John,
The House Ways and Means Committee just released the details about how it plans on raising the $3.5 trillion to pay for President Biden’s Build Back Better plan. It’s a good start―it raises $2.2 trillion from the rich and corporations―but it needs to be significantly strengthened to make sure they pay more of their fair share.
One fix we’re fighting for is to close the Billionaires Loophole―also known as the “stepped up basis” loophole―that allows a lifetime of capital gains to go forever untaxed.
Read Frank’s email below for more details, then click here to write to your members of Congress today and demand they make billionaires pay their fair share in the budget reconciliation package.
Unless we close the Billionaires Loophole, most ultra-wealthy families probably won’t pay any more in taxes in the ten-year $3.5 trillion budget reconciliation package.
Thank you,
Sarah Christopherson
Legislative and Policy Director
Americans for Tax Fairness
-- Frank's email --
John,
Right now, our new digital ad is driving calls into congressional offices, demanding Congress close the Billionaires Loophole through budget reconciliation. This is how we’ll get President Biden’s $3.5 trillion of investments benefiting working families—by raising taxes on the rich and corporations.
This is crunch time! Please send a message to your U.S. senators and representative today demanding Congress close the Billionaires Loophole through legislation they’ll soon vote on. Click here to take action.
Under current law, income from investments, such as stocks or a business, goes completely tax free, indefinitely, unless an asset is sold. If a billionaire never sells (and they almost never need to because they can take out cheap loans with their assets as collateral), they owe no tax.
The Billionaires Loophole (aka “stepped-up basis”) means that all of the income tax that would be due on their gains simply disappears when they die. This allows millionaires and billionaires who earn their income through wealth, instead of through a traditional paycheck, to pay virtually nothing in federal income taxes. Ever.
That’s how Jeff Bezos paid just 1% in taxes on $99 billion in wealth growth between 2014 – 2018.[1] And when he dies, that wealth will never be subject to capital gains taxes.
President Biden wants to close this Billionaires Loophole and tax wealth more like work, which would raise $325 billion over ten years. Closing this loophole would not affect couples with wealth growth of $2.5 million a year, including the increased value of their house.
Wall Street lobbyists are fighting to maintain this outrageous tax loophole for the super-wealthy, arguing that it impacts family farms and small businesses. But, in reality, as long as a farm or small business continues to be owned and operated by family members, they are able to defer taxes indefinitely.
We have just a few days left before congressional committees submit their tax plans to be voted on this month. We’re demanding Congress close the Billionaires Loophole through budget reconciliation. Click here to send a message to your U.S. senators and representative today.
Every dollar not raised from the rich and corporations is a dollar not invested in working families and our future.
Thank you,
Frank Clemente
Executive Director
Americans for Tax Fairness
[1] "The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax," ProPublica, June 8, 2021
