119-HR-8085 Journalist Public Summary

Headline Summary

A new federal “Ultra-Millionaire” wealth tax would charge annual taxes on fortunes above $50 million, pair that with tougher reporting and audits, and ramp up IRS funding to enforce it.

What It Does

The bill imposes an annual tax on an individual’s net assets (worldwide for U.S. residents; U.S.-sited assets for nonresident noncitizens). Married couples are treated as one taxpayer. Most ordinary belongings aren’t counted, but high‑value or investment‑type items are. Treasury must write detailed valuation and reporting rules within a year, and the IRS must audit a substantial share of affected taxpayers each year.

• Creates a federal wealth tax: 0% up to $50 million; 2% on wealth between $50 million and $1 billion; 3% above $1 billion (rises to 6% above $1 billion only if Congress enacts a universal public health insurance law that bars duplicate private coverage).
• Defines “net assets” broadly (worldwide for U.S. residents) and attributes certain trust‑held assets back to grantors or beneficiaries to limit avoidance.
• Excludes ordinary tangible personal property worth $50,000 or less per item that isn’t used for business or investment, but does not exclude items like collectibles, boats, aircraft, mobile homes, trailers, vehicles, or antiques that tend to hold or gain value.
• Directs Treasury to issue valuation methods for hard‑to‑price assets (including formula approaches and limits on valuation discounts) and to set information‑reporting requirements that can leverage existing filings (including foreign‑account regimes).
• Sets penalties for undervaluation, with higher penalties for large or “gross” misstatements, and bars deducting this wealth tax on income‑tax returns.
• Allows up to five years to pay in cases of severe liquidity constraints or hardship to ongoing enterprises.
• Authorizes $100 billion for the IRS (FY2027–2037) across enforcement, taxpayer services, and modernization.

Who’s For It

• Sponsor and Democratic co-sponsors: Led by Rep. Pramila Jayapal (D‑WA), joined by a group of House Democrats named in the bill text (including Reps. Brendan Boyle, Donald Beyer, Judy Chu, Frank Pallone, Jerrold Nadler, Alexandria Ocasio‑Cortez, Ilhan Omar, Ayanna Pressley, Rashida Tlaib, Mark Takano, Nydia Velázquez, Jan Schakowsky, and others).
• Supporters’ case (as commonly made for wealth‑tax proposals): The very richest households hold large unrealized gains and sophisticated tax structures; an annual levy could raise revenue from extreme concentrations of wealth, curb avoidance through trusts and offshore accounts, and fund public services alongside better IRS customer service and technology.

Who’s Against It

• Likely Republican opposition and some business/industry groups: In past debates, critics argue a federal wealth tax may be unconstitutional (apportionment issues), would be complex to administer and value fairly, could spur capital flight or expatriation, and might pressure family‑owned or asset‑rich, cash‑poor businesses.
• Civil‑liberties and privacy concerns from some quarters: expanded reporting, estimated entity valuations by third parties, and high audit rates may raise privacy and due‑process worries.

What’s Next

Status as of March 25, 2026: Introduced in the House and referred to the Ways and Means Committee the same day. Next steps typically include committee hearings and/or markup; if advanced, a House floor vote, then consideration in the Senate, and finally the President’s desk if both chambers pass the same text.