President Joe Biden will propose a new 20 percent minimum tax on billionaires as part of his fiscal year 2023 budget, according to a document released by the White House on Saturday.
The White House said that the “billionaire minimum income tax” Biden will propose would apply to the top 0.01 percent of American households, or those worth more than $100 million. More than half of the revenue raised by the proposed minimum tax would come from households worth more than $1 billion, according to the document.
“President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire,” reads the fact sheet describing the tax proposal. “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 Billionaire Minimum Income Tax will ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income,” the White House document says. “This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.”
The White House is expected to release the budget Monday, and it will include increases in defense and non-defense spending, with a focus on mental health, child care, and other social programs, two people familiar with the matter said.
Biden’s budget proposal will also cut the federal deficit by more than $1 trillion over the next decade. News of the deficit reduction was first reported by the Associated Press.