The Biden administration plans to announce a "Billionaire Minimum Income Tax" on Monday as part of its 2023 budget proposal, The Washington Post reports, citing five people with knowledge of the matter and an administration document obtained by the newspaper.
Fox News appears to have obtained the same document, and reports that the new tax would apply to all U.S. households with a net worth of more than $100 million.
The Post explains that many billionaires "pay far lower tax rates than average Americans because the federal government does not tax the increase in the value of their stock holdings until those assets are sold" and that billionaires can then "borrow against their accumulated gains without triggering taxes on capital gains."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The document says that, under the proposed policy, the ultra-wealthy will be taxed 20 percent of their "full income," including "unrealized income." If a household pays an amount equivalent to or higher than 20 percent of full income in already-existing taxes, no additional taxes will be levied. If the household's tax bill falls short of that number, "they will owe a top-up payment to meet the 20 percent minimum," per the document.
Married couples filing jointly for the 2022 tax year will be taxed 37 percent of any income over $647,850, according to Forbes.
The document predicts the new tax will raise $360 billion in revenue over the next 10 years.
-
Trump officials reinstating 2 Confederate monumentsSpeed Read The administration has plans to 'restore Confederate names and symbols' discarded in the wake of George Floyd's 2020 murder
-
Trump nominates Powell critic for vacant Fed seatspeed read Stephen Miran, the chair of Trump's Council of Economic Advisers and a fellow critic of Fed chair Jerome Powell, has been nominated to fill a seat on the Federal Reserve Board of Governors
-
ICE scraps age limits amid hiring pushSpeed Read Anyone 18 or older can now apply to be an ICE agent
-
Trump's global tariffs take effect, with new additionsSpeed Read Tariffs on more than 90 US trading partners went into effect, escalating the global trade war
-
House committee subpoenas Epstein filesSpeed Read The House Oversight Committee has issued a subpoena to the Justice Department for its Jeffrey Epstein files with an Aug. 19 deadline
-
India rejects Trump threat over Russian oilSpeed Read The president said he would raise tariffs on India for buying and selling Russian oil
-
NY's Hochul vows response to Texas gerrymanderSpeed Read Gov. Kathy Hochul has promised to play ball with redistricting that favors the Democrats
-
Texas Democrats exit state to block redistricting voteSpeed Read More than 51 legislators fled the state in protest of the GOP's plan to redraw congressional districts
