REUTERS/Carlos BarriaWASHINGTON (Reuters) - U.S. billionaires would pay tax on unrealized gains from their assets to help finance President Joe Biden’s emerging social-policy and climate-change legislation, according to a proposal unveiled on Wednesday by the top Senate Democrat for tax policy.
The so-called billionaires tax, announced by Senate Finance Committee Chairman Ron Wyden, is part of a two-pronged legislative strategy that also includes a proposed 15% corporate minimum tax on the most profitable U.S. corporations, which was unveiled on Tuesday.
The White House backs the corporate minimum tax, which would dovetail with a global corporate minimum tax recently agreed by 136 countries and aimed at corporations that pay little or no tax by gaming the international tax system.
But the billionaires tax faces potential opposition from Democrats in the House of Representatives, who favor straightforward hikes in tax rates for companies and the wealthy as a way to fund the Biden agenda.
The billionaires tax, which would take effect for the 2022 tax year, would affect roughly 700 taxpayers with over $1 billion in assets or $100 million in annual income for three consecutive years, according to a statement.
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