American billionaires will be targeted by the White House in a bid for a new minimum tax proposal to be passed in the 2023 budget, as stated in a document from the Biden administration which was procured by Fox News. It has also been called the “Billionaire Minimum Income Tax” which was processed by the Biden office.
This document is said to make sure that the richest Americans pay 20% of their annual income, which also includes their unrealized capital gains. According to the document, those U.S. households worth more than $100 million will be eligible to pay the tax.
According to the new proposal, households that are already paying 20% or more on their earnings will not be required to pay an additional amount.
In addition, the document also stated that this minimum income tax will ensure a fairer tax code for all Americans and also shrink the deficit by an estimated $360 billion in nearly the next 10 years.
In reality, the Billionaire Minimum Income Tax is a measure of tax prepayments which will be owed by these local households after they realize their gains. This method of compliance is planned to ensure payment of taxes and is expected to significantly reduce tax evasion.
President Biden’s 2023 annual budget is expected to be released on Monday.