This bill would create a new annual wealth tax on ultra-wealthy Americans, applying a tiered rate structure of 2% on net assets between $50 million and $1 billion, and 3% on assets exceeding $1 billion (potentially rising to 6% if universal healthcare legislation passes), while assets under $50 million would not be taxed. The tax applies broadly to nearly all property types and includes special rules to prevent avoidance through trusts and gifts, while allowing limited exclusions for small personal items and non-residents' foreign assets. To enforce the new tax, the bill requires the Treasury Department to implement asset reporting requirements within 12 months, mandates annual audits of at least 30% of affected taxpayers, and imposes steep penalties of 30-50% for substantial understatements of asset valuations. The legislation authorizes $100 billion in IRS funding through 2037 to support enforcement ($70 billion), taxpayer services ($10 billion), and system modernization ($20 billion), and it allows the Treasury Secretary to extend payment for up to five years for taxpayers facing severe liquidity constraints. The bill, introduced by Rep. Jayapal and over 40 progressive Democrats on March 25, 2026, would affect only the nation's ultra-wealthy individuals and certain trusts while Treasury must report biannually to Congress beginning in 2029 on how the tax is being administered.
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