in downtown los angeles nov 13 2020 al seiblos angeles times via getty images file the report calling for a new tax targeting the worlds wealthiest comes after an investigation into the taxes of billionaires published by the nonprofit news organization propublica last year found that the ultrawealthy are able to use legal loopholes to avoid paying taxes on wealth gains the propublica report published tax documents of the wealthy and said that while the median american household paid 14 of their income in federal taxers the wealthiest 25 americans had an average socalled true tax rate of just 34 of the amount their wealth grew each year between 2014 and 2018 this was in large part due to keeping their reported income and thus reported income tax to just a fraction to what their net worth actually is and storing most of their wealth in stocks which are only taxed once they are sold the oxfam report cited these differing tax rates and is advocating for billionaires to pay taxes every year on their wealth increases whether these gains are realized or not ie whether a billionaire sells the stock after it rises in value or holds onto it to avoid paying taxes on those gains more treasury secretary says us economy has never worked fairly for black americans or for any american of color while the idea of a billionaires tax has gained momentum in washington and beyond in recent years especially over the pandemic it has faced an uphill battle in implementation critics call these type of taxes on unrealized gains unconstitutional based on the definition of income the researchers at oxfam meanwhile view a tax on the rich as an imperative and obvious way to address the deadly inequality wrought by the pandemic one of the single most powerful tools we have to address this level of egregious and deadly inequality is to tax the rich abby maxman the chief of oxfam america said in a statement monday instead of lining the pockets of the ultrawealthy we should be investing billions of dollars into our economy our children and our planet paving the way for a more equal and sustainable future