US President proposes to tax ‘billionaires’ at least 20%

The “Billionaire Minimum Income Tax” is a minimum tax rate of 20% that applies to US households with incomes of $100 million or more per year. By this standard, about 700 people would face the additional tax.

The CNBC document shows that the minimum tax rate would ensure that “Rich Americans no longer pay lower taxes than teachers and firefighters.”

In addition, the proposed tariffs could help reduce the US budget deficit by about $360 billion over the next decade.

The proposed “billionaire tax” is part of President Joe Biden’s 2023 budget plan that is expected to be released on March 28. His new spending plan is expected to reduce the budget deficit by a total of $1.3 trillion over 10 years.

According to the US Congressional Budget Office, the US federal budget deficit for fiscal year 2021 is $2.8 trillion, the second-highest in history and just $360 billion lower than in 2020.

The rapid recovery of the US economy after the pandemic COVID-19 helped the country reduce the budget deficit.