President Joe Biden has proposed a new tax on the ultra-wealthy as part of his 2023 federal budgetThis plan aims to cut the deficit by around $360 billion

It is not likely to get traction in Congress, according to experts.

A “billionaire minimum Income Tax” proposes a 20% levy for households with net worths of over $100 million. It will also affect the top 0.01%. According to a White House factsheet.

The 20% tax covers “total income”, which can include taxable earnings as well as unrealized capital gain or asset gains. You have installment payment options and an option to pay tax only on the wealth you own, the U.S. Department of the Treasury outlined.

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Administration claims that the plan will generate $360 billion annually over the next ten years. The proposal is already being challenged.

Rep. Josh Gottheimer of New Jersey, who is co-chair of Problem Solvers Caucus on Wednesday said that “the billionaire tax” and the way they have presented it doesn’t make sense. He also stressed the problems of taxing not realized gains.

He said, “I don’t believe that proposal will go anywhere.”

Senate Democrats floated a similar billionaire taxOct. to support their domestic spending agenda. The proposal was rejected by the majority of the party.

Furthermore, the possibility exists that, even if negotiations had failed, the levy might have survived. faced legal challengesAccording to policy experts and others, the overburdened IRSIt is possible that the law was not enforced.

Biden’s version for the billionaire tax could create administrative difficulties for some taxpayers such as business owners who exceed the $100 million threshold. Howard Gleckman is senior fellow at Urban-Brookings Tax Policy Center.

He explained that their assets were in their business. It’s difficult to value these assets.”

Gleckman stated that many European countries have dropped similar taxes to avoid the tax burden associated with assessing individuals’ wealth. 

He said that he believed it would be difficult for him to accept the offer, and referred to opposition within the Democratic Party. 

Other revenue-raising measures that affect individuals are included in the budget, including hiking the top marginal tax rateCapital gains above $1,000,000 are subject to higher taxes and property transfers can be treated like sales. 

Many of these provisions were already defeated, so Democrats have limited time to move their legislative agenda.