“We have a historic opportunity with the Billionaires Income Tax to restore fairness in our tax code, and fund critical investments in American families,” said Wyden. “The Billionaires Income Tax would ensure billionaires pay tax each year, just like working Americans.” It would be a fundamental change in how the tax system operates, and open up a new revenue stream for the Treasury — one some liberals hope will eventually be extended to millionaires as well. But it’s sure to be controversial. Many House Democrats are already balking at the proposal, preferring a slate of more traditional tax increases approved last month by the Ways and Means Committee. And the proposal, should it pass, would almost certainly be challenged in court. The Constitution restricts so-called direct taxes, an antiquated term referring to levies imposed directly on someone that can’t be imposed on someone else. There’s a big exception for income taxes, thanks to the 16th Amendment, which allows Congress to tax earnings. The question with the billionaires tax will be whether it counts as an income tax. The plan comes after Sen. Kyrsten Sinema (D-Ariz.) balked at fellow Democrats’ plans to finance their spending package with more traditional hikes on individuals and c . . . read the full article here.
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