The Billionaires Income Tax Act would change federal tax rules for people who meet high income or asset tests for three years in a row. The tests include adjusted gross income above $100 million or covered assets worth more than $1 billion; lower thresholds apply to married people filing separately. The bill would tax gains on certain tradable assets each year, even if they were not sold. It would also tax gains on some transfers of nontradable assets and add interest charges for deferred taxes. Other sections change rules for trusts, deferred compensation, certain life insurance and annuity contracts, small-business stock, and qualified opportunity funds. Most changes would apply to tax years beginning after December 31, 2025.
The bill’s main tax rules apply to people who meet its income or asset tests, as well as certain trusts and entities connected to them. If you do not fall within those groups, the text does not describe a direct change to your taxes. The bill would also create reporting duties for certain entities and payment providers.
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The bill’s stated purpose is to require billionaires to pay taxes annually and limit tax deferral strategies, including borrowing against assets and passing appreciated assets to heirs without recognizing gains.
No publicly available information.