The White House is set to unveil a new minimum tax targeting the billionaires as the Biden administration prepares to unveil its 2023 budget on Monday.
The Washington Post reported that, according to five people with intimate knowledge of the matter, the Biden administration’s new initiative will raise the minimum tax rates on the wealthiest class of Americans. The initiative, referred to as the “Billionaire Minimum Income Tax” plan, intends to establish a 20 percent minimum tax rate on all American households worth $100 million or more.
The new tax will apply to less than one percent of American households and more than half of the revenue that is expected to be generated by it is expected to come from the pockets of billionaires, the Associated Press reported.
President Joe Biden has long been an advocate for raising taxes on wealthy Americans, but his administration has dragged its feet when it came to introducing a tax plan specifically targeting billionaires.
The Washington Post said, “The plan comes amid signs that the administration’s negotiations with Sen. Joe Manchin III (D-W.Va.) over stalled White House economic proposal may be reviving.”
Manchin and his colleague, the self-styled maverick Democratic Senator from Arizona, Krysten Sinema, have routinely foiled the Biden administration’s legislative agenda when it comes to implementing far-reaching leftist policies such as the “Build Back Better” plan.
The “Billionaire Minimum Income Tax,” if put into effect, would mandate that those it affects pay at least 20 percent of their full income or “the combination of traditional forms of wage income and whatever they have made in unrealized gains, such as higher stock prices.”
“Billionaires paying a rate below [20 percent] will have to pay the difference between what they pay now and the 20 percent rate,” the Washington Post affirmed. “Billionaires already paying more than 20 percent would not owe additional taxes. The taxes paid toward the minimum tax would count toward whatever billionaires owe once they have to pay ordinary capital gains tax.”
An official White House document said, “The Billionaire Minimum Income Tax will ensure that the very wealthiest Americans pay a tax rate of at least 20 percent of their full income. This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.”
The Biden administration also claimed that this tax increase being included in the White House’s budget proposal will cut the federal deficit by more than $1 trillion over the next ten years.