January 1, New Tax Proposal Targets the Wealthy

President Joe Biden announced that his 2023 budget proposal includes a new minimum tax targeting the wealthy.

The “Billionaire Minimum Income Tax” would implement a 20% minimum tax on all households worth more than $100 million — roughly 0.01% of the U.S.

“President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire,” the White House said in a statement.

“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 new tax would require applicable households to pay at least 20% of their full income, or the combination of wages and unrealized gains. Under current law, gains are only taxed when (and if) the owner sells the asset.

“As a result, this new minimum tax will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations,” the White House said in the budget proposal.

If enacted, the White House says, the tax would reduce the deficit by roughly $360 billion over the next 10 years.

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Biden proposes new minimum tax on billionaires, unrealized gains