Wyden Seeks Crackdown on Wealthy Tax Dodgers’ Trusts in New Bill

Senate Finance Chair Ron Wyden (D-Ore.) proposed a new bill Wednesday that would close a loophole on high-value trusts that rich Americans use to lower their federal income, gift, and estate taxes.

The legislation, also sponsored by Sen. Angus King (I-Maine), creates additional requirements for grantor retained annuity trusts, or GRATs, which the senators said allow the wealthiest taxpayers to dodge taxes. The bill likely has little chance of passing the GOP-controlled House, but comes as Democrats lay out their tax-the-rich agenda ahead of 2025 tax negotiations.

“The abuse of these high-value trusts is a clear-as-day example of how there’s ...