President Joe BidenCNBC obtained a document that showed CNBC expects him to present a new minimum income tax, which would be mainly targeted at billionaires during his unveiling of the 2023 budget.

It is also known as the “Billionaire Minimum income Tax”. This tax would apply a 20% minimum rate of income tax to households in America worth over $100 million. The wealthiest Americans could generate more than half of the revenue.

According to the document, “This minimum tax would ensure the wealthy Americans do not pay a higher tax than firefighters and teachers.”

According to the document, the proposed levy will reduce deficit to $360 billion over the next decade.

The proposal does not apply to wealthy families that are already contributing 20% of their total income. They’ll have to pay a “top up payment” if they don’t contribute more than 20% in order to reach the minimum.

The document said that the new minimum tax would eliminate the possibility for incomes not realized by ultra-high-net worth households to be untaxed over decades or even generations.

Biden will release his 2023 budget on Monday, which includes a new tax proposal. A White House fact sheet on Saturday stated that Biden’s new spending plan would reduce deficit to $1.3 trillion in the next decade.

The question is still open as to whether Congress will take up Biden’s offer. The Senate Democrats were successful last year. unveiled a billionaires’ taxThis would have been used to levy the capital gains not realized by the wealthy Americans. In the end, however, this measure failed to proceed.

In fiscal year 2021, the federal deficit totaled nearly $2.8 trillion — about $360 billion less than in 2020, according to the Congressional Budget Office.

A key factor in the reduction of deficit is also rapid economic recovery following pandemic lows. White House acknowledged the American Rescue Plan as a factor in lowering the deficit. It was designed to help struggling Americans during difficult times. Covid crisisFor your assistance, economy grow 5.7%In 2021.

People and businesses will need less pandemic and economic support, while a strong economy can mean higher household and business incomes. The fact sheet indicated that this will result in more revenues for the government of over $300 billion than the previous year.