By Emel Akan
WASHINGTON—President Joe Biden will announce a new minimum tax targeting billionaires as part of his 2023 fiscal year budget on Monday, according to the White House.
The Biden administration announced the proposal on Saturday in a fact sheet ahead of the budget release, stating that the president’s plan “rewards work, not wealth.”
“President Biden’s Billionaire Minimum Income Tax will make America’s tax code fairer and reduce the deficit by about $360 billion in just the next decade,” the fact sheet stated.
As part of his 2023 budget, Biden is asking Congress to pass legislation mandating the richest American families to pay a minimum of 20 percent on all of their income, including unrealized investment income.
Biden has long advocated for higher taxes on billionaires, but this is the first time the White House is proposing a plan that directly targets billionaires. So far, Biden’s attempts to tax billionaires have failed due to opposition from Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.).
The White House document said that many millionaires and billionaires pay lower tax rates than middle-class employees because of an “imbalanced tax code.”
“In 2021 alone, America’s more than 700 billionaires saw their wealth increase by $1 trillion, yet in a typical year, billionaires like these would pay just 8 percent of their total realized and unrealized income in taxes. A firefighter or teacher can pay double that tax rate.”
Only the wealthiest 0.01 percent of American households (those worth more than $100 million) will be subject to the tax. Households earning more than $1 billion will account for over half of the revenue, according to the White House.
If a wealthy family already pays 20 percent on their total income (standard taxable income and unrealized income), they will not be subject to any extra taxes under the plan. If a rich household’s tax-free unrealized income permits them to pay less than 20 percent on their whole income, they will need a top-up payment to reach the 20 percent requirement.
The plan permits affluent families to stretch initial top-up payments on unrealized income over nine years, and then over five years on future income. Payments spread across numerous years level out year-to-year fluctuation in investment income, according to the proposal. Taxpayers with no liquidity will be able to pay later with interest.
“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,” the White House said.
According to the document, Biden’s budget plan would reduce the federal deficit by more than $1 trillion over the next decade.
“President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire. He also believes that it is wrong for America to have a tax code that results in America’s wealthiest households paying a lower tax rate than working families,” the fact sheet said.
Affiliate News Feeds
- Washington Examiner
- The Federalist
- The Epoch Times
- The Guardian
- The Gateway Pundit
- Judicial Watch
By Zachary Stieber The U.S. Senate on Nov. 29 approved the “Respect for Marriage Act,” with a dozen Republicans crossing the aisle to vote yes. See below how each senator voted for the bill… [...]
The University of Florida College of Medicine has scrubbed its website of mentions of Black Lives Matter and other racialized content after a report highlighted the medical school's implementation of… [...]
Several Senate Republicans have reiterated their demand that the U.S. military drop its coronavirus vaccine mandate and urged Republican leadership to use the National Defense Authorization Act as leverage in… [...]
The Poynter Institute is recapturing control of the masses by streamlining and centralizing the fact-checking industry. [...]
Sen. Rand Paul (R-Ky.) and 19 other senators are threatening not to vote for new defense spending unless there’s also a vote to end the military’s COVID-19 vaccine mandate. “We’re… [...]
Exclusive: Evidence to UK Covid inquiry describes missed chances to improve test-and-trace regime in early days of pandemicPublic health leaders were slow to act on repeated warnings over Christmas 2020… [...]
Former lady-in-waiting to queen issues apology after Ngozi Fulani questioned over where her ‘people’ came fromThe late queen’s lady-in-waiting has resigned and apologised after a black guest at a reception… [...]
A new book about Queen Elizabeth II has revealed the Queen had a one-word response regarding Prince Andrew’s Epstein scandal. In early January, the Queen stripped Prince Andrew of all… [...]
The Biden economy is a mess and it’s getting worse. Now even the far-left media can’t hide the mess. Why would any union member vote for Joe Biden? Today’s job… [...]
(Washington, DC) – Judicial Watch announced today that it filed a Freedom of Information Act (FOIA) lawsuit against the U.S. Department of Homeland Security (DHS) for all records of communications… [...]
Though years ago India passed a sweeping law giving transgender people rights—and prohibiting discrimination in education, employment, and healthcare—the Biden administration is spending American taxpayer dollars to counter stigma and… [...]