Senate Democrats have unveiled a plan to tax the gains billionaires make on the assets they own, as a way to help pay for President Biden’s social spending plan.
Democrats say the billionaire tax alone could raise hundreds of billions of dollars to help offset the cost of the final bill, which could end up around $1.5 trillion. It is part of a broader tax framework that also includes a new minimum tax on large corporations.
Senate Finance Committee Chair Ron Wyden, D-Ore., called the proposal a way to consistently tax billionaires who typically avoid paying annual income taxes.
“There are two tax codes in America,” Wyden said in a statement. “The first is mandatory for workers who pay taxes out of every pay check. The second is voluntary for billionaires who defer paying taxes for years, if not indefinitely.”
The plan comes as lawmakers are scrambling to finalize the legislation this week. Biden and top congressional Democrats say they need to reach a deal on a framework and also move forward on a stalled $1 trillion bipartisan infrastructure bill.