Sen. Ron Wyden (D-OR) and other Democrats introduced a proposal on Thursday that would tax the unrealized capital gains of billionaires and very high earners.
Wyden has spearheaded an effort to make a mark-to-market proposal law for years, and the new legislation is the latest iteration of that effort. The plan would affect those with net worths of over $1 billion. It would also apply to high earners who made more than $100 million in three consecutive years.
If it were to become law, the plan would be a massive departure from how the United States handles federal tax policy, as it would apply levies on the unrealized gains of assets such as stocks and bonds for the wealthiest people.
The bill targets legal investment and spending strategies that billionaires use to shield themselves from tax liability. Wyden’s office said the legislation goes after a strategy dubbed “buy, borrow, die.” Wealthy taxpayers can invest in appreciable assets such as stocks and real estate and then borrow against the untaxed appreciated value of those assets to fund other purchases.