In Senate Committee·Last action 222 days ago

S.2845 would tax many billionaires yearly on gains and curb tax deferral

Officially: Billionaires Income Tax Act

The bill sets up a special tax regime for ultra-wealthy taxpayers, large trusts, and some related entities. It would tax many tradable assets every year based on market value, tighten rules on transfers and tax shelters, and add new reporting and penalty rules.

Where it stands

Sitting in Finance

No vote scheduled. Constituent contact is what moves bills out of committee.

What this bill actually does

Defines "applicable taxpayers" mainly as people with more than $100 million in applicable adjusted gross income in each of three years or more than $1 billion in covered assets, with separate but related thresholds for large trusts and some foreign persons.
Requires applicable taxpayers to mark tradable covered assets to market at the end of each tax year and report gains or losses as if the assets were sold for fair market value.
Treats many transfers of nontradable covered assets, including some corporate reorganizations and like-kind exchanges, as taxable, and adds a "deferral recapture amount" that works like an interest charge on tax tied to earlier untaxed appreciation.

↓ Why your message matters here

This bill is sitting in committee with no scheduled vote — which means a small number of constituent messages can decide whether it moves forward or quietly dies.

The debate

What people are saying about this bill

✓Arguments in support

Ensures Fairness: Supporters argue that the bill makes sure billionaires pay taxes on their wealth increases, just like workers do on their income.
Closes Loopholes: It targets strategies that allow the ultra-wealthy to defer taxes indefinitely, ensuring they contribute their fair share.
Reduces Inequality: By addressing the disparity in tax rates between billionaires and middle-class families, the bill aims to reduce income inequality.

✕Arguments against

Potential Economic Impact: Critics may argue that taxing unrealized gains could discourage investment and economic growth.
Administrative Burden: There could be concerns about the complexity and cost of implementing and enforcing the new tax rules.
Risk of Wealth Flight: Opponents might worry that high taxes could drive billionaires to move their wealth or themselves to other countries.

Where this bill is in the process

Legislative timeline

✓

Introduced

Introduced in Senate

—

●

Senate Committee

Under Senate committee consideration

Latest: Read twice and referred to the Committee on Finance. (9/17/2025)

SEP 17

○

Senate Floor Vote

Voted on by Senate

—

○

Passed Senate

Approved by Senate

—

○

House Review

Sent to House for consideration

—

○

Passed Both Chambers

Approved by both House and Senate

—

○

Signed into Law

Signed by the President

—

For more detail

Menu

S.2845 would tax many billionaires yearly on gains and curb tax deferral

What people are saying about this bill

Legislative timeline

Read deeper