Dubbed the "Billionaire Minimum Income Tax," the Biden administration proposal, as highlighted in the document, aims to "ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income, including unrealized appreciation."
As part of the plan, a 20% minimum tax rate would be placed on U.S. households worth more than $100 million, with more than half the revenue coming from households worth more than $1 billion.
"This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters," the document stated.
Wealthy households who already pay 20% on their full income will not pay an additional tax under the proposal. However, the document noted that if a "tax-free unrealized income allows a wealthy household to pay less than 20 percent on their full income, they will owe a top-up payment to meet the 20 percent minimum."
The document also said the tax "will eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations."
Additionally, the document claimed the minimum income tax will "make America’s tax code fairer and reduce the deficit by about $360 billion in just the next decade."
"In effect, the Billionaire Minimum Income Tax payments are a prepayment of tax obligations these households will owe when they later realize their gains," the document said. "This approach means that the very wealthiest Americans pay taxes as they go, just like everyone else, and eliminates the inefficient sheltering of income for decades or generations."
Biden's 2023 budget is expected to be released on Monday.