On Monday, Joe Biden set a new minimum income tax for billionaires as part of his budget proposal for the next fiscal year.

Here’s what The White House said:

“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, including unrealized appreciation.”

“This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.” 

The 20 percent minimum tax rate will apply to U.S. households worth $100 million or more, the White House also added:

“The proposal allows wealthy households to spread initial top-up payments on unrealized income over nine years, and then five years for top-up payments on new income going forward. Stretching payments over multiple years will smooth year-to-year variation in investment income, while still ensuring that the wealthiest end up paying a minimum tax rate of 20 percent. Illiquid taxpayers may opt to pay later with interest.”

Watch it here: CNBC Television/Youtube

“This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters,” the document claimed.

Fox Business also reported:

Wealthy households who already pay 20% on their full income will not pay an additional tax under the proposal. However, the document noted that if a “tax-free unrealized income allows a wealthy household to pay less than 20 percent on their full income, they will owe a top-up payment to meet the 20 percent minimum.”

The document also said the tax “will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations.”

The document pointed out that the minimum income tax will “make America’s tax code fairer and reduce the deficit by about $360 billion in just the next decade.”

The document also notes, “In effect, the Billionaire Minimum Income Tax payments are 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, and eliminates the inefficient sheltering of income for decades or generations.”

CNBC report also added:

More than half of American households paid no federal income tax last year due to Covid-relief funds, tax credits and stimulus, according to a new report.

The nonpartisan Tax Policy Center estimates that 57% of U.S. households paid no federal income taxes for 2021, up substantially from the 44% before the pandemic.

Howard Gleckman, senior fellow at the Tax Policy Center, said Covid-related job losses, a decline in incomes, stimulus checks and tax credits were largely responsible for the increase.

Sen. Rick Scott (R-Fla.) told the NPR news that the 11-point plan he has proposed and said he doesn’t believe the tax increases.

He said, “I’m not going to raise anybody’s taxes, but I want to have the conversation, we’ve got able-bodied Americans who are living off of government programs instead of working, and that’s caused by these Democrats’ policies. And that doesn’t work. We got billionaires that are not paying, you know, income taxes.″

According to Biden Administration critics, the richest Americans have paid nearly all federal income taxes for decades.

In a statement, the 2021 study by the Heritage Foundation noted, “High-income Americans already pay the large majority of taxes, and the U.S. tax system is highly progressive when compared to those of other countries. Proposals such as the wealth tax will make the U.S. financial system even more unbalanced and would slow our economic recovery.”

The study also added, “The latest government data show that in 2018, the top 1% of income earners—those who earned more than $540,000—earned 21% of all U.S. income while paying 40% of all federal income taxes. The top 10% earned 48% of the income and paid 71% of federal income taxes.”

Sources: Conservative Brief, Fox Business, CNBC

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