Democrats Float Tax On Ultra-Wealthy To Fund Biden’s Agenda

"People who have tens of billions of dollars - particularly with appreciated stock - don't pay any tax on that appreciation," said Sen. Mark Warner (D-VA).

Oregon Sen. Ron Wyden wants to start taxing tradable assets - like stocks - that increase in value but haven't yet been sold.

Warner said billionaires frequently use loans from those holdings to avoid taxes.

"If that's the way they finance their lifestyle, I view that as closing a tax loophole," said Warner.

The new taxes would only apply to people with more than $1 billion in assets or who make more than $100 million in income for three consecutive years.

California Congressman Pete Aguilar said the taxes raised would help pay for measures like free universal pre-school, child tax credits and about $500 billion to fight climate change.

"The president's committed to pay for this piece of legislation," Aguilar said.

But some say taxing the ultra-wealthy to fund President Biden's plan isn't a good idea.

"It's another day and another really bad idea from Democrats to fund their reckless tax and spending spree," said Sen. John Thune (R-SD).

Thune called the effort "desperate."

"Markets go up, markets go down - if you had a year where your total value went down by 20% then what? Do you get a refund?" he said.

Democrats are also considering other alternatives to pay for the president's plan.

"Imposing a 15% minimum tax to make sure large corporations pay their fair share… creating a global minimum tax," said White House Press Secretary Jen Psaki.