WASHINGTON D.C. — U.S. Sen.Martin Heinrich, D-N.M., cosponsored the Billionaires Income Tax Act, legislation to prevent the wealthiest Americans from escaping federal income taxes or paying lower tax rates than ordinary Americans.
“Hardworking New Mexicans shouldn’t be paying more in taxes than billionaires,” Heinrich said. “The basic premise is this: If you can afford a yacht, then you can afford to pay taxes like the rest of us. It’s past time the ultrawealthy start paying their fair share. This legislation will close key tax loopholes that’s exploited by billionaires and help build a stronger economy that puts working families first.”
The Billionaires Income Tax Act would, for the first time, end one of the most prominent, legal ways that billionaires avoid paying taxes, known as “buy, borrow, die.” Buy, borrow, die works as follows:
Buy: A billionaire uses their wealth to buy assets that appreciate in value (real estate, stocks, artwork, collectibles).
Borrow: The individual then borrows against that asset’s growing, untaxed value to fund their extravagant lifestyle, purchasing yachts, luxurious vacations, expensive art, and more. All the while, the assets continue to go up in value without paying a dime in tax.
Die: When the individual dies, their assets are passed to their children or other beneficiaries, often entirely tax-free, and the cycle continues.
The proposal would only apply to taxpayers with more than $1 billion in assets, or more than $100 million in income for three consecutive years.
The legislation is led by U.S. Senator Ron Wyden, D-Ore. Alongside Heinrich, the bill is cosponsored by U.S. Sens. Debbie Stabenow, D-Mich., Bob Casey, D-Pa., Sheldon Whitehouse, D-R.I., Elizabeth Warren, D-Mass., Brian Schatz, D-Hawaii, Mazie Hirono, D-Hawaii, Tammy Baldwin, D-Wis., Sherrod Brown, D-Ohio, Bernie Sanders, I-Vt., Jeff Merkley, D-Ore., John Fetterman, D-Pa., Tina Smith, D-Minn., Peter Welch, D-Vt., Jack Reed, D-R.I., Ed Markey, D-Mass., Ben Ray Luján, D-N.M., Laphonza Butler, D-Calif., and Tammy Duckworth, D-Ill..
By Sen. Martin Heinrich
