Wealth tax funds teacher raises and Medicare dental, hearing, vision coverage

What it does

This bill imposes a 5% annual wealth tax on individuals and trusts holding over $1 billion in assets, with revenues funding teacher salary increases ($60,000 minimum), home and community-based care services, Medicare dental/hearing/vision coverage, and expanded ACA premium subsidies. It also repeals certain reconciliation health provisions while preserving rural health funding.

Why we flagged it

The bill's operative mechanism is a direct wealth tax on ultra-high-net-worth individuals, with revenues explicitly appropriated to public programs (education, healthcare, social services). This is a revenue-raising measure paired with spending directives, not a deregulation or subsidy.

• Section 301 repeals subtitle B of title VII of the reconciliation act (Public Law 119-21), with narrow exceptions. This is substantively unrelated to the wealth tax mechanism and appears to be a legislative vehicle for undoing prior health policy.

What the text implies

• The wealth tax includes a 'wealth registry' (Section 2904(a)) requiring IRS to establish centralized asset ownership records for all ultra-wealthy taxpayers, creating unprecedented financial surveillance infrastructure.
• Section 2903(d) imposes a 60% wealth tax rate on 'covered expatriates' leaving the U.S., potentially creating exit-tax effects that may trigger constitutional challenges or capital flight.
• Medicare dental/hearing/vision coverage begins in 2028 but is subject to strict frequency limits (2 exams/year for dental, 1 pair eyeglasses per 2 years, 1 hearing aid per 5 years per ear), capping utilization and potentially limiting actual benefit realization.
• The bill repeals reconciliation health provisions but carves out rural health funding (Section 301(b)), suggesting a targeted legislative reversal of prior policy rather than a coherent health reform.
• Teacher salary floor ($60,000) is indexed to inflation but no enforcement mechanism or penalty is specified for states/districts that fail to comply, creating implementation uncertainty.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary citizens gain concrete benefits: Medicare beneficiaries access dental, hearing, and vision care for the first time; teachers receive guaranteed minimum salary increases; lower-income families receive larger ACA premium tax credits; home and community-based care services expand. The wealth tax targets only ultra-wealthy individuals (>$1B), imposing no direct cost on ordinary people.

Who stands to gain

• Medicare beneficiaries (dental, hearing, vision coverage)
• Public school teachers (salary floor increase)
• Lower-income families (expanded ACA premium tax credits)
• Home and community-based services providers (Medicaid expansion)
• Dental and hearing aid suppliers (new Medicare payment streams)

Named in the bill

Internal Revenue Service, Department of Health and Human Services, Medicare, Medicaid, American Dental Association, State education agencies, Federally qualified health centers, Rural health clinics

Where it stands

7 cosponsors: 7 Democrats.

• Mar 3, 2026 — Introduced · Congress.gov: “Introduced in House”
• Mar 3, 2026 — Referred to House Committee on Education and Workforce and House Committee on Financial Services · Congress.gov: “Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

4 lobbying clients named this bill on 4 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $1,315,000 in lobbying spend. A filing names 35 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 72% of bills with at least one filing.

Ro Khanna, the sponsor, reported $0 in PAC receipts in the 2026 cycle.

• International Association of Machinists and Aerospace Workers — $715,000 on 1 filing
• American Federation of Teachers — $410,000 on 1 filing
• National Nurses United — $110,000 on 1 filing
• The Patriotic Millionaires LLC — $80,000 on 1 filing

Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.