U.S. President Joe Biden will propose a minimum tax plan on millionaires as part of the 2023 fiscal budget expected to be announced Monday, according to a document released by the White House.
The plan called ‘Billionaire Minimum Income Tax’ will set a minimum tax rate of 20% on households earning more than $ 100 million and is expected to target more than 700 millionaires in the country.
Households that fall within those criteria are required to pay a minimum tax of 20% on all their income including unrealized investment income that is currently not taxable.
According to the document again, the tax could help reduce the budget deficit of around $ 360 billion in the next decade.
However, for households that have already paid 20% of their full income, there is no need to pay additional taxes under the plan.
If paying less than 20%, they will owe a ‘top -up fee’ to meet the new minimum.
For the record, Senate Democrats have previously proposed a tax on millionaires to help pay for Biden’s master plan known as ‘Build Back Better’.
However, no progress was made on the spending package as it did not get sufficient support from the Senate.
