Congressman Dan Goldman Pushes for Billionaire Tax

‘Billionaire Minimum Tax Act’ Would Require Households Worth Over $100 Million Pay Annual Minimum 20 Percent Tax Rate on Full Income
 
Ensure the Ultra-Wealthy Pay at Least a Base Level of Taxes Every Year
 
Would Raise an Estimated $361 Billion Over 10 Years

Washington, DC – Congressman Dan Goldman (NY-10) today announced he is cosponsoring the Billionaire Minimum Income Tax Act. The Billionaire Minimum Income Tax Act would require households worth over $100 million to pay an annual minimum 20 percent tax rate on their full income, including regular income along with realized and unrealized gains and prevent the wealthiest Americans from escaping federal income taxes or paying lower tax rates than working Americans. The minimum tax would apply only to the extremely few households with a net worth over $100 million, and not affect the 99.99 percent of households with a net worth below $100 million. The tax is projected to raise $361 billion over 10 years.
 
“At a time of record wealth inequality, the wealthiest among us must help to provide more access for others to pursue the American dream that they have benefited so much from,” Congressman Dan Goldman said. “I’m proud to cosponsor the Billionaire Minimum Income Tax as a long-overdue piece of legislation that will level the playing field, incentivize investment in the economy, and expand opportunities for underserved communities.”
 
Under the current tax code, workers are taxed on their wages automatically, while billionaires can earn millions of dollars from growing investments year after year without paying a dime in taxes. It is estimated that America’s more than 700 billionaires typically pay just 8 percent in taxes on their realized and unrealized income. Billionaires such as Jeff Bezos and Elon Musk paid no federal income taxes at all in some years.
 
The ultra-wealthy pay very little taxes because their affluence is derived primarily from the increasing value of their assets rather than wages, interest, and pensions. This growth in wealth is not defined as taxable income until their assets are sold, which allows billionaires to make hundreds of millions of tax-free dollars a year by avoiding a tax-realizing event.
 
If they need money, they can borrow against their assets. Since the loan is not considered income, it allows the ultra-wealthy to reap the value of their growing assets without ever triggering a tax bill. Families can avoid capital gains taxes forever by holding onto assets without selling, borrowing against them, and using the stepped-up basis loophole at inheritance.
 
The Billionaire Minimum Income Tax will ensure that the ultra-wealthy pay at least a base level of taxes every year, just like other Americans.  
 
The Billionaire Minimum Income Tax is an important way to level the playing field. It ensures ultra-high net worth individuals pay income taxes each year as their assets rise. It also ends the perverse incentive in the current tax code for ultra-wealthy individuals to inefficiently lock in their capital in perpetuity, forever holding onto their assets to avoid triggering a tax bill. If the tax code treated the ultra-wealthy’s realized and unrealized gains equally, it would restore the incentive to reinvest in more economically productive investments.

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