The Ultra-Millionaire Tax Act of 2026 creates a new annual wealth tax on ultra-wealthy Americans by taxing the net value of their assets on December 31st each year, with the first $50 million exempted, a 2% tax on assets between $50 million and $1 billion, and either 3% or 6% on assets above $1 billion depending on healthcare legislation. The tax applies to individuals and married couples filing jointly, with special provisions for trusts, non-residents (taxed only on U.S. property), and expatriates (at a 40% rate), while personal items under $50,000 are excluded to protect common possessions. To enforce the tax, the bill authorizes $100 billion in IRS funding over fiscal years 2027-2037 for tax enforcement, taxpayer services, and system modernization, and requires the IRS to audit at least 30% of wealth tax filers annually with penalties of 30-50% for significant undervaluation of assets. The Treasury Secretary must establish valuation rules for non-publicly-traded assets within 12 months, taxpayers with severe liquidity constraints can pay over five years, and Congress will receive implementation reports every two years. The tax becomes effective for years beginning after December 31, 2026.
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