President Joe Biden is laying out a plan to tax the wealthiest American households in the 2023 federal budget.
According to a White House fact sheet, the Billionaire Minimum Income Tax Plan would implement a 20% tax rate on households with a worth of $100 million or more. Half of the revenue from the tax would come from individuals worth more than $1 billion, the document says.
"America's imbalanced tax code means that many millionaires and billionaires end up paying lower tax rates than middle class workers," the fact sheet explained. The proposed tax would have to get the approval of Congress and would cement the country's financial foundation by "building on the progress the Administration has made to reduce the deficit."
The task of getting it approved by Congress won't be easy, as Senators, including Democrat Joe Manchin have previously signaled concern about taxing the ultra wealthy. Sen. Kyrsten Sinema of Arizona opposed a plan to raise the tax rate on the highest incomes and increasing corporate tax rate during negotiations with the Biden Administration in the fall.
According to the White House's estimates, if the new tax passes, it would help reduce the deficit by $360 billion over the next ten years and decrease projected budget deficits by $1 trillion or more in the same time period.