President Joe Biden is expected to introduce a new tax on Monday as part of his budget for 2023, which will target the country’s wealthiest people.
“The ‘Billionaire Minimum Income Tax’ proposal under President Biden would set a minimum tax rate of 20% on all U.S. households with a net worth of over $100 million, according to The Washington Post. “Under the White House proposal, billionaires would be required to pay a tax rate of 20 percent at least on their entire income, or their combined wage earnings and unrealized gains, like stock prices that may have risen.”
Billionaires, according to the document, would be responsible for the difference between what they are paying now and the new rate of 20%, assuming they pay less than 20%. If they are paying more than 20, they will not be required to pay anything extra under this plan.
“The Billionaire Minimum Income Tax would ensure that the most wealthy Americans are taxed at a rate of 20 percent on their entire income,” according to a White House fact sheet. “This minimum tax rule would guarantee that the wealthiest individuals were no longer taxed at a lower rate than firefighters and teachers.”
The new plan, according to the analysis, claims that it will raise more than $350 billion in revenue over the next ten years if passed.
The NY Times reported:
“Senator Elizabeth Warren, a Democrat from Massachusetts and Chairman of the Senate Banking Committee, presented separate plans last year to tax the wealthiest individuals, albeit in different ways. In her unsuccessful campaign for president, Ms. Warren had advocated for a wealth tax.”
“Moderate Dems, including Sen. Kyrsten Sinema of Arizona, have opposed raising corporate tax rates or lowering the top marginal income rate from 37 percent to 39.6 percent, leaving the party with few alternatives for additional cash. Still, despite Mr. Wyden’s proposal to impose such a tax, Senator Joe Manchin from West Virginia slammed the notion of taxing billionaires, though he has since indicated that he could accept some sort of billionaire’s tax.”
“In the past, top Biden officials have showed pessimism about wealth taxes. Last year, Treasury Secretary Janet L. Yellen said a wealth tax was “something that was very hard to implement.” Natasha Sarin, the Treasury Dept.’s counselor for tax implementation and policy, was a co-author of an opinion essay released by The Washington Post in 2019 that says a wealth tax would create “a revenue estimation conundrum.”