Billionaires Income Tax Act

The Billionaires Income Tax Act (HR 5427) would require high-net-worth individuals with annual income over $100 million or assets over $1 billion to pay taxes annually on investment gains rather than deferring taxes until assets are sold. It eliminates the "buy, borrow, die" tax strategy by implementing annual mark-to-market taxation of investment assets and closing loopholes that allow tax-free transfers of appreciated assets to heirs. The bill applies to individuals meeting specific income or asset thresholds, as well as applicable trusts and entities with significant ownership interests, with provisions taking effect for taxable years beginning after December 31, 2025.