Today, the Biden Administration will reveal its 2023 budget
On March 28, the Biden Administration will formally reveal the 2023 budget, which will include a new 20% minimum millionaire tax.
According to the White House, all new investments in the President’s budget will be funded by requiring the affluent and businesses to pay their fair share. President Biden will propose taxes on the wealthy today, dubbed the “Billionaire Minimum Income Tax” by the White House.
In actuality, the tax is planned to apply to persons with a net worth of $100 million or more, with a 20% tax on all their income, including unrealized gains. If implemented, the new tax ideas would raise an additional $36 billion in annual tax revenue.
According to Ylan Q. Mui of CNBC’s Squawk Box: “The government expects that this will generate $360 billion in revenue over the next decade. Only the wealthiest 0.1 percent of families would be impacted, with more than half of revenue coming from individuals worth more than a billion dollars.”
“This minimum tax would ensure that the richest Americans no longer pay a lower tax rate than teachers and firemen,” the White House wrote in a paper obtained by The Washington Post.
Senators Joe Manchin and Kyrsten Sinema have previously obstructed the passage of legislation taxing billionaires in the Senate.
The White House will introduce the proposed levy today. It would require the 700 richest American households to make a “top-up payment” if they pay less than 20% of their entire income in federal income taxes.
This category includes unrealized profits on assets such as stocks. “As a consequence, this new minimum tax eliminates the potential of ultra-high-net-worth families’ unrealised income to remain untaxed for decades or generations,” the paper added.
According to Gabriel Zucman, an economist at the University of California, Berkeley, Elon Musk, CEO of Tesla (NASDAQ: TSLA), would be compelled to pay an extra $50 billion per year under the idea, according to the Washington Post. Meanwhile, estimates indicate that Jeff Bezos, the founder of Amazon (NASDAQ: AMZN), would be obliged to pay an additional $35 billion.
Onlookers will closely monitor the issue to see whether or not the current budget will have an effect on the bitcoin market.
Notable is the Biden administration’s recent executive order, which asks for collaboration among several federal agencies in the United States to regulate cryptocurrencies, while the US Congress is also working on stablecoin-specific rules to address the possible dangers to financial stability.