Ultra-Millionaire Tax Act

Summary#

This bill would add a new federal "wealth tax" on the net value of an individual's assets as of the last day of each year. It sets a $50,000,000 zero bracket (0% tax up to that amount), a second bracket taxed at 2% on assets over $50,000,000 up to $1,000,000,000, and a higher third rate on assets above $1,000,000,000. The normal third-rate is 3%, but it rises to 6% in any year when Congress has enacted a law that creates a comprehensive, universal health insurance program and bans duplicate private coverage. Married couples are treated as one taxpayer. Special rules apply to certain trusts, gifts to minors, nonresident residents' U.S. property, deceased people, and people who renounce citizenship. The Secretary of the Treasury must set valuation rules within 12 months, require information reporting, and annually audit at least 30% of taxpayers subject to the tax. The bill authorizes specific Treasury/IRS funding for enforcement, taxpayer services, and business system modernization and includes rules for payment extensions, penalties for valuation understatements, and periodic reports to Congress.

What it means for you#

  • Individuals with less than $50 million in net assets are not taxed under this new tax.
  • People with more than $50 million in net assets would owe 2% on the portion between $50 million and $1 billion, and an additional 3% (or 6% in the special health-care condition) on amounts above $1 billion.
  • Married couples file together for this tax.
  • Some trusts may be treated like separate taxpayers or have their assets attributed to beneficiaries.
  • The Treasury will write rules for valuing hard-to-price assets and will require reporting from financial firms and others to enforce the tax.
  • Taxpayers with extreme liquidity problems or who would cause undue hardship to ongoing businesses may seek up to a 5-year payment extension, under rules the Treasury will write.

Expenses#

  • The bill specifically authorizes appropriations for the IRS for fiscal years 2027 through 2037: $70,000,000,000 for enforcement, $10,000,000,000 for taxpayer services, and $20,000,000,000 for business system modernization.
  • No publicly available information on projected revenue, overall budgetary impact, or other costs is included in the provided text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.