Senate Democrats push for tax on billionaires to help fund spending plan

As Democrats inch closer to finalizing their social spending package, Senate Democrats are eyeing a tax on billionaires amid pushback on income and corporate levy hikes.

The proposal, called the Billionaires Income Tax, may affect roughly 700 Americans with more than $1 billion of wealth or earning over $100 million annually for three consecutive years.

Billionaires may face an annual levy on the increased value of assets, such as stocks and bonds, regardless of when they sell, known as “mark-to-market.” However, investors may still write off losses every year.

The plan also addresses growth for the wealthy’s non-tradeable property like real estate, including a charge for deferred gains upon sale. 

“In a package that’s supposed to be about giving everybody a shot to get ahead, it would be a big mistake, from both a policy and political perspective, not to ask billionaires to pay a fair share,” said Senate Finance Committee Chairman Ron Wyden, D-Ore., who first proposed a mark-to-market plan in 2019.