To amend the Internal Revenue Code of 1986 to establish a wealth tax, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill creates new wealth tax subtitle in the Internal Revenue Code with graduated rates on net assets, creates imposition of graduated wealth tax: 2% to 8% on net assets above threshold, and requires definition of net taxable assets, exclusions for small tangible property, and valuation rules for non-traded assets. It relies on tax rate changes, compliance mandates, reporting requirements, and definition changes. The main policy areas are Finance and Taxation.
Who Benefits and How
Federal Treasury could gain revenue opportunities and Tax advisory and valuation firms could gain revenue opportunities.
Who Bears the Burden and How
Ultra-high-net-worth individuals could face higher costs, Wealth tax payers would take on compliance duties, and Trusts and family wealth structures could face higher costs.
Key Provisions
- Creates new wealth tax subtitle in the Internal Revenue Code with graduated rates on net assets.
- Creates imposition of graduated wealth tax: 2% to 8% on net assets above threshold.
- Requires definition of net taxable assets, exclusions for small tangible property, and valuation rules for non-traded assets.
- Requires special rules for deceased taxpayers, non-residents, and expatriates subject to the wealth tax.
- Requires mandatory information reporting on net asset values by financial institutions and business entities.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates new wealth tax subtitle in the Internal Revenue Code with graduated rates on net assets, creates imposition of graduated wealth tax: 2% to 8% on net assets above threshold, and requires definition of net taxable assets, exclusions for small tangible property, and valuation rules for non-traded assets.
Key Policy Areas
Finance, Taxation
Primary Purpose
The bill creates new wealth tax subtitle in the Internal Revenue Code with graduated rates on net assets, creates imposition of graduated wealth tax: 2% to 8% on net assets above threshold, and requires definition of net taxable assets, exclusions for small tangible property, and valuation rules for non-traded assets.
Policy Domains
Whole bill
Identified Gains
- Federal Treasury
- Tax advisory and valuation firms
Identified Costs
- Ultra-high-net-worth individuals
- Wealth tax payers
- Trusts and family wealth structures
- Trusts
- Financial institutions
Sponsors
Legislative Progress
IntroducedMs. Lee of Pennsylvania (for herself, Ms. Tlaib, Mr. Nadler, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Estates of deceased ultra-wealthy individuals, Financial institutions, Owners of illiquid or hard-to-value assets
Covered expatriates, Ultra-high-net-worth individuals, Wealth tax payers
Federal Treasury, IRS, IRS enforcement division
Positive-direction: Federal Treasury
Negative-direction: IRS, IRS enforcement division
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
Any individual or non-exempt trust
1,000 times the greater of ,000 or applicable median household wealth
Value of all property minus debts, excluding certain tangible personal property under ,000
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology