How much revenue could the US collect from the new tax?

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The proposed Billionaire Minimum Income Tax could generate up to US$360 billion over a decade.

The Biden administration's 2023 budget proposal includes a new tax targeting the wealthiest American households, aiming to ensure they pay a minimum tax rate. This measure could significantly increase federal revenue, with projections indicating it could raise as much as US$360 billion over a ten-year period. The tax is designed to address disparities where some of the wealthiest individuals pay a lower effective tax rate than average workers.
Minimum Tax Rate and Scope

The proposed "Billionaire Minimum Income Tax" would apply to households with a net worth exceeding US$100 million. These households would be required to pay at least 20 per cent on their total income. This includes not only traditional income but also unrealized gains from the appreciation of liquid assets, such as stocks, which are typically not taxed until they are sold.
Rationale for the Proposal

This initiative stems from findings that suggest some of the wealthiest Americans pay a disproportionately low tax rate. For instance, a study indicated that 400 billionaire households paid an average of only 8.2 per cent on their income between 2010 and 2018. The administration's stated goal is to ensure that these ultra-wealthy individuals contribute at a rate comparable to or higher than that of middle-class professions like teachers and firefighters.
Potential Impact on High-Profile Individuals

The implications of this tax are substantial for some of the nation's most prominent billionaires. Calculations suggest that individuals like Elon Musk could face an additional tax liability of approximately US$50 billion. Similarly, Jeff Bezos might be required to pay an extra US$35 billion under the proposed tax structure, highlighting the significant financial impact on the ultra-rich.

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How much revenue could the US collect from the new tax?

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