Wyden, Cohen, Beyer Introduce the Billionaires Income Tax Act
In a Sign of Support Growing Among Democrats, the Billionaires Income Tax is a Bicameral Proposal for the First Time and Crosses 20 Senate Cosponsors
Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) today reintroduced the Billionaires Income Tax Act, legislation that would help ensure billionaires pay a fair share in taxes every year just like Americans who work for a living already do. Congressman Steve Cohen (Tenn.-9), and Congressman Don Beyer (Va.-8) introduced identical legislation in the House of Representatives, making this the first Congress in which the Billionaires Income Tax is a bicameral proposal.
“While people like nurses and firefighters pay taxes straight out of every paycheck, there’s a thicket of little-known tricks and accounting rules that allow billionaires to opt out of paying a fair share of tax on the income they enjoy,” Senator Wyden said. “Billionaires and Republicans are going to offer up the same set of trickle-down arguments to pretend this proposal would bring about the end of western civilization. The only time you hear billionaires claim they can’t scrounge together any cash is when somebody brings up taxes, and odds are a lot of these mega-wealthy individuals are crying poverty from their yachts and private islands. This is a carefully designed proposal that draws on accounting methods already used in the tax code and raises revenue without increasing any tax rates.”
“The ultrawealthy pay very low tax rates because their affluence derives primarily from the soaring value of their assets. Our current tax code lets billionaires avoid taxes on gains unless and until they sell their assets," Congressman Cohen said. "So while working families pay taxes on each and every paycheck or pension payment, the ultrawealthy can make hundreds of millions of tax-free dollars a year. Instead of all their billions going to buying superyachts, rocket ships, professional sports teams, and Twitter, it is time that billionaires pay at least a minimal level in taxes like everyone else. There is overwhelming public support for this proposal, which will close loopholes in our tax code and ensure billionaires pay a fairer share. It’s well past time to make our tax code fair. I haven’t asked him, but it looks like Pope Leo would endorse the Billionaire Income Tax Act. He recently did an interview with a biographer and excerpts were released on Sunday. Speaking of societal polarization, he said it is in part caused by income inequality. One factor, he said, is ‘the continuously wider gap between the income levels of the working class and the money that the wealthiest receive. For example, CEOs that 60 years ago might have been making four to six times more than what the workers are receiving, the last figure I saw, it’s 600 times more than what average workers are receiving. Yesterday the news that Elon Musk is going to be the first trillionaire in the world. What does that mean and what’s that about? If that is the only thing that has value anymore, then we’re in big trouble.’ I agree with Pope Leo and hope our bill will have a significant effect on what everyone seems to acknowledge is a huge and growing problem.”
“The Billionaires Income Tax Act is a simple policy that would prevent the ultra-wealthy from paying a lower tax rate than working families – a crucial and necessary step toward rectifying the shortcomings of the failed trickle-down economics approach," Congressman Beyer said. "Republicans continue to cut taxes for the richest among us while making it harder for working people to make ends meet. Our bill instead champions a fair tax policy that not only places our nation on a more robust fiscal foundation but also promotes fairness in the tax code by requiring the super-rich to pay their share, reducing inequality, and funding services the American people depend on.”
The Billionaires Income Tax would expand on an accounting method already used in the U.S. tax code to ensure billionaires pay a fair share. It would not increase any current-law tax rates. The proposal would apply to fewer than 1,000 taxpayers and raise more than $500 billion, 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. It would not affect middle income taxpayers in any way.
The legislation is cosponsored by Senators Sheldon Whitehouse (D-R.I.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), Ben Ray Luján (D-N.M.), Peter Welch (D-Vt.), Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Richard Blumenthal (D-Conn.), Tammy Duckworth (D-Ill.), John Fetterman (D-Pa.), Martin Heinrich (D-N.M.), Mazie Hirono (D-Hawai’i), Edward J. Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Patty Murray (D-Wash.), Jack Reed (D-R.I.), Brian Schatz (D-Hawai’i), and Chris Van Hollen (D-Md.).
A one-page summary of the Billionaires Income Tax can be found here.
A section-by-section summary of the Billionaires Income Tax can be found here.
Legislative text can be found here.
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 here.
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