Joe Biden's 'Billionaire Minimum Income Tax' Plan Explained

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Joe Biden's 'Billionaire Minimum Income Tax' Plan Explained
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The budget proposes that all households worth more than $100 million pay at least 20 percent in taxes on both income and 'unrealized appreciation.'

President Joe Biden's budget proposal for the 2023 fiscal year includes a 'Billionaire Minimum Income Tax.'The budget proposes that all households worth more than $100 million pay at least 20 percent in taxes on both income and 'unrealized appreciation'—the increase in an unsold investment's value.

'Biden's proposal would allow wealthy households to spread some payments on unrealized income over nine years, and then for five years on new income going forward.Stretching payment over multiple years is meant to smooth year-to-year variation in investment income, while still ensuring that the wealthiest end up paying a minimum tax rate of 20 percent.

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