President Biden plans to propose minimum tax on households worth more than $100 million

The White House budget office released Saturday fact sheets indicating that President Biden plans to propose a minimum tax of 20% for USA households that are worth more than $100 million. This is proposed in order to bring a reduction in the projected budget deficit by approximately more than $1 trillion over the next 10 years.

Introducing a minimum tax on the wealthiest Americans would result in a significant reduction in taxes. The tax would apply to the top 0.01% of households, with half of the revenue expected to come from households with more than $1 billion and more. By enforcing the minimum tax, the wealthiest sliver of America would be prevented from paying lower rates than the middle class and increasing revenues to finance Biden's domestic agenda and limit the deficit in relation to the U.S. economy.

Moreover, the lower deficits reflect the resurgence of the economy as the United States bounces back from the pandemic. After a historic spending spree to combat the Coronavirus, it is good to see the government's balance sheet improving.


In the past year, Republican lawmakers have claimed that spending by the Biden administration has caused more economic pain in the form of higher prices. As the U.S. economy reopened after the pandemic, inflation occurred because of low-interest rates, supply chain problems, and, currently, disruptions in the oil and natural gas markets caused by Russia's invasion of Ukraine.

In the meantime, it remains to be seen if Congress will move forward with Biden's proposal. A billionaires' tax, which assessed unrealized capital gains of the wealthiest Americans, was proposed by Senate Democrats last year. In the end, the measure did not pass.