US President Joe Biden intends to propose a 20% minimum tax on households with populations over $100 million and reduce the projected budget deficit by more than $1 trillion for the next decade, According to a fact sheet released Saturday by the White House Budget Office.
The introduction of minimum taxes for the wealthiest Americans represents a major redirection of the tax code. It will apply to the richest 0.01% of families and Half of the projected group is expected to come from families worth $1 billion or more.
Minimum tax It would effectively prevent the rich in the United States from paying lower rates than families who consider themselves middle-class, while helping to generate revenue to fund Biden’s domestic programs and relatively contain the deficit in the US economy.
In his proposal due on Monday, the deficit reduction also reflects a recovery in the economy as the United States emerges from the coronavirus pandemic. It is a sign that the government’s balance sheet will improve after the historic spending to combat COVID-19.
The pandemic’s fading and growth reduced the deficit from $3.1 trillion in fiscal year 2020 to $2.8 trillion last year and $1.4 trillion as projected for this year.