White House to target billionaires with new minimum tax in 2023 budget
Biden's proposal calls for a 20% minimum tax rate on US households worth more than $100 million
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The White House will target billionaires with a new minimum tax when President Biden unveils his 2023 budget, according to a document from the administration obtained by Fox News.
Dubbed the "Billionaire Minimum Income Tax," the Biden administration proposal, as highlighted in the document, aims to "ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income, including unrealized appreciation."
President Joe Biden delivers a speech about the Russian war in Ukraine at the Royal Castle in Warsaw, Poland, on March 26, 2022. (Brendan Smialowski/AFP via / Getty Images)
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As part of the plan, a 20% minimum tax rate would be placed on U.S. households worth more than $100 million, with more than half the revenue coming from households worth more than $1 billion.
"This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters," the document stated.
In this Jan. 14, 2017, photo, tax forms sit on a desk at the start of the tax season rush, inside the offices of tax preparation firm Infinite Tax Solutions, in Boulder, Colorado. (AP Photo/Brennan Linsley / AP Newsroom)
Wealthy households who already pay 20% on their full income will not pay an additional tax under the proposal. However, the document noted that if a "tax-free unrealized income allows a wealthy household to pay less than 20 percent on their full income, they will owe a top-up payment to meet the 20 percent minimum."
The document also said the tax "will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations."
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Biden speaks to reporters on the South Lawn of the White House on Dec. 15, 2021. (Drew Angerer/Getty Images)
Additionally, the document claimed the minimum income tax will "make America’s tax code fairer and reduce the deficit by about $360 billion in just the next decade."
"In effect, the Billionaire Minimum Income Tax payments are a prepayment of tax obligations these households will owe when they later realize their gains," the document said. "This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else, and eliminates the inefficient sheltering of income for decades or generations."
Biden's 2023 budget is expected to be released on Monday.