WASHINGTON — The Biden administration is set to propose a new minimum tax target for the wealthiest American families in its fiscal year 2023 budget, according to a White House fact sheet.
The billionaire’s minimum income tax plan, expected to be released on Monday, will impose a 20 percent minimum tax rate on American households worth more than $100 million. According to the document, more than half of the revenue will come from those worth at least $1 billion.
“Unbalanced US tax law means that many millionaires and billionaires end up paying lower tax rates than middle-class workers,” the document said, and the proposal, which must be approved by Congress, would put the US government on a firmer financial footing. Build on the progress the administration has made to reduce the deficit.”
The White House estimates that, if enacted, the tax would reduce the deficit by about $360 billion over the next decade. With other measures, Biden’s budget proposal would reduce the projected budget deficit by more than $1 trillion over that period, according to another White House fact sheet.
The news of the reduction was first reported by Associated Press.
Last year, Senate Finance Committee Chairman Ron Wyden unveiled a proposal that would impose stricter tax rules on the 700 richest Americans. The so-called billionaire income tax hasn’t made much progress, in part because Senator Joe Manchin, D.
The document said the president’s new budget would also propose “additional smart, targeted investments designed to stimulate lasting economic growth, create jobs, reduce cost pressures, and boost shared prosperity – while further offsetting their cost.”
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