<div><div>             Wyden Leads Democratic Colleagues in Introducing Billionaires Income Tax Legislation cosponsored by 15 Democratic Senators would close loopholes in the tax code that let billionaires avoid paying their fair share Washington, D.C. – Senate Finance Committee Chairman Ron Wyden, D-Ore., today led colleagues in introducing the Billionaires Income Tax Act, legislation to ensure billionaires start paying their fair share in taxes.  Wyden is joined by U.S. Senators Debbie Stabenow, D-Mich., Bob Casey, D-Pa., Sheldon Whitehouse, D-R.I., Elizabeth Warren, D-Mass., Brian Schatz, D-Hawaii, Mazie Hirono, D-Hawaii, Tammy Baldwin, D-Wis., Sherrod Brown, D-Ohio, Bernie Sanders, I-Vt., Jeff Merkley, D-Ore., John Fetterman, D-Pa., Tina Smith, D-Minn., Peter Welch, D-Vt., Jack Reed, D-R.I., and Ed Markey, D-Mass., in introducing the bill.  “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. “You can only have a successful economy if you have a tax code that treats everyone fairly. 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.”  The Billionaires Income Tax Act would, for the first time, end one of the most prominent, legal ways that billionaires avoid paying taxes known as “buy, borrow, die.” Buy, borrow, die works as follows:  Buy: A billionaire uses their wealth to buy assets that appreciate in value (real estate, stocks, artwork, collectibles).  Borrow: The individual then borrows against that asset’s growing, untaxed value to fund their extravagant lifestyle, purchasing yachts, luxurious vacations, expensive art deals, and more. All the while, the assets continue to go up in value without paying a dime in tax.  Die: When the individual dies, their assets are passed to their children or other beneficiaries, often entirely tax-free, and the cycle continues.  The proposal would only apply to taxpayers with more than $1 billion in assets, or more than $100 million in income for three consecutive years.  “Teachers and firefighters shouldn’t be paying higher tax rates than the ultra-wealthy. It’s that simple,” said Senator Whitehouse. “Our legislation will level the playing field by closing tax loopholes to ensure the highest earners pay their fair share in taxes.”  “It’s common sense that billionaires should not pay lower tax rates than teachers, mechanics, and firefighters,” said Senator Stabenow. “The wealthy need to pay their fair share – plain and simple. And this legislation will help make it happen.”  “The wealthy hide their money in everything from stocks and real estate to yachts and expensive art – saddling the rest of us with the cost. This is a commonsense step to close one of the most exploited loopholes that the wealthy use to get out of paying their fair share,” said Senator Brown.  “For too long, billionaires have rigged the rules to cut their taxes to the bone, all while working families struggle to make ends meet. We should be investing in American families, not letting billionaires off the hook – and the Billionaires Income Tax takes an important step to make our tax system fairer,” said Senator Warren.  "Plain and simple, the system is rigged to benefit the ultra-rich and it’s time we level the playing field. I am proud to join my colleagues in introducing legislation to finally make sure that billionaires at the top pay their fair share and bring some fairness to our tax system,” said Senator Baldwin.  “For too long, our country’s tax code has rewarded wealthy individuals, enabling them to get away with paying lower tax rates than working families,” said Senator Hirono. “The Billionaires Income Tax Act would close loopholes in the tax code to ensure billionaires pay their fair share in taxes, while raising hundreds of billions of dollars to fund critical programs like Social Security and Medicare.”  “It is unacceptable that the wealthiest people in this country have all sorts of loopholes and cutouts in our tax code, while working Americans play by a different set of rules,” said Senator Smith. “We need to level the playing field so that folks at the very top are treated the same as everyone else. This legislation will help close loopholes and create a more fair and equitable tax code so that those at the top finally start paying their fair share.”  “Billionaires have rigged our tax system so that many contribute virtually nothing,” said Senator Merkley. “This is fundamentally unfair, undermining the legitimacy of the entire tax system. This has to end. And this bill is the way to end it.”  “While millions of Americans pay taxes directly from their paycheck each month, billionaires are able to shield their wealth from taxation and pay a lower tax rate on their earnings and wealth than the typical, hardworking family. Our bill ends this disparity and ensures that billionaires pay their share of taxes just like everyone else. This is about restoring fairness to our tax code,” said Senator Reed.  “Billionaires have gotten away for far too long with paying next to nothing in taxes – all while their bottom lines have continued to go up. This bill would make sure they finally pay their fair share, just like working Americans have been doing all along,” said Senator Schatz.  The Billionaires Income Tax is also endorsed by over 100 supporting organizations. A letter of endorsement with the full list of supporting organizations can be found <a href="https://www.finance.senate.gov/imo/media/doc/112923atfcoalitionsignonletterendorsingwydenbit.pdf">here</a>.  