Perspectives: The Plan to Raise Billionaires' Taxes

Additional taxes on American billionaires, proposed by Democratic lawmakers as a way to help fund President Joe Biden's agenda, have been met with resistance from conservatives and key moderate Democrats.

Under the plan, Americans with more than $1 billion in wealth or who earn over $100 million yearly for three straight years would pay an annual "unrealized capital gains" tax on asset growth, such as real estate and stocks, even if the assets aren't sold. The tax increase is billed as a way to fund the Biden administration's multi trillion-dollar spending plans for social welfare and climate change. Key moderate Sen. Joe Manchin (D-W.Va.) publicly criticized the plan Wednesday shortly after Senate Democrats officially announced it, casting doubt on its chances of becoming law. The proposal would raise taxes on roughly 700 Americans.

Some finance experts previewed potential legal challenges the measure could face. Left voices often voiced support for the proposal and highlighted the U.S. billionaires who saw their wealth grow significantly during the pandemic. Right-rated voices often denounced the plan as federal overreach and argued that trying to tax unrealized asset gains would be highly problematic and impractical.