Taxes: New Annual Tax for Billionaires
A senate committee must act next: committee consideration.
While the bill has strong support from Senate Democrats and is led by the Finance Committee Chair, it faces a very difficult path in a divided Congress where tax increases are highly partisan.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
The bill removes the tax break under Section 1202 for gains on small business stock, but only for people who are already billionaires or ultra high earners, and only for stock acquired on or after September 17, 2025. Ordinary small business owners and most investors keep the existing exclusion. The effect falls on a very small number of ultra wealthy shareholders in qualified small businesses.
“This subsection shall not apply to any gain from the sale or exchange of qualified small business stock by an applicable taxpayer (as defined in section 495).”
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Senator Ron Wyden and House Democrats reintroduced the Billionaires Income Tax Act, a bicameral proposal targeting unrealized gains of the ultra-wealthy. The bill aims to close the "buy, borrow, die" loophole for those with over $1 billion in assets or $100 million in annual income.
Senate Finance Ranking Member Ron Wyden and Reps. Don Beyer and Steve Cohen unveiled a bicameral version of the Billionaires Income Tax Act. The move comes as Democrats look for revenue to fund social programs while facing a looming government shutdown and debates over the 2025 tax cliff.
As states like California and Washington propose their own wealth taxes, federal lawmakers continue to push the Billionaires Income Tax Act. The bill targets individuals with more than $1 billion in assets, reflecting a growing divide in how political parties approach wealth concentration.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Billionaires Income Tax Act
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