Many people believe our nation’s growing income inequality and our diminishing middle class are fundamental problems facing our society. For the past 40 years or more, America’s per capita Gross Domestic Product (GDP) has steadily grown because our workforce has increasingly produced more goods and services with the same number of workers. However, workers have not been rewarded for this increased productivity. In 2001, wages accounted for about 49% of GDP but this number is now about 43% following a steep and steady decline. Furthermore, it has recently been revealed that 60 Fortune 500 companies paid no federal income taxes on $79 billion in profits in 2018. Rather, they received a combined $4.3 billion in rebates instead. These companies included Amazon, Netflix, Chevron, Delta, GM, Goodyear, Halliburton, IBM, Salesforce, U.S. Steel and Whirlpool, among others. The wealthiest among us, those making more than $400,000 a year, have captured nearly all the economic gains during these past 3-plus decades.

Income tax brackets for individuals also apply to corporations. Although allowed more deductions, a corporation’s gross income is subject to the same federal tax rates as individuals. During President Eisenhower’s administration, the marginal tax rate for Americans in the top income tax bracket was 92% - meaning the wealthiest Americans paid our treasury 92 cents of each dollar they earned. Under Carter the upper tax rate was cut to 70%. Clinton slashed it to 39.6% and Trump took it down to 37% which is where it is today. The upper income tax bracket today for married couples filing jointly is reserved for annual incomes in excess of $751,600.

Pending Legislation: S.2845 - Billionaires Income Tax Act
Sponsor: Sen. Ron Wyden (OR)
Status: Senate Committee on Finance
Chair: Sen. Mike Crapo (ID)

• I oppose reforming current upper income tax rate policy and wish to donate resources to the campaign committee of Leader John Thune (SD).
• I support requiring individuals with over $100 million in annual income or over $1 billion in assets for three consecutive years to pay taxes annually on their investment gains, including unrealized gains by:
  
  1.) Requiring "applicable taxpayers" to recognize gains and losses on their publicly traded assets (e.g., stocks) annually, as if they were sold at fair market value at the end of the year. This means tax would be owed on unrealized gains.
  
  2.) Implementing a deferred tax with interest on the sale or transfer of non-tradable assets.
  
  3.) Ending the strategy where billionaires indefinitely defer taxes by borrowing against their appreciated assets and passing them to heirs with a "step-up in basis" (eliminating the capital gains tax liability upon inheritance).
  
  4.) Changing over 30 tax provisions, including removing the Adjusted Gross Income (AGI) limit for the Net Investment Income Tax (NIIT) for applicable taxpayers and repealing exclusions for certain small business stock gains.
  
  5.) Including robust anti-abuse rules and new reporting requirements for trusts and pass-through entities to prevent tax avoidance and evasion.
  
  And wish to donate resources to the campaign committee of Sen. Mike Crapo (ID) and/or to an advocate group currently working with this issue.