On Wednesday, legislation aimed at preventing billionaires from escaping their fair share of taxes was introduced into Congress.
U.S. Reps. Steve Cohen (D-Tenn.) and Don Beyer (D-Va.) announced Wednesday they had joined 60 other law makers to reintroduce the Billionaire Minimum Income Tax Act which would prevent the wealthiest of Americans from escaping federal income taxes or paying lower tax rates than the rest of the country. The legislation was originally proposed by President joe Biden in this year’s budget who later called on Congress to act on it.
“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,” Cohen said. “The minimum tax would apply only to the extremely few households with a net worth over $100 million. The full 25 percent rate would only apply to those with net worth over $200 million. The bill would not raise taxes on ultra-wealthy households that already pay at least 25 percent on their full income, nor would it affect 99.99 percent of households with a net worth below $100 million. Our goal is tax fairness and it is immensely popular with the American public.”
The legislation is identical to legislation introduced during the last Congressional session, albeit with a number of technical revisions. The Congressmen said the bill was drafted in coordination with the White House and the U.S. Treasury Department. It would require households work more than $100 million to pay an annual minimum 25 percent tax rate on their full income, including regular income as well as realized and unrealized net gains.
Congressman Beyer made the following statement:
“The Billionaire Minimum Income Tax Act is a simple policy that would prevent billionaires 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,” Beyer said. “Republicans cut taxes for the richest among us while proposing higher taxes for working people. Our bill instead champions a fair tax policy that not only places our nation on a more robust fiscal foundation but also promotes equity in the tax code by requiring the super-rich to pay their fair share, reducing inequality, and funding services the American people depend on.”
The bill is supported by a number of organizations including Americans for Tax Fairness, Patriotic Millionaires, the AFL-CIO, CommonDefense.us, the Institute on Taxation and Economic Policy (ITEP), Voices For Progress, and Working America.
“Kudos to Reps. Cohen, Beyer and all their co-sponsors for introducing President Biden’s Billionaire Minimum Income Tax (BMIT),” David Kass, executive director, Americans for Tax Fairness, said. “The BMIT will finally end the scandal of the ultra-rich—billionaire households and those worth at least $100 million (centi-millionaires)—paying little or no federal income tax despite their staggering fortunes. Recent research by Americans for Tax Fairness estimates that this tiny handful of the super-wealthy holds a breathtaking $8.5 trillion in unrealized capital gains that without the BMIT or similar legislation might never be taxed.”