Biden Proposes a 20 Percent ‘Billionaire Minimum Income Tax’

President Joe Biden is proposing a minimum tax on the wealthiest Americans’ incomes and unrealized gains.

Biden unveiled his $5.8 trillion budget for the fiscal year 2023 on Monday, which includes increased defense spending and funds for domestic law enforcement programs.

It also includes a new tax on the wealthiest Americans and an increase in the corporate tax rate.

The new tax would apply to Americans worth at least $100 million and would require them to pay 20% of their income.

The New York Times notes the tax would also apply to their “unrealized gains in the value of their liquid assets, such as stocks and bonds, which can accumulate value for years but are taxed only when they are sold.”

“The ‘Billionaire Minimum Income Tax’ would apply only to the top one-hundredth of 1 percent of American households, and over half of the revenue would come from those worth more than $1 billion,” the Times added.

Those who fall into that category and are paying 20% or more would not see an increase.

Additionally, the Times notes, “The payments of Mr. Biden’s minimum tax would also count toward the tax that billionaires would eventually need to pay on unrealized income from assets that are taxed only when they are sold for a profit.”

A White House fact-sheet argues that the current tax code “offers special treatment for the types of income that wealthy people enjoy.”

Additionally, it stated that “over half the revenue would come from billionaires alone” and that the tax “would ensure that, in any given year, they pay at least 20 percent of their total income in Federal income taxes.”