Contact Congress about S. 2845: 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.

Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.

Billionaires Income Tax Act is a Senate bill in committee. The latest recorded action: Read twice and referred to the Committee on Finance.

Latest action on S. 2845: Read twice and referred to the Committee on Finance.

Who this affects: The bill is aimed at a narrow group of ultra-wealthy taxpayers, but its effects would spread to the businesses, trusts, estates, insurers, compensation payers, and family structures connected to them. It would mostly matter to people near or above the bill's income and asset thresholds, plus entities that must value assets, track gains, and file new reports because of those owners. It could also affect heirs, business partners, and investment vehicles tied to those taxpayers, even though the bill does not directly change ordinary income tax rules for most people.

Why this matters: This bill would make a major change in how the federal government taxes the wealthiest taxpayers, especially people whose wealth sits in assets that rise in value over time. Under current law, tax is often delayed until an asset is sold, but this bill would force many covered taxpayers to pay sooner and would add extra charges meant to claw back the value of past deferral. That could raise significant revenue from a small group without directly changing ordinary taxpayers' rates, but it would also create complicated valuation, reporting, and planning issues. The real-world effects on investment choices, asset sales, business structures, and family planning would depend in part on future Treasury regulations and how taxpayers respond.

Key provisions in S. 2845

• 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.
• Treats gifts, bequests, and transfers in trust by applicable taxpayers or their entities as sales at fair market value, with limited exceptions for certain transfers to spouses, charities, and specified trust types.
• Creates detailed rules for pass-through "applicable entities," such as partnerships, S corporations, and similar entities, to report gains, losses, and holding periods to major owners who are applicable taxpayers, and lets some entities elect to be treated as taxpayers for mark-to-market events.

How Modern Action helps you take action on S. 2845

You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.

Questions people ask about S. 2845

What is S. 2845?

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.

How do I support or oppose S. 2845?

Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.

Who should I contact about S. 2845?

Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.

Can Modern Action explain S. 2845 before I act?

Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.