Sen. Elizabeth Warren (D-MA) introduced the Ultra-Millionaire Tax Act, proposing a 2% annual tax on households and trusts worth over $50 million and a 1% surtax on those over $1 billion. The bill, co-sponsored by 45 lawmakers, includes a 40% exit tax to prevent tax avoidance by renouncing citizenship.
The legislation, led in the House by Reps. Pramila Jayapal (D-WA) and Brendan Boyle (D-PA), would affect about 260,000 households, or the top 0.15% wealthiest. Warren argues the tax would generate $6.2 trillion over a decade, funding policies like lowering Medicare eligibility and universal child care.
The bill faces opposition in the GOP-controlled Congress but sets a baseline for Democratic tax policy ahead of the midterms. Warren’s office cites rising billionaire wealth, up 25% in a year, as justification for the tax, while critics argue it could drive wealthy individuals to leave the country.