Biden unveils higher taxes on the rich as part of $5.8 trillion budget

President Joe Biden made big announcements on Monday regarding the most significant tax hike in the history of the US, mainly targeting ultra-rich Americans and corporations.

The president said the hike in taxes of nearly $2.5 trillion was a part of the $5.8 trillion budget for the financial year 2023, which will start in October.

These high taxes will be on the shoulders of Wall Street, basically big corporations and ultra-wealthy U.S. households, which will be in the form of steeper corporate rates, a modified wealth tax, and a global minimum tax.


On Monday, the president addressed the White House to justify the high tax hike, saying, "We are only trying to reduce the Trump deficits and get the fiscal house to order." In addition to that, the president also said that "We want to ensure that the investments and economic growth lead towards a more sustainable economy while we also want to ensure that the corporations and ultra-rich pay some fair price for the same."

The taxes announced on Monday include:

• Minimum 20% tax on the income of U.S. households worth $100 million or more.
• Households paying 20% will not be required to pay any additional tax.
• Billionaires not paying 20% on their income will owe an additional tax that makes the difference to meet the new minimum.

President also proposed hiking the corporate tax rate, which is currently 21%, by almost 7%, ending up to 28% and stressed implementing a global minimum tax to ensure that the tax havens undergo a crackdown.

Under this proposed budget, the nation will get benefits of more than $1 trillion in terms of the reduced national deficit over the next decade. This is a big step toward reducing the national debt, which has passed $30 trillion as per the data from the fiscal year 2021.