Senator Baldwin Introduces Bill to Ensure Billionaires Pay Their Fair Share in Taxes
WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) joined a group of her colleagues in introducing the Billionaires Income Tax Act, legislation to close loopholes in the tax code that let the wealthiest Americans avoid paying their fair share in taxes.
"Plain and simple, the system is rigged to benefit the ultra-rich and it’s time we level the playing field,” said Senator Baldwin. “I am proud to join my colleagues in introducing legislation to finally make sure that billionaires at the top pay their fair share and bring some fairness to our tax system.”
The Billionaires Income Tax Act would, for the first time, end one of the most prominent, legal ways that billionaires avoid paying taxes known as “buy, borrow, die.” Buy, borrow, die works as follows:
- Buy: A billionaire uses their wealth to buy assets that appreciate in value (real estate, stocks, artwork, collectibles).
- Borrow: The individual then borrows against that asset’s growing, untaxed value to fund their extravagant lifestyle, purchasing yachts, luxurious vacations, expensive art deals, and more. All the while, the assets continue to go up in value without paying a dime in tax.
- Die: When the individual dies, their assets are passed to their children or other beneficiaries, often entirely tax-free, and the cycle continues.
The proposal would only apply to taxpayers with more than $1 billion in assets, or more than $100 million in income for three consecutive years.
The legislation was led by U.S. Senator Ron Wyden (D-OR) and also co-sponsored by Senators Debbie Stabenow (D-MI), Bob Casey (D-PA), Sheldon Whitehouse (D-RI), Elizabeth Warren (D-MA), Brian Schatz (D-HI), Mazie Hirono (D-HI), Sherrod Brown (D-OH), Bernie Sanders (I-VT), Jeff Merkley (D-OR), John Fetterman (D-PA), Tina Smith (D-MN), Peter Welch (D-VT), Jack Reed (D-RI), and Ed Markey (D-MA).
A one-pager of the legislation is available here and a section-by-section summary of the legislation is available here.
Full text of the legislation is available here.
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