Biden expected to propose 20% billionaire tax

March 26 (UPI) -- President Joe Biden is expected to unveil a new 20% tax on the ultra wealthy as part of his 2023 budget proposal, reports on Saturday indicate.

The "Billionaire Minimum Income Tax" would impact the 700 richest people in the United States, according to five sources who spoke with The Washington Post, establishing the tax on all households worth more than $100 million.

The document detailing the tax plan, which was obtained by CNBC, states that Biden's proposed levy would reduce the federal deficit by about $360 billion over the next decade.

"This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters," the document said, adding later that it would "eliminate the ability for the unrealized income of ultra-high-net-worth households to go untaxed for decades or generations."

Billionaires pay much lower taxes than the average American because of the source of their income often stems from capital gains -- any increases in the value of their stock holdings aren't taxed until those assets are sold, allowing them to borrow against their accumulated gains without triggering a capital gains tax.

A September analysis issued by the White House Office of Management and Budget and Council of Economic Advisers found that the country's 400 wealthiest households paid an average federal income tax rate of just 8.2% between 2010 and 2018.

Biden is expected to unveil his proposed 2023 budget on Monday. The fate of his plan is unclear -- past attempts by the White House to impose taxes on the extremely wealthy were blocked by moderate lawmakers in his own party, Sen. Joe Manchin (D-W. Va.) and Sen. Kyrsten Sinema (D-Ariz.)

It's unclear whether Manchin and Sinema will support Biden's proposal. Reports of the new tax were publicized two days after Manchin reopened talks on the Democrats' broad climate and social spending bill, The Post reports, pointing to a willingness on the part of the senator to negotiate with the rest of his party.