Today’s introduction closely follows a series of investigations by Wyden and his staff on the Senate Finance Committee to shed light on the various ways that ultra-wealthy Americans legally avoid paying their fair share in taxes. Earlier this month, Wyden also chaired a <a href="https://www.finance.senate.gov/hearings/examining-how-the-tax-code-affects-high-income-individuals-and-tax-planning-strategies">hearing </a>during which members heard a firsthand account of how billionaires exploit loopholes in the tax code to avoid paying tax.  A one-page summary of the Billionaires Income Tax can be found <a href="https://www.finance.senate.gov/imo/media/doc/billionairesincometaxonepager.pdf">here.</a>   A. section-by-section summary of the Billionaires Income Tax can be found <a href="https://www.finance.senate.gov/imo/media/doc/billionairesincometaxsectionbysection.pdf">here.</a> Legislative text can be found <a href="https://www.finance.senate.gov/imo/media/doc/billionaires_income_tax_legislative_text.pdf">here.</a> ### The Billionaires Income Tax Senator Ron WydenNovember 30, 2023 Working Americans like nurses and firefighters pay taxes out of every paycheck, but billionaires do not. They’re able to avoid paying a fair share in taxes for decades, if not indefinitely, through a simple scheme: Buy: Billionaires acquire and hold assets like stocks and real estate that are likely to rise in value. Borrow: They borrow against those assets, effectively turning their stockpiled wealth into liquid income to fund their lifestyles and acquire more assets. They do not, however, pay taxes on that income. Instead they pay minimal borrowing fees to Wall Street institutions. Die: After the billionaire’s death, when the assets are eventually passed onto their spouse or children, the tax owed on the accumulated value of those assets disappears. They can be sold tax-free. Expanding on an accounting method already used in the U.S. tax code, the Billionaires Income Tax would ensure wealthiest people in the country finally pay their fair share, just like wage earners who pay out of every paycheck. It would apply to roughly 700 taxpayers and raise hundreds of billions of dollars, which could be used to help shore up funding for vital programs like Social Security and Medicare. Only taxpayers with more than $100 million in annual income or more than $1 billion in assets for three consecutive years would be covered by the proposal. The Billionaires Income Tax will tackle this from three angles: Taxation of gains and losses from assets like stocks Tradable assets (like stocks that are easily valued on an annual basis) owned by billionaires will be marked to market each year. This means that billionaires will pay tax on gains or take deductions for losses, whether or not they sell the asset. Taxpayers would be able to carry back their losses for up to three years in certain circumstances. This will ensure billionaires start paying tax on their income each year, just like working Americans. Deferral charge on gains from assets like real estate When a billionaire sells a nontradable asset (like real estate or a business interest), they would pay their usual tax, plus a “deferral recapture amount,” which is akin to interest on tax deferred while the individual held that asset. This approach simplifies compliance by eliminating the need for annual valuations of these nontradable assets. The amount owed is calculated by allocating an equal amount of gain to each year the billionaire held that specific asset, determining how much tax would have been owed on the gain in each year, and assessing interest on unpaid tax for the time the tax was deferred. The interest rate used is the short-term federal rate plus one percentage point, and no interest accrues prior to the date of enactment of the proposal or the first tax year the individual is subject to the Billionaires Income Tax, whichever is later. Transition and anti-abuse rules The first time billionaires’ tradable assets are marked-to-market, they may elect to pay the resulting tax over five years. They may also elect to treat up to $1 billion of tradable stock in a single corporation as a nontradable asset, which will help to ensure that the proposal does not affect the ability of an individual who founds a successful company to maintain their controlling interest. The proposal also contains rules to prevent avoidance of the Billionaires Incomes Tax.</div></div>

Senate Dems Announce Bill to Close Billionaires’ Tax ‘Loopholes’

Senate Dems Announce Bill to Close Billionaires’ Tax ‘Loopholes’

U.S. Senate

U.S. Senate Finance Committee

The Billionaires Income Tax Act would fix a tax code “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,” Senate Finance Committee Chair Ron Wyden, D-Ore., said in a November 30 release with 10 other Democratic senators.

The Billionaires Income Tax Act would fix a tax code “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,” Senate Finance Committee Chair Ron Wyden, D-Ore., said in a November 30 release with 10 other Democratic senators.

The <a href="/lr/resolve//7hlqp">Billionaires Income Tax Act</a> would fix a tax code “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,” Senate Finance Committee Chair Ron Wyden, D-Ore., said in a November 30 release with 10 other Democratic senators.