Congress proposes first federal wealth tax targeting ultra-wealthy
H.R. 2912 — Oligarch Act of 2025 · Filed by Summer Lee (D-PA) · 12 cosponsors · Introduced Apr 14, 2025 · Referred to committee
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What it does
This bill would impose a new federal wealth tax on individuals and trusts with net assets above a threshold (roughly $50 million to $100 million, adjusted annually for median household wealth). The tax rate scales from 2% on assets just above the threshold to 8% on assets exceeding 1,000 times the threshold. Married couples are taxed as a single unit, and trust assets are attributed to grantors or beneficiaries to prevent avoidance. The bill directly targets high-net-worth individuals and would generate federal revenue from wealth holdings rather than income alone.
Why we flagged it
The bill's core mechanism is a tiered wealth tax on net assets above a high threshold, with rates escalating by wealth bracket. This is a direct revenue measure targeting ultra-high-net-worth individuals and trusts, framed as addressing wealth concentration.
What the text implies
- Asset valuation methodology is not detailed in the excerpt; the IRS will need to establish rules for valuing illiquid assets (private businesses, real estate, art), creating potential disputes and compliance costs.
- Trust attribution rules (grantor vs. beneficiary treatment) may incentivize restructuring of family wealth arrangements, potentially shifting assets to lower-tax jurisdictions or trust forms not yet contemplated by the statute.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. federal government (revenue collection); potential beneficiaries of federal spending funded by wealth tax revenue (not specified in bill)