Biden to call on Congress to pass billionaire tax in budget proposal
The new tax would make it mandatory for households worth more than $100 million to pay at least 20% on their income and unrealized gains, according to the New York Times.
At the moment, stocks and bonds are taxed only when they are sold, allowing many of the ultrarich to get away with not paying their fair share.
It is the first time Biden has expressed support for a tax on wealth, not just income. The White House has called it "a prepayment of tax obligations these households will owe when they later realize their gains."
"This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else," the administration continued.
The Billionaire Minimum Income Tax would apply to just 0.01% of American households, but it is estimated that the funds generated would cut federal deficits by more than $1 trillion over 10 years.
The proposal is part of the Biden administration's budget request for the coming fiscal year. It is aimed at addressing concerns over rising inflation, cutting the federal deficit, and financing the Biden administration's social policy agenda.
In addition to the tax proposal, Biden is also expected to ask for a whopping $773 billion in military spending – an increase of $31 billion over the current fiscal year.
Cover photo: Collage: 123RF/jezper & IMAGO / newspix