To amend the Internal Revenue Code of 1986 to impose a tax on the net value of assets of a taxpayer, 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
This bill creates a new annual wealth tax targeting ultra-wealthy Americans. Individuals with net assets over $50 million would pay 2% annually on wealth above that threshold, while those with over $1 billion would pay 3% on wealth above that amount (increasing to 6% if Medicare-for-All legislation is enacted). The tax applies to all assets worldwide including real estate, investments, business interests, and collectibles.
Who Benefits and How
The general public and federal government benefit from new tax revenue estimated in the hundreds of billions annually. Middle and working-class Americans could benefit from programs funded by this revenue. The bill also authorizes $100 billion in IRS funding for enforcement, taxpayer services, and modernization, potentially improving tax administration for all.
Who Bears the Burden and How
Ultra-wealthy individuals with net worth over $50 million face a new annual tax liability of 2-6% on their wealth. This affects roughly 100,000 American households. Billionaires face the highest rates and would owe hundreds of millions annually. Covered expatriates (those renouncing citizenship to avoid taxes) face a 40% exit tax. Financial institutions and asset managers face new reporting requirements to help IRS track wealthy individuals' assets.
Key Provisions
- 2% annual tax on net assets between $50 million and $1 billion
- 3% tax on net assets above $1 billion (6% if Medicare-for-All enacted)
- 40% exit tax for wealthy individuals renouncing US citizenship
- Mandatory IRS audits of at least 30% of affected taxpayers annually
- $100 billion authorization for IRS enforcement, services, and modernization
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
Imposes an annual wealth tax on individuals with net assets exceeding $50 million, with rates of 2% on assets above $50M and 3% (or 6% if Medicare-for-All passes) on assets above $1 billion
Key Policy Areas
Tax Policy, Wealth Distribution, Healthcare
Primary Purpose
Imposes an annual wealth tax on individuals with net assets exceeding $50 million, with rates of 2% on assets above $50M and 3% (or 6% if Medicare-for-All passes) on assets above $1 billion
Policy Domains
Ultra-Millionaire Tax Act of 2024
Identified Gains
Contextual inference, no direct clause citation- Federal government (increased revenue)
- General public (potential program funding)
- IRS (enforcement resources)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Ultra-wealthy individuals (net worth over $50M)
- Billionaires
- Covered expatriates
- Financial institutions (reporting requirements)
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMs. Warren (for herself, Mr. Sanders, Mr. Whitehouse, Mr. Merkley, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Billionaires, Covered expatriates renouncing citizenship, Estates of ultra-wealthy decedents
Federal government, Internal Revenue Service
Internal Revenue Service faces effects in multiple directions
Financial institutions holding wealthy client assets, Foreign financial institutions, Private equity and hedge fund owners
Offshore trust administrators, Wealth management firms
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "taxpayer"
- → Individual with net assets exceeding $50 million
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
Value of all property of the taxpayer, real or personal, tangible or intangible, wherever situated, reduced by any debts owed by the taxpayer
$50,000,000 - wealth below this amount is not taxed
$1,000,000,000 - wealth above this amount is taxed at 3% (or 6% if Medicare-for-All)
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