hold on there's just too much going on in Congress lmao...
Tax billionaires' net worth above $1B at 5% yearly.
Rep. Ro Khanna (D-CA), introduced March 3, 2026.
Referred to Ways and Means and three other committees.
This bill creates a new annual wealth tax on individuals and trusts with net assets over $1 billion (adjusted for inflation after 2026). The tax is 5% of the net value of all assets worldwide. For nonresident non-citizens, it applies only to U.S. assets. The bill also includes enforcement measures, like auditing at least 50% of taxpayers each year. The sponsor is Representative Ro Khanna, a Democrat from California; the bill has been referred to multiple committees including Ways and Means, Energy and Commerce, Financial Services, and Education and Workforce, meaning it needs passage through each before a House vote.
Introduced Mar 3, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
The wealth tax targets roughly the top 0.01% of households. Revenue funds multiple programs: Medicare Part B would cover dental care (preventive, fillings, dentures), hearing aids, and routine eye exams with copays and limits. Starting in 2027, each public school teacher would earn at least $60,000 base salary, adjusted for inflation. Families with income up to 250% of state median income get child care assistance with copays capped at 7% of income. The Housing Trust Fund would receive $85.6 billion per year to build affordable housing.
Supporters Say
Supporters say the wealth tax targets extreme inequality and funds popular programs like Medicare expansion and teacher pay raises.
Critics Say
Critics argue a wealth tax is unconstitutional, hard to administer, and could drive billionaires to move or hide assets abroad.
Supporters point to the bill's detailed enforcement mechanisms, including a wealth registry and 50% audit rate, as safeguards against evasion. They also note the tax only kicks in above $1 billion, affecting very few people. Critics contend that valuing assets like closely held businesses is difficult and that a 5% annual tax on assets could be confiscatory over time, especially since capital gains are already taxed upon realization. Some also question whether the Supreme Court would uphold a federal wealth tax.