White House to propose new minimum tax on billionaires: media

US President Joe Biden’s administration will include more taxes on the wealthiest Americans in its 2023 budget proposal, due out Monday, US media reported on Saturday.

The “Billionaire’s Minimum Income Tax” would require the roughly 700 U.S. households worth more than $100 million to pay at least 20% of their total income, the Washington Post and other U.S. media reported, citing a White House document.

“This minimum tax would ensure that the wealthiest Americans no longer pay a lower tax rate than teachers and firefighters,” the document, quoted by the Post, states.

A study by the Biden administration this fall found that 400 billionaire households paid an average of just 8.2% in taxes on their income between 2010 and 2018, a rate often far lower than many American households.

The tax would also target unrealized capital gains on liquid assets, such as stocks, which are not taxed until they are sold.

The new measure, which requires congressional approval to enact, could generate up to $360 billion in new revenue over ten years, according to the document cited by the Post.

A longtime target of the political left, the plan could radically change the tax paid by American billionaires.

Tech titan Elon Musk, for example, would have to pay an additional $50 billion in taxes, and Amazon founder Jeff Bezos some $35 billion more, according to calculations by the economist at the University of California at Berkeley, Gabriel Zucman, quoted by the Post.

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