WASHINGTON, D.C. — The White House will unveil a new budget proposal Monday, which will include a new minimum income tax for billionaires.
The “Billionaire Minimum Income Tax” will impose a minimum tax of 20% on households worth more than $100 million.
The White House documents, released Saturday, state that the “minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.”
The White House estimates that the tax will reduce the deficit by $360 million over the next 10 years.
The overall FY2023 budget is expected to reduce the deficit by more than $10 trillion over the same time span.
The new billionaire tax is only expected to affect the “top one-hundredth of 1 percent of American households,” according to the New York Times.
Also in the proposal, lower deficits reflect the economy’s resurgence as the United States emerges from the pandemic, as well as likely tax law changes would raise more than enough revenue to offset additional investments planned by the Biden administration.
It’s a sign that the government’s balance sheet will improve after a historic burst of spending to combat the coronavirus.