Biden to propose minimum tax on households worth over $100 million

Washington — President Joe Biden intends to propose a minimum tax of 20% on households worth more than $100 million and cut projected budget deficits by more than $1 trillion over the next decade, according to a fact sheets released Saturday by the White House budget office.

The introduction of the minimum tax on the wealthiest Americans would represent a significant reorienting of the tax code. It would apply to the top 0.01% of households with half of the expected revenue coming from households worth $1 billion or more. The minimum tax would effectively prevent the wealthiest sliver of America from paying lower rates than families who think of themselves as middle class, while helping to generate revenues to fuel Mr.Biden's domestic ambitions and keep the deficit in check, relative to the U.S. economy.

In his proposal expected Monday, the lower deficits also reflect the economy's resurgence as the U.S. emerges from the pandemic. It's a sign that the government's balance sheet will improve after a historic burst of spending to combat the coronavirus.