Senator Coons sponsors Billionaires Income Tax Act to address tax fairness, reduce nation’s deficits

WILMINGTON – U.S. Senator Chris Coons (D-Del.) announced he would cosponsor the Billionaires Income Tax Act, legislation that would require the wealthiest Americans to pay taxes on income generated by their assets, creating more than $500 billion in new federal tax revenue over 10 years. Senator Coons’ support for the legislation comes following news that the national debt has surpassed $40 trillion for the first time in American history, underscoring the urgent need for Congress to take steps to address the nation’s long-term fiscal challenges. The national debt reached $40 trillion earlier this month, adding more than $1 trillion in debt in just five months, according to the U.S. Treasury Department . The federal government is spending more and more tax dollars to pay interest on the nation’s growing debt, putting increasing pressure on the federal budget and limiting the resources available for investments that strengthen the economy and programs that Americans rely on. The national debt has ballooned as tax revenues have fallen in recent decades – repeated Republican tax cuts for wealthy Americans have caused tax revenue as a percentage of GDP to decline 14% since 2000, according to the Federal Reserve . “Our national debt is a crisis that we cannot afford to leave to our children, and the problem is driven in large part by the fact that too many Americans aren’t paying their fair share. Right now, some of the wealthiest Americans can defer taxes on enormous gains indefinitely, while middle-class Delawareans see taxes taken out of every single paycheck. This legislation requires the very wealthiest Americans to pay taxes on their gains and slashes our deficit while leaving tax rates the same for nearly every American,” said Senator Coons . “As interest costs put growing pressure on our budget, we need to reduce our deficits and protect the investments that keep our economy strong.” The Billionaires Income Tax Act would apply to fewer than 1,000 of the wealthiest taxpayers in a country of more than 342 million people. Under the proposal, taxpayers with more than $100 million in annual income or more than $1 billion in assets for three consecutive years would be subject to the tax. By taxing the unrealized capital gains of these individuals, the proposal would raise more than $500 billion over ten years, providing an opportunity to strengthen the nation’s fiscal position and shore up funding for our military, national parks, affordable housing, and many other vital programs. The Billionaires Income Tax Act was introduced by Senator Ron Wyden (D-Ore.). Congressman Steve Cohen (D-Tenn.) and Congressman Don Beyer (D-Va.) introduced companion legislation in the House. The legislation has more than 20 Senate cosponsors. You can find the bill text here .