U.S. President Joe Biden decided to introduce a tax of 20%, which will affect unrealized capital gains of American households worth more than $100 million, reports Bloomberg.
The Biden administration is proposing a “minimum income tax for billionaires” as part of the 2023 budget plan. The tax would apply to U.S. households with more than $100 million in assets: there are over 700 such households in the United States. Those who fall under the new law would have to pass a market-based assessment, meaning they would have to provide the IRS with income statements on the assets.
If enacted, the tax is expected to reduce the budget deficit by about $360 billion over the next decade.
source: bloomberg.com
