News and Commentary

President Introduces 2023 Budget Proposal, Calls for Higher Taxes on Billionaires By Todd A. Moll, CFP®, CFA

On March 28, the Biden administration unveiled its fiscal budget for 2023, indicating its plan to “cut costs for families, cut the deficit and expand the productive capacity of the economy.” Among the provisions included in the budget are higher tax rates for corporations and individuals, including a new minimum tax on billionaires. Whether these proposals will garner the congressional votes required to enact them into law remains to be seen.

The president’s budget calls for increasing the corporate tax rate from 21 percent to 28 percent and reinstating the top marginal income tax rate from 37 percent to 39.6 percent, which was in effect prior to the enactment of the Tax Cuts and Jobs Act in 2018. Also included in the budget are proposals to eliminate tax deferrals on gains from 1031 like-kind exchanges of real property and to begin taxing carried interest as regular income (currently at a top rate of 37 percent) rather than at the lower capital gains rate of 20 percent.

The one provision of the budget garnering significant media attention is a “Billionaire’s Minimum Income Tax,” which, if enacted, would apply to the top 0.01 percent of earners and households worth more than $100 million. The budget calls for households with net worth of more than $100 million to pay a 20 percent federal tax on their full income, which includes taxable earnings and both realized and unrealized gains. Currently, individuals are not taxed on unrealized gains; taxation occurs at the time of a recognition event, such as the sale or disposition of an appreciated asset. Under the proposal, individuals would pay tax on gains just once; tax would not be imposed a second time when an individual recognizes a gain.

Because we are in an election year, it is doubtful that the budget proposal in its current form will be enacted into law. We expect several months of congressional debates over the finer language of the budget proposal, which we expect Congress will temper significantly. Yet, it is important for individuals to review their current business structures and their estate plans to ensure they are maximizing their opportunities for tax efficiency and wealth protection over the long term.

About the Author: Todd A. Moll, CFP®, CFA, is a director and chief investment officer with Provenance Wealth Advisor (PWA), an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs, and a registered representative with Raymond James Financial Services. He can be reached at the firm’s Ft. Lauderdale, Fla., office at (954) 712-8888 or via email at

Provenance Wealth Advisors, 515 E. Las Olas Blvd., Ft. Lauderdale, FL 33301 (954) 712-8888.

Todd A. Moll is a registered representative of and offers securities through Raymond James Financial Services, Inc., Members FINRA/SIPC. Raymond James is not affiliated with and does not endorse the opinions or services of Berkowitz Pollack Brant Advisors + CPAs. PWA is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc., and Provenance Wealth Advisors.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the advisors of PWA and not necessarily those of Raymond James. RJFS does not provide tax advice. You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

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Posted on April 5, 2022