According to the Washington Post, the White House will propose a direct tax on the 700 richest Americans in order to raise an estimated $360 billion over the next 10 years.
President Joe Biden walks towards members of the press prior to a Marine One departure from the White House. Alex Wong poses for a picture.
According to documents obtained by the Post and five anonymous sources, the plan would hit households worth more than $100 million with a 20% minimum tax rate.
billionaires would be subject to a 20% tax rate on their full income, including wages and unrealized gains on their investment portfolios, which currently aren't subject to taxes, according to the Post.
The Post reported that billionaires will have to make up the difference if they pay less than 20% in taxes.
The White House Office of Management and Budget and the Council of Economic Advisers estimated that 400 billionaire households paid an average of 8.2% of their income in federal taxes.
According to the Associated Press, Biden's proposed budget would cut the federal deficit by $1 trillion over the next decade.
The budget proposal will be supported by members of Congress. Attempts to tax billionaires have failed before. The Billionaires Income Tax was unveiled by Sen. Ron Wyden in October, but it would have taxed stock gains and other unrealized assets on a yearly basis.
The budget proposal is expected to be revealed by the White House on Monday.
According to a White House document reviewed by the Post, the Billionaire Minimum Income Tax will ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income.
The Washington Post reported that President Biden would unveil a new minimum tax on billionaires.
The new billionaire wealth tax is unveiled. Here is how the Democratic plan would work.
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