A new annual tax proposal on billionaires’ unrealized capital gains is likely to be included to assist pay for the huge social policy and climate plan lawmakers hope to finalize this week.
- House Speaker, Nancy Pelosi state that there is a possibility of a wealth tax, indicating that Senate Democrats were working on their plan that bears a strong resemblance to a wealth tax.
- The proposed plan under consideration from Senate Finance Committee Chair Ron Wyden would impose an annual tax on unrealized capital gains on liquid assets that are held by billionaires.
- Ms. Yellen stated that she would not call it a wealth tax, but it would help to obtain capital gains that largely contribute to the incomes of the wealthiest people and avoid taxation until realized.
- Groups including the National Taxpayers Union have opposed the taxation on billionaires’ unrealized capital gains, stating it would add more bureaucracy to the tax system and new burdens on investors.
The tax plan is expected to affect people with $1 billion in assets and a $100 million income for three straight years.
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