Taxing The Richest! US President Joe Biden Proposes New ‘Minimum’ 20% Tax On Billionaires

Yesterday, US President Joe Biden proposed a new tax on America’s richest households while unveiling his government’s latest budget.

According to a factsheet released by the White House, the Biden administration wants to impose a 20% minimum tax on households worth more than $100m. The proposal would raise more than $360bn over the next decade and “would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters”.

The plan, called the “billionaire minimum income tax”, is the administration’s most aggressive move to date to tax the very wealthiest Americans, as per a report by TheGuardian.

The billionaire tax is part of Biden’s $5.8tn budget proposal for 2023, which also sets aside billions for the police and military, as well as investments in affordable housing, plans to tackle the US’s supply chain issues and gun violence.

AP photo

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US Prez’s Statement

In a statement, US Prez Biden said “Budgets are statements of values, and the budget I am releasing today sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America.”

The White House’s factsheet notes further stated “In 2021 alone, America’s more than 700 billionaires saw their wealth increase by $1tn, yet in a typical year, billionaires like these would pay just 8% of their total realized and unrealized income in taxes. A firefighter or teacher can pay double that tax rate.”?

Under the new proposed plan, households worth more than $100m would have to give detailed accounts to the Internal Revenue Service of how their assets had fared over the year. Those who pay less than 20% on those gains would then be subject to an additional tax that would take their rate up to the set minimum rate of 20%.

Moreover, the Biden administration has calculated that this tax would affect only the top 0.01% of American households, those worth over $100m, and that more than half the revenue would come from households worth more than $1bn.

Also Read: Indian?Govt Passes Finance Bill: Crypto To Start Attracting 30% Tax From April 1, TDS To Begin From July 1

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