Congress targets ultra-wealth with new 2–3% annual tax, funds IRS enforcement
H.R. 8085 — Ultra-Millionaire Tax Act of 2026 · Filed by Pramila Jayapal (D-WA) · 49 cosponsors · Introduced Mar 25, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill creates a new federal wealth tax on ultra-wealthy individuals, imposing a 2% annual tax on net assets above $50 million and 3% (or 6% if universal healthcare legislation passes) on assets above $1 billion. The tax applies to the total value of all property—real, personal, tangible, intangible—minus debts, and includes special rules for trusts and non-residents. It also funds the IRS with $100 billion over 11 years to enforce the tax and tightens reporting requirements for foreign assets.
Why we flagged it
The bill's primary function is to establish a new annual wealth tax on ultra-millionaires and billionaires, coupled with substantial IRS funding to enforce it. This is redistributive fiscal policy, not a carve-out or subsidy.
What the text implies
- Valuation methodology for illiquid assets (private businesses, real estate, art) will be set by Treasury via regulation, creating significant administrative discretion and potential litigation over 'formulaic' approaches that may differ from market reality.
- The 5-year payment extension for taxpayers with 'severe liquidity constraints' may allow ultra-wealthy individuals to defer payment indefinitely if they can demonstrate illiquidity, potentially undermining revenue collection.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. federal government (revenue collection); IRS (enforcement budget increase); Tax compliance and valuation advisory firms