Congress targets ultra-wealthy with new annual wealth tax, funds IRS enforcement

What it does

This bill imposes a new annual wealth tax on individuals with net assets exceeding $50 million, starting in 2027. The tax rate is 2% on assets between $50 million and $1 billion, and 3% on assets above $1 billion (rising to 6% if universal healthcare legislation passes). Married couples are taxed as one unit, and certain trusts are treated as taxpayers. The bill also authorizes $100 billion in IRS funding over 11 years to enforce the tax and improve compliance.

Why we flagged it

The bill's core mechanism is a direct annual tax on net assets above $50 million, with progressive rates. This is a straightforward wealth tax, not a deregulation, subsidy, or procedural measure. The title accurately describes the operative function.

What the text implies

• Valuation of illiquid assets (private businesses, real estate, art) will require new IRS methodologies; disputes over 'correct' valuations may generate litigation and create compliance uncertainty for affected taxpayers.
• The 5-year payment extension for taxpayers with 'severe liquidity constraints' or 'undue hardship' creates a discretionary deferral mechanism that may reduce effective tax collection and invite disputes over eligibility.
• Trust attribution rules (especially for nongrantor multibeneficiary trusts) are complex and may incentivize restructuring of family wealth arrangements, shifting assets into structures designed to minimize tax exposure.
• The 30% annual audit requirