Sen. Elizabeth Warren, D-Mass., and progressive House lawmakers on Thursday unveiled a proposal to impose new annual taxes on the nation's wealthiest households, arguing it would address inequality and generate significant federal revenue.
The Ultra-Millionaire Tax Act of 2026, introduced alongside Reps. Pramila Jayapal, D-Wash., and Brendan Boyle, D-Pa., would apply a 2% annual tax on household net worth above $50 million and a 3% rate on wealth exceeding $1 billion.
The plan targets roughly 260,000 households, or about the top 0.15% of Americans, while leaving taxes unchanged for most taxpayers.
Lawmakers backing the bill said the current tax system does not fully capture wealth held by the ultra-rich, allowing some high-wealth individuals to pay lower effective rates relative to their assets than middle- and working-class families.
They cited research indicating the top 0.1% holds nearly as much wealth as the bottom 90% combined.
Under the proposal, the tax would raise an estimated $6.2 trillion over a decade, according to analysis cited by the bill's sponsors.
Sponsors said the revenue could be used to fund domestic priorities, including universal child care, expanded housing construction, a larger child tax credit, tuition-free community college, and lowering the Medicare eligibility age to 55.
The legislation also includes enforcement measures aimed at reducing tax avoidance.
These provisions include a $100 billion investment in the IRS, a minimum audit rate of 30% for those subject to the tax, and a 40% "exit tax" on wealthy individuals who renounce U.S. citizenship.
Supporters say the proposal would help "level the playing field" and reduce disparities in wealth, including racial wealth gaps, while increasing federal revenue from high-wealth households.
The measure is expected to face opposition from Republicans and business groups, who have argued that wealth taxes are difficult to administer and could affect investment and economic growth.
Similar proposals in past Congresses have not advanced.
The bill's introduction is likely to renew debate over taxing wealth rather than income, an approach that has gained traction among some Democrats but still lacks broad support in Congress.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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