A new tax proposal introduced by Democrats in Congress on Wednesday would tax the gains billionaires makes on assets to help pay for President Joe Biden’s social and climate-change agenda.

The president’s two infrastructure bills have been stalled in Congress for months, but this proposal, Democrats say, will help fund some of the big ticket items.

“Money goes up in the stock market, in bonds, in ownership, stakes in companies year after year after year,” Michael Kink with Strong Economy for All explains. “They don't pay any taxes on that right now. So this bill would define those gains as income. You would have to report, if you're a billionaire, how much your investments and other holdings have gone up in a year and you'd pay the regular income tax rate on that.”

The federal plan unveiled would affect only around 700 taxpayers who earn more than $100 million per year or who have more than $1 billion in assets for three straight years, according to Democrats.

Congressional lawmakers have been negotiating back and forth for the past few months on each detail in Biden’s social spending proposal, which would include expanding Medicaid coverage and expanding the Child Tax Credit.  

The billionaires tax proposal is already meeting pushback from a few moderate Democrats and Republicans in Congress.

State Republican Party Chairman Nick Langworthy blasted the idea of raising taxes.

“I don't think any of us should be surprised that they're going to try to shove a tax increase down our throat,” Langworthy commented. “With where the country is heading, you can't help but think we're probably going to head to a recession. Raising taxes is not the answer.”

However, a “wealth tax” does have broad support across the country and in a recent poll, around two-thirds of Americans support raising taxes on billionaires.

Earlier this year, the state Legislature passed a bill that raised taxes on the wealthiest New Yorkers and corporations.

Kink says this is expected to generate over $4 billion for New York.

“If you're trying to put together a budget that actually invests in communities, that actually drives money into early childhood, into housing, into clean energy into education and higher education, you need money for those kinds of investments,” Kink said. “And the billionaires and the big corporations are the ones that have it.”

This specific proposal has a long way to go in Congress before it could ever hit the floor for a vote and there are other proposals on the table that would also potentially raise taxes on the ultra-wealthy in America to help pay for the two infrastructure bills.