2023-12-03 -Land of the Free
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Democrats introduce 'billionaires tax' on unrealized capital gains
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[Washington Examiner] Sen. Ron Wyden (D-OR) and other Democrats introduced a proposal on Thursday that would tax the unrealized capital gains of billionaires and very high earners.
Wyden has spearheaded an effort to make a mark-to-market proposal law for years, and the new legislation is the latest iteration of that effort. The plan would affect those with net worths of over $1 billion. It would also apply to high earners who made more than $100 million in three consecutive years.
If it were to become law, the plan would be a massive departure from how the United States handles federal tax policy, as it would apply levies on the unrealized gains of assets such as stocks and bonds for the wealthiest people.
The bill targets legal investment and spending strategies that billionaires use to shield themselves from tax liability. Wyden’s office said the legislation goes after a strategy dubbed "buy, borrow, die." Wealthy taxpayers can invest in appreciable assets such as stocks and real estate and then borrow against the untaxed appreciated value of those assets to fund other purchases.
"America’s tax code is riddled with loopholes that allow the ultra-wealthy to get away without paying their fair share while working families have to play by a different set of rules and pay taxes out of each paycheck," Wyden said.
Loopholes you wh0res wrote
The proposal differs from the current tax regime because gains would be taxed even if not realized. Under the tax code, billionaires whose investments increase in value are taxed on that growth, known as capital gains, when those investments are finally sold off.
"You can only have a successful economy if you have a tax code that treats everyone fairly," he added. "My billionaires income tax will make that a reality by ensuring those at the very top start paying their fair share, just like the rest of us."
Co-sponsors of the legislation include several senators on the Left: Sens. Elizabeth Warren (D-MA), Bernie Sanders (I-VT), John Fetterman (D-PA), and Jeff Merkley (D-MA).
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Posted by Besoeker 2023-12-03 02:21||
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