President Joe Biden’s administration will be proposing to raise the taxes on the wealthiest Americans in the upcoming 2023 budget proposal, which is scheduled to be submitted this upcoming Monday, March 27th, 2022.
The proposal, being called the ” Billionaire Minimum Income Tax,” aims to establish a minimum tax rate of 20% for annual incomes over $100 million dollars.
“The Billionaires’ Minimum Tax will ensure that the wealthiest Americans pay at least 20% tax on their entire income,”
“With this minimum tax, the wealthiest Americans will no longer be subject to a lower tax rate than teachers or firefighters,” the U.S. government continued. The new tax bill, which must be approved by Congress before it can be implemented, is expected to raise approximately $360 billion over ten years.
This would affect not only their declared income but also their stock holdings and other forms of wealth.
A previous study by the US administration stated that this last fall about 400 billionaire households paid only an average of 8.2% in taxes on their income between 2010 and 2018, which is way below the percentage of many US households.
White House representatives mention that they are aiming for the richest people in the country
If the Biden administration’s proposal were to be approved, millionaire Elon Musk, and the world’s richest man, will have to pay $50 billion more in taxes and Amazon founder Jeff Bezos about $35 billion more according to calculations by Gabriel Zucman, an economist at the University of California at Berkeley.
This proposal may be familiar to what fellow democrat Senator Bernie Sanders and Democratic representative Alexandria Ocasio-Cortez were proposing during the 2021 presidential campaign, where it was suggested that taxing the billionaires in order to create a more balanced wealth distribution.