Congressmen Cohen and Beyer and Senator Wyden Introduce the Billionaire Income Tax Act

Congressmen Steve Cohen (TN-9) and Don Beyer (VA-8) and Senator Ron Wyden of Oregon today introduced bicameral Billionaire Income Tax Act bills in an effort to establish a level of fairness in federal taxation and prevent millionaires and billionaires (and one prospective trillionaire) from avoiding significant liability. The measure would tax wealth gains as they occur.

Congressman Cohen made the following statement:

"The ultrawealthy pay very low tax rates because their affluence derives primarily from the soaring value of their assets. Our current tax code lets billionaires avoid taxes on gains unless and until they sell their assets. So while working families pay taxes on each and every paycheck or pension payment, the ultrawealthy can make hundreds of millions of tax-free dollars a year. Instead of all their billions going to buying superyachts, rocket ships, professional sports teams, and Twitter, it is time that billionaires pay at least a minimal level in taxes like everyone else. There is overwhelming public support for this proposal, which will close loopholes in our tax code and ensure billionaires pay a fairer share. It's well past time to make our tax code fair. I haven't asked him, but it looks like Pope Leo would endorse the Billionaire Income Tax Act. He recently did an interview with a biographer and excerpts were released on Sunday. Speaking of societal polarization, he said it is in part caused by income inequality. One factor, he said, is 'the continuously wider gap between the income levels of the working class and the money that the wealthiest receive. For example, CEOs that 60 years ago might have been making four to six times more than what the workers are receiving, the last figure I saw, it's 600 times more than what average workers are receiving. Yesterday the news that Elon Musk is going to be the first trillionaire in the world. What does that mean and what's that about? If that is the only thing that has value anymore, then we're in big trouble.' I agree with Pope Leo and hope our bill will have a significant effect on what everyone seems to acknowledge is a huge and growing problem."

Congressman Beyer made the following statement:

"The Billionaires Income Tax Act is a simple policy that would prevent the ultra-wealthy from paying a lower tax rate than working families - a crucial and necessary step toward rectifying the shortcomings of the failed trickle-down economics approach. Republicans continue to cut taxes for the richest among us while making it harder for working people to make ends meet. Our bill instead champions a fair tax policy that not only places our nation on a more robust fiscal foundation but also promotes fairness in the tax code by requiring the super-rich to pay their share, reducing inequality, and funding services the American people depend on."

Senator Wyden made the following statement:

"While people like nurses and firefighters pay taxes straight out of every paycheck, there's a thicket of little-known tricks and accounting rules that allow billionaires to opt out of paying a fair share of tax on the income they enjoy. Billionaires and Republicans are going to offer up the same set of trickle-down arguments to pretend this proposal would bring about the end of western civilization. The only time you hear billionaires claim they can't scrounge together any cash is when somebody brings up taxes, and odds are a lot of these mega-wealthy individuals are crying poverty from their yachts and private islands. This is a carefully designed proposal that draws on accounting methods already used in the tax code and raises revenue without increasing any tax rates."

The Billionaires Income Tax Act would:

• Require annual taxation of non-tradable assets like stocks, regardless of sale;
• Apply a fair, interest-like charge on deferred gains from non-tradable assets like real estate when sold;
• Eliminate loopholes that let billionaires avoid paying taxes on wealth passed down to heirs;
• And include robust anti-abuse rules to prevent avoidance and gamesmanship.
• It would raise hundreds of billions of dollars to shore up programs like Social Security and Medicare-all without touching working-class Americans.

Versions of the measure in previous Congresses have been endorsed by The measure has been endorsed by: AFL-CIO; Alliance for Retired Americans; American Family Voices; American Federation of Government Employees (AFGE); American Federation of State, County & Municipal Employees (AFSCME); American Federation of Teachers (AFT); American-Arab Anti-Discrimination Committee (ADC); Americans for Tax Fairness; Asian Pacific American Labor Alliance, AFL-CIO; Blue Haven Initiative; Center for LGBTQ Economic Advancement & Research; Center for Popular Democracy; Coalition on Human Needs; CommonDefense.us; Communications Workers of America (CWA); Demos; Economic Policy Institute; Friends Committee on National Legislation; Friends of the Earth U.S.; Greenpeace USA; Groundwork Action; Healthcare for America Now (HCAN); Indivisible; Institute for Policy Studies -Program on Inequality; Institute on Taxation and Economic Policy (ITEP); International Brotherhood of Teamsters; International Federation of Professional and Technical Engineers (IFPTE); Islamic Circle of North America Council for Social Justice; Main Street Alliance; MoveOn; National Education Association (NEA); National Employment Law Project; National Women's Law Center; NETWORK Lobby for Catholic Social Justice; Other98; Our Revolution; Oxfam America; Patriotic Millionaires; People's Action; Progressive Change Campaign Committee; Prosperity Now; Public Citizen; Responsible Wealth; RESULTS; RootsAction.org; Service Employees International Union (SEIU); Sojourners; Strong Economy for All; Tax Justice Network USA; Tax the Ultra-Rich NOW!; UltraViolet; United Church of Christ Justice and Local Church Ministries; United for a Fair Economy; Unrig Our Economy; Voices For Progress; Working America.