Bill > HR5427

This bill, known as the Billionaires Income Tax Act, aims to fundamentally change how high-net-worth individuals and entities are taxed by eliminating their ability to defer tax payments indefinitely. The bill introduces a comprehensive set of provisions that would require billionaires and high-income taxpayers to pay taxes annually on their assets, similar to how wage earners pay taxes on their income. Key provisions include implementing a mark-to-market taxation system for tradable assets, requiring recognition of gains and losses on assets held at the end of each tax year, and closing loopholes that allow wealthy individuals to avoid taxation through strategies like "buy, borrow, die." The bill would apply to individuals with adjusted gross income over $100 million or assets exceeding $1 billion, and would impact various financial instruments including deferred compensation, life insurance contracts, and investments in opportunity funds. The changes would be phased in, with most provisions taking effect for tax years beginning after December 31, 2025, and are designed to ensure that extremely wealthy taxpayers cannot indefinitely defer or avoid paying taxes on their appreciating assets and income.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/5427/all-info