WASHINGTON — The Biden administration is set to propose a new minimum tax targeting the wealthiest American households in its fiscal year 2023 budget, according to a White House fact sheet.
The Billionaire Minimum Income Tax plan, expected to be released Monday, would impose a 20 percent minimum tax rate on U.S. households worth more than $100 million. Over half the revenue would come from those worth at least $1 billion, according to the document.
“America’s imbalanced tax code means that many millionaires and billionaires end up paying lower tax rates than middle class workers," the document said. The proposal, which would have to be approved by Congress, would put the U.S. government on firmer financial footing, "building on the progress the Administration has made to reduce the deficit."
The White House estimates that if it is enacted, the tax would reduce the deficit by about $360 billion over the next decade. With other measures, Biden's budget proposal would reduce projected budget deficits by more than $1 trillion during that period, according to another White House fact sheet.
News of the reduction was first reported by The Associated Press.
Last year, Senate Finance Committee Chair Ron Wyden, D-Ore., unveiled a proposal that would impose tougher tax rules for the wealthiest 700 Americans. The so-called Billionaires Income Tax did not make much progress in part because Sen. Joe Manchin, D-W.Va., denounced it as divisive.
The president's new budget, the document said, would also propose "additional smart, targeted investments designed to spur durable economic growth, create jobs, reduce cost pressures, and foster shared prosperity — while more than fully offsetting their cost."
