The White House is all set to reveal a new amount for minimum income tax that all the billionaires would have to pay. This is connected with the new budget proposal by Joe Biden, the President of America, for the year 2023 as per a document of the White House that was released on Saturday.
Impact Of The Minimum Income Tax On Society?
The Minimum Income Tax for billionaires provides that people having a household worth $100 million will have to pay a minimum of 20% of their entire income as income tax. The total income will also consist of investment income that is unrealized and is mentioned in the fact sheet of the White House.
This new proposal of minimum Income Tax would ensure that the wealthiest people of America are paying much more than mere firefighters and teachers. This proposal of a new tax system for millionaires belongs to the wish of the Democratic Party with their progressive base which has the objective of imposing heavier taxes on rich Americans.
Though several efforts are given for this new proposal to become law, the reality of how much time it would require is still unsettled on Capitol Hill as several other party members have also tried to execute this. This new tax policy was released this Monday and as per the White House, the new money would make up for the deficit of $360 billion in the next ten years and the entire budget is being made to decrease the overall deficit of $1 trillion.
The rich people who are already paying 20% income tax do not have to pay the top-up payment and people paying the top-up tax would have to pay for continuous nine years and then the next five years will be marked by a new income. The policy of taxing the rich people more has been a crucial agenda in the election of 2020 which was advocated by Elizabeth Warren, Bernie Sanders, and many more Democrats.