposal. However, the document states that if “tax-free unrealized income allows a wealthy household to pay less than 20 percent of their full income, they owe a top-up payment to meet the 20 percent minimum.”
The document also said the tax will “eliminate the possibility that the unrealized income of very wealthy households will go untaxed for decades or generations.”
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In addition, the document claimed that the minimum income tax would “make America’s tax laws fairer and reduce the deficit by about $360 billion over the next decade alone.”
“In effect, the billionaire minimum income tax payments are a prepayment of tax obligations that these households will owe when they later realize their gains,” the document said. “This approach means that the very wealthy Americans pay taxes as everyone else as they go and eliminates inefficient income protection for decades or generations.”
Biden’s 2023 budget is expected to be released on Monday.