Biden’s Billionaire Tax Proposal

President Biden is going after billionaires. Earlier this week Biden released a budget proposal he calls the Billionaire Minimum Income Tax. It sets a minimum tax rate of 20% for billionaires worth more than $100 million.

The tax — if enacted — applies to income and unrealized capital gains.

Biden’s proposal will impact very few people. Just 0.1% of Americans have income totaling $100 million or more. Half of the $360 billion expected to be raised from the tax in the next decade will come from the 700 billionaires living in the U.S.

In a statement, the White House said that figure will count for a third of the $1.3 trillion Biden wants to trim from the federal budget.

“President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire,” the White House said. “He also believes that it is wrong for America to have a tax code that results in America’s wealthiest households paying a lower tax rate than working families.”

Those with incomes over $100 million who don’t pay the 20% will owe what Biden calls a “top-up payment.” That will make up the difference in what’s paid and the 20% that ought to be paid.

Current tax law says assets like stock or property are not taxable. That’s where most of the ultra-rich put their wealth. They are only taxed when that asset is sold. “As a result, this new minimum tax will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations,” the White House statement noted.

The president’s budget proposal also includes raising the corporate tax rate to 28%. Currently it sits at 21%. In addition Biden wants a minimum tax enacted on a global scale to go after offshore tax havens.

Biden’s proposed budget will drop the nation’s annual deficit by more than a $1 trillion over the next 10 years. The 2021 fiscal budget had a deficit of $2.8 trillion and the national debt has topped $30 trillion.

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