Summary#
This bill would create a new annual "wealth tax" and use the money to pay for several programs. The wealth tax would charge 5 percent of the net value of a person or trust's assets each year if those assets are more than $1,000,000,000. The bill also changes tax reporting and creates a registry of asset ownership. It requires the IRS to audit at least 50 percent of people who must pay the tax and directs 1 percent of the tax revenues to IRS enforcement costs.
The bill also includes many spending and program changes across health, housing, child care, education, and long-term care. Key provisions include expanded Medicare coverage for dental, hearing, and vision services (with many services effective in 2027 or 2028), changes to premium tax credit eligibility, a new affordability rebate payment to individuals, a large Housing Trust Fund authorization, a national child care entitlement that starts in October 2026, a program to ensure a $60,000 starting annual base salary for public school teachers (for 2027–2031), and grants and programs to improve home and community-based services for people who need long-term care.
What it means for you#
- Very high-wealth individuals and some trusts with more than $1 billion in assets would owe a 5% annual tax on net assets. Married couples are treated as one taxpayer.
- The government would collect more detailed information about assets, including public securities, digital assets, private businesses, and real estate, to determine tax amounts.
- Some Medicare beneficiaries could get new coverage for dental, hearing, and vision services beginning in 2027–2028, with limits and payment rules set in the bill.
- Families could receive a one-time or regular affordability rebate amounts updated in the tax code: $3,000 per individual ($6,000 for joint returns) plus $3,000 per dependent as defined in the bill text.
- States, territories, and tribes would be able to receive federal funds to run a birth-to-five child care and early learning entitlement starting October 1, 2026. The bill sets rules for eligibility, provider standards, copay sliding scales, and quality funding.
- Public school teachers could see a federal program to help states guarantee a $60,000 starting annual base salary for new teachers for fiscal years 2027 through 2031, with federal grants to states to meet those goals.
- The bill funds planning and improvements for home and community-based services (HCBS) and raises the federal matching share for states that meet HCBS targets.
Expenses#
The bill specifies many appropriations and funding rules in the text, including:
- Wealth tax: imposes a 5% annual tax on net assets above $1,000,000,000. No revenue estimate or total projected receipts is provided in the bill text.
- IRS enforcement: requires the IRS to audit at least 50% of applicable taxpayers and directs amounts equal to 1% of revenues from the wealth tax for IRS enforcement each fiscal year.
- Affordability rebates: amends existing rebate rules to set rebate amounts at $3,000 per individual ($6,000 joint) plus $3,000 per dependent. No total cost estimate in the bill text.
- Medicare expansions implementation funding:
- $900,000,000 (HHS) for implementing dental and oral health coverage (FY2026, available until 2035).
- $370,000,000 (HHS) for implementing hearing coverage (FY2026, available until 2036).
- $500,000,000 (HHS) for implementing vision coverage (FY2026, available until 2035).
- Housing Trust Fund: authorizes $85,647,000,000 for the Housing Trust Fund for each fiscal year 2026 through 2035.
- Child care entitlement:
- Appropriates such sums as necessary to HHS beginning FY2026 for payments to states, tribes, and territories.
- $20,000,000,000 appropriated for FY2026 to carry out grants to localities and awards to Head Start agencies.
- Teacher pay program: $14,500,000,000 appropriated for FY2027 and that amount increases by the annual adjustment percentage in later years.
- HCBS and long-term care:
- $130,000,000 (FY2027) for HCBS improvement planning grants, plus $5,000,000 for technical assistance.
- $40,000,000 (FY2027) for federal activities related to Medicaid HCBS.
- $25,000,000 (FY2027) for HCBS quality measurement and improvement.
- The bill sets many other program-specific payment rules and effective dates (for example, Medicare dental/hearing/vision coverage generally begins January 1, 2028, with some items in 2027).
For many items the bill text does not include a single total cost or a government-wide budget estimate. The bill text does not provide an overall estimate of net fiscal impact, total revenues from the wealth tax, or total program costs beyond the specific appropriations listed. No publicly available information.
Proponents' View#
The bill text states goals and program purposes that supporters would point to, including: requiring very high-wealth individuals to pay an annual tax on large net asset holdings, increasing funding for health care (Medicare dental, hearing, vision) and for affordability rebates, expanding access to child care and early learning for children birth through five, raising starting teacher pay to a livable level and boosting teacher compensation, expanding and improving home and community-based services and long-term care workforce and quality, and funding housing through a large Housing Trust Fund authorization. The bill ties the new tax to financing these specific programs and investments.
Opponents' View#
No publicly available information.