The wealthiest American taxpayers will pay a minimum tax on their income each year, according to a budget proposal unveiled by President Joe Biden's administration.
This minimum tax would apply to the 0.01% richest households those with more than $100 million, and more than half of the revenue would come only from billionaires, the White House announced. It would ensure that, in any given year, they pay at least 20% of their total income in federal income taxes, it added.
The provision in the annual budget proposal meets a request from progressive members of Biden's Democratic Party, who have called for measures to raise taxes on the wealthiest Americans as a way to address inequality. Similar proposals were discussed last year during negotiations on Build Back Better, a massive spending bill that Biden proposed to overhaul the country's social services and fight climate change, but which has been stalled because of divisions among Democrats in Congress.
The budget would also raise the corporate tax rate to 28%, reversing legislation passed under Biden's Republican predecessor Donald Trump in 2017 that lowered it to 21%.
While their profits have soared, their investment in our economy has not increased: the tax cuts have not gone to workers or consumers, the White House said, noting that the new rate is still the lowest tax rate companies have faced since World War II, except in the years following the 2017 tax cut.
Washington backed a deal negotiated under the auspices of the Organization for Economic Cooperation and Development that would impose a 15% minimum tax on companies worldwide. The White House said the budget proposal "contains additional measures to ensure that multinationals operating in the United States cannot use tax havens to reduce the global minimum tax."
Source: CNA
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