According to news on October 27, the plan to levy a wealth tax was proposed by the chairman of the Senate Finance Committee Wyden. This is the result of weeks of negotiations between the Democrats on how to find a way to increase taxes on the rich that almost all Democrats support.
Wyden’s office said that even if the plan is passed (hundreds of billions of dollars in revenue through the plan), it will depend on whether it can withstand potential court challenges and loopholes that the IRS may find.
This tax will apply to taxpayers whose asset value is not less than US$1 billion for three consecutive years or whose income is not less than US$100 million for three consecutive years. According to the outline of the plan, these thresholds mean that approximately 700 people will be affected.