As Democrats work to figure out how to raise revenues to pay for their social spending agenda, a new tax on billionaires has emerged as a serious consideration, but it is already receiving opposition from Republicans and skepticism from some Democrats and tax policy experts. Senate Finance Committee Chairman Ron Wyden of Oregon said he's set to unveil his billionaires income tax as early as Tuesday night. The proposal would apply to the roughly 700 wealthiest Americans: those worth $1 billion or who have an annual income of $100 million for at least three straight years. "This is a billionaires income tax, it's not a wealth tax. It's a billionaires income tax," Wyden said Tuesday. "And we expect that these billionaires and there's something like less than 800, who made close to $2 trillion during the pandemic, would pay a tax, their fair share, every year just like nurses and firefighters." The tax would look at two components. Tradable assets such as stocks and bonds would be taxed on what are called "unrealized" gains, which is the annual increase in the value of a stock even if the person hasn't sold it. The proposal also includes non-tradable assets, such as real estate, which owners would have to pay an additional tax on when they sell the asset. Wyden said Tuesday he's still working through some of the details with his colleagues. The proposal comes as Democrats are looking for ways to pay for their spending package, which they have pledged will not be funded by borrowing. All 50 Democratic Senators in the split Senate would need to sign off on the plan, which is being passed through a budget process known as reconciliation. That process allows Democrats to move forward without 60 Senate votes, as no Republicans are likely to vote yes. "I've always felt that success was giving everybody in America the chance to get ahead and what we're dealing with is flagrant loopholes in the tax code," Wyden said. Democrats are working to come up with other options to pay for their plan since Democratic Senator Kyrsten Sinema of Arizona opposes lifting the corporate tax rate from 21% and raising taxes on the wealthiest Americans. Democratic Senator Joe Manchin of West Virginia has signaled he is open to a billionaires tax, but others remain skeptical. House Ways and Means Chairman Richard Neal of Massachusetts has been in talks with Wyden on the proposal. Neal said he does not know if it will . . . read the full article here.
Keywords: pose, billionaires, minimum, income, democrats, challenges, social, billion, wyden, tax, pay, proposal, spending, ways, search
DATE: Sunday, annual, Tuesday, 10 years, every year
NORP: Americans, Democrats, Democratic, Republicans
MONEY: $1 billion, $100 million, $3.5 trillion, $200 to $250 billion, close to $2 trillion, more than $1 billion, as much as $2 trillion, between $300 billion and $400 billion
PERCENT: 15%, 21%
CARDINAL: 50, 60, two, roughly 200, roughly 700, less than 800, at least three