The Strategist

Biden to propose 20% tax on billionaires' incomes

03/29/2022 - 10:07

Biden plans to impose a 20% tax on billionaires’ income. The initiative will affect 700 households with assets worth more than $100 million. Authorities believe that the new tax could bring $360 billion in revenue over 10 years.

DOD Photo by Carlos M. Vazquez II
DOD Photo by Carlos M. Vazquez II
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.