Commentary
The Biden budget proposal includes a “billionaire tax.” On Dec. 31, 2023, taxpayers with over of $100 million of net worth would be subject to a 20 percent minimum tax on unrealized appreciation on all of their assets. Future years would see additional minimum taxes on subsequent unrealized gains.
Taxpayers reaching $100 million of net worth after 2023 would be subject to the proposed minimum tax in the first year they reached that wealth plateau.
The proposed minimum tax would subject all unrealized gains of the taxpayer to the new minimum tax in 2023. Treasury’s estimated tax receipts over the first 10 years of the tax law are estimated to be $360 billion. Most of that amount would be the first-year liability with payments allowed (with interest) to be made over nine years.
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