WASHINGTON (Reuters] – U.S.-based billionaires will be subject to tax for unrealized gains they make from their assets in order to fund President Joe Biden’s new social-policy, climate-change legislation. According to a Wednesday proposal by the Senate Democrat responsible for tax policy,

Ron Wyden, Chairman of the Senate Finance Committee, has announced that the “Billionaires Tax” is part of a 2-pronged legislative strategy. He also proposed a 15% corporate minimum tax on U.S.-based corporations. These proposals were unveiled Tuesday.

Wyden along with several other senators including Elizabeth Warren (Democratic Senator) say that the legislation will curb corporate tax avoidance and wealthy. They also believe it could produce hundreds of billions to fund Biden’s “Buildback Better” legislation. The legislation is anticipated to cost from $1.5 trillion to $2 trillion.

The White House supports the corporate minimum income tax. This would be in line with the global corporate minimum income tax that was recently adopted by 136 nations. It is aimed at companies who pay very little to no tax through gaming the international tax system.

However, the House of Representatives Democrats could oppose the billionaires’ tax. They favor simple increases in taxes for wealthy people and businesses to help fund the Biden agenda.

According to a statement, the billionaires tax would apply for 2022 and would impact roughly 700 taxpayers who have more than $1 billion of assets or 100 million annual income over three years.

According to Aides, it will impose the 23.8% capital gain tax on long-term capital gains for tradable assets like stocks. This applies regardless of whether they are sold. The tax would allow taxpayers the ability to deduct losses from assets.

According to a statement, the tax could also be imposed on billionaire ownership interests in pass-through entities or trusts that include real estate investment trusts.