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
The Oligarch Act of 2025 creates a new annual wealth tax in the Internal Revenue Code targeting the wealthiest Americans. Individuals with net assets above a threshold (1,000 times the greater of ,000 or median household wealth, roughly million) face graduated tax rates: 2% on wealth up to 10x the threshold, 4% up to 100x, 6% up to 1,000x, and 8% above that. Trusts pay a flat 8% above the threshold. The tax applies to all property worldwide (with exclusions for tangible personal property under ,000), treats married couples as one taxpayer, and attributes trust assets to grantors or beneficiaries. Key provisions include IRS valuation rules for non-traded assets, mandatory information reporting by financial institutions, 30% annual audit requirements, accuracy-related penalties (30-50% for valuation understatement), no deduction against income taxes, and up to 5 years payment extension for liquidity-constrained taxpayers.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establish a progressive annual wealth tax on the net assets of ultra-high-net-worth individuals and trusts exceeding approximately 1,000 times median household wealth, with graduated rates from 2% to 8%, along with valuation rules, reporting requirements, and enforcement provisions.
Who Benefits
- Federal Treasury (new tax revenue)
- Lower and middle wealth households (redistribution)
Who Bears Costs
- Ultra-high-net-worth individuals
- Trusts and family wealth structures
- IRS (enforcement obligations)
Key Policy Areas
Taxation, Finance
Primary Purpose
Establish a progressive annual wealth tax on the net assets of ultra-high-net-worth individuals and trusts exceeding approximately 1,000 times median household wealth, with graduated rates from 2% to 8%, along with valuation rules, reporting requirements, and enforcement provisions.
Policy Domains
Legislative Strategy
"Tax accumulated wealth rather than income by creating a new subtitle in the IRC with progressive rates, comprehensive anti-avoidance rules for trusts and gifts, and mandatory IRS enforcement"
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
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.
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