U.S. President Joe Biden will propose a minimum tax on billionaires as part of the fiscal 2023 budget that is expected to be unveiled on Monday, a document released by the White House showed.
Biden’s “Billionaire Minimum Income Tax” would set a 20% minimum tax rate on households worth more than $100 million, in a plan that would mostly target the United States’ more than 700 billionaires, according to a White House fact sheet released on Saturday.
The plan would require such households to pay the minimum tax of 20% on all of their income including unrealized investment income that is now untaxed, the fact sheet said.
The tax will help reduce the budget deficit by about $360 billion in the next decade, the fact sheet added.
Senate Democrats last autumn had proposed a billionaires tax to help pay for Biden’s social and climate-change known as “Build Back Better” although the spending package did not move forward due to insufficient support in the Senate.
SOURCE: Reuters – Reporting by Chris Gallagher; Editing by Nick Zieminski and Aurora Ellis