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 to contain the deficit relatively 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.
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