Congressional Democrats are reviving several key tax proposals focused on the nation's wealthiest individuals to define party priorities ahead of the new session. Sen. Ron Wyden is steering the Senate Finance Committee to focus on ensuring billionaires pay their fair share and closing tax loopholes. The legislative push includes the Ending the Carried Interest Loophole Act, which targets fund managers, and the Fair Trusts for Fiscal Responsibility Act, which taxes large trust funds. Although legal experts project these bills will fail to become law under President Donald Trump, they establish the foundation for future tax policy fights.
Key points
Democrats are using tax legislation to outline party priorities despite facing expected v…: Democrats are using tax legislation to outline party priorities despite facing expected vetoes from President Donald Trump.
Trust funds exceeding $50 million would face recurring annual taxes under proposals aimed…: Trust funds exceeding $50 million would face recurring annual taxes under proposals aimed at curbing estate tax avoidance.
Fund managers would lose preferential capital-gains tax treatment and tax deferral option…: Fund managers would lose preferential capital-gains tax treatment and tax deferral options under the proposed carried interest reform.
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Democrats' sweeping midterm victories have renewed momentum for taxing the wealthy on a national level. Sen. Ron Wyden, D-Ore., who is set to retake control of the Senate Committee on Finance, has already put billionaires on notice. Several proposals are already before the committee, including measures to close the carried-interest tax break and impose taxes on large trust assets.
"On taxes, the committee will redouble its efforts to ensure billionaires pay their fair share and hold tax cheats accountable. Democrats will spearhead a tax agenda that puts American families first and requires the ultra-rich and corporations to pay their fair share," Wyden said in a statement Wednesday morning.
Tax lawyers told CNBC that proposed wealth taxes and other tax hikes are unlikely to become law because the Democrats have not won enough seats to overcome a veto from President Donald Trump. However, the measures are worth monitoring as they shape the party's agenda heading into the next presidential election, they said.
"The proposals are not necessarily anything that will pass over the next two years. But if there is an…
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