Billionaires Income Tax Act

Key Provisions

• Requires individuals with over $100 million in income or $1 billion in assets to pay annual taxes on the increase in value of their tradable investments.
• Adds an interest charge to deferred taxes on nontradable assets when they are sold or transferred by applicable taxpayers.
• Treats gifts, inheritances, and transfers of covered assets into trusts by applicable taxpayers as if they were sold, triggering tax.
• Ends tax deferral for certain high-value deferred compensation for applicable taxpayers, adding an interest charge when the compensation is paid.
• Changes how certain private placement life insurance and annuity contracts are taxed for applicable taxpayers, including ending the tax exclusion for death benefits.