President Joe Biden unveiled a budget plan Monday that includes a
minimum tax for ultra-wealthy households, raises the corporate tax
rate, and backs restrictions on stock buybacks.
The president’s fiscal year 2023 budget would create a 20% minimum tax
for households worth more than $100 million. The minimum tax would
apply “only to the wealthiest 0.01% of households … and over half the
revenue would come from billionaires alone,” according to the budget.
The budget plan also calls for raising the corporate tax rate to 28% from 21%.
In aiming to foster competitive markets, the budget notes the
president’s support for legislation that would require corporate
executives to hold on to company shares that they receive for several
years after receiving them and prohibiting them from selling shares in
the years after a stock buyback. “This would discourage corporations
from using profits to repurchase stock and enrich executives, rather
than investing in long-term growth and innovation,” the budget states.
On the campaign trail and since coming into office last year, Mr.
Biden has called for raising taxes on wealthy households and
corporations. “Budgets are statements of values, and the budget I am
releasing today sends a clear message that we value fiscal
responsibility, safety and security at home and around the world, and
the investments needed to continue our equitable growth and build a
better America,” Mr. Biden said in a statement Monday.
But Congress has the ultimate say on what the budget will look like.
Negotiations will likely ramp up in the coming months as the fiscal
year 2023 starts on Oct. 1.