Billionaires Income Tax Act

This bill aims to close tax loopholes that allow billionaires to avoid paying taxes by using the "buy, borrow, die" strategy—where wealthy individuals purchase assets, borrow against their increasing value tax-free, and pass them to heirs who receive a stepped-up tax basis that eliminates capital gains taxes. The legislation would modify more than 30 provisions in the Internal Revenue Code to require billionaires to pay taxes on their wealth annually rather than deferring taxation indefinitely. This represents a significant shift in how the wealthiest Americans are taxed, moving from a realization-based system (where taxes are paid only when assets are sold) to a system requiring annual tax payments on wealth accumulation.