This week, Congressman Jamaal Bowman, Ed.D. (NY-16) introduced legislation that will would tax the unrealized capital gains of the top 0.01 percent. Titled the “Babies Over Billionaires Act,” this legislation will affect the ultra-wealthy with over $100 million in assets.
The introduced tax code for the nearly 700 billionaires would raise $1 trillion over ten years, according to a press release.
“Since the pandemic began, everyday people have borne the brunt of negative public health and economic outcomes,” Rep. Bowman said. “Meanwhile, American billionaires have shamelessly increased their collective wealth by more than $2 trillion. As a society it’s time we center the people’s needs who account for most of the American population, instead of roughly 700 billionaires who have swindled us all.”
According to Rep. Brown’s website, the Babies Over Billionaires Act will:
- Annually tax 30% of unrealized gains of ultra-millionaires from publicly traded capital assets at the prevailing long-term capital gains rate;
- Tax 50% of unrealized gains of private capital assets at the prevailing long-term capital gains rate every 5 years;
- Mandate the IRS annually audit filers reporting in excess of $100 million in assets to crack down on rampant tax abuse by the wealthy.
- Invest the revenue raised by this tax in programs run by the Department of Education and HHS that support families and children.
“This bill would direct more resources towards the IRS to audit and tax people whose income requires more than reviewing just a W-2 or 1099 form, people like billionaires,” Rep. Bowman said. “By auditing and taxing the 700 richest people in our country, the wealthy will finally pay their fair share. As a result more taxpayers funds would be made available for children-centered programs in the U.S. Department of Education and the U.S. Department of Health and Human Services. We must invest in our youth’s future and critical social safety nets—the wealthy are more than capable of funding that effort!”
Co-leaders of the bill include Representatives Bill Pascrell; Danny K. Davis; and Susan Wild, while the co-sponsors include Representatives Eleanor Holmes Norton, and Bonnie Watson Coleman.