On Monday, the Biden administration is set to lay out a new maximum tax on billionaires for its 2023 budget proposal, according to multiple media outlet reports on Saturday evening.
The White House is terming the proposal the “Billionaire Minimum Income Tax,” and it calls for a 20 percent minimum tax rate on any American household worth more than $100 million.
The majority of the revenue would come from billionaires, and the tax would only be applicable to the top 0.01 percent of American households, which is only the 700 people residing in America who are billionaires.
“The Billionaire Minimum Income Tax will ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income,” outlined a White House document obtained by The Washington Post. “This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters,” the document continued.
According to the Biden administration, the tax would bring in around $360 billion in revenue over the next ten years, and the White House added that the budget proposal would cut the projected federal deficit by $1 trillion in the next decade.
President Biden is set to release the proposal on Monday, but the idea is expected to face pushback from Republicans, who generally oppose the kind of wealth taxes the Biden administration is aiming to impose.
GOP members often argue that increasing taxes on the wealthy will negatively impact investment and jobs and will encourage billionaires to take their money overseas.
ARTICLE: ELIZABETH HERTZBERG
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: BUSINESS INSIDER