Many Americans have long been begging government officials to tax the rich. Now, however, it seems our president plans to do just that. Ahead of sharing his 2023 budget plan, Joe Biden is expected to propose a new minimum tax on U.S. billionaires.
At a Glance:
- Biden’s new tax plan would incorporate a 20% minimum on U.S. households worth more than $100 million.
- The proposed levy could reduce the deficit by $360 billion over the next decade.
- Biden will share the budget plan for 2023 on Monday.
Billionaire Tax Plan to Potentially Lower Deficit
President Joe Biden plans to unveil his federal budget plan for 2023 on Monday. In sharing next year’s federal budget, the media expects the commander in chief to reveal a rather radical minimum tax for wealthy Americans. According to CNBC, Biden plans to level what he has officially called the “Billionaire Minimum Income Tax.” The increased rate will affect the wealthiest households and individuals across the U.S.
Overall, the plan affects households worth more than $100 million. Essentially, it would place a 20% minimum tax rate on those specified individuals. Further, the outlet reports that revenue received would serve to potentially reduce the national deficit. Experts believe the Billionaire Minimum Income Tax could account for about $360 billion over the next decade.
As of 2021, the national deficit totaled just under $2.8 trillion.
The document proclaims Biden’s billionaire tax plan “would make sure that the wealthiest Americans no longer pay a lower tax rate than teachers and firefighters.”
It further detailed that the “new minimum tax will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations.”
So How Does It Work?
Like all things, the new income tax minimum has certain stipulations. And, while most of us Outsiders remain unaffected by Biden’s billionaire tax plan, we have the plan laid out for you below.
Off the top, the plan would ensure all households worth more than $100 million would receive a 20% tax rate. Although, as per the outlet, those households already paying 20% of their full income won’t be required to pay any additional tax.
There are also different requirements for wealthy American households paying a portion of that sum already. Individuals under this category will be required to pay a “top-up payment,” intended to meet the 20% mark.
Biden’s Tax Plan faces Backlash On Both Sides of the Aisle
While an increased tax rate for the rich sounds pretty appealing, more than a few government officials have entirely rejected the proposal. Therefore, we’ll have to wait and see whether Congress actually moves forward with the plan.
CNBC reminds us that Senate Democrats had unveiled a billionaires’ tax minimum last year, though it was ultimately rejected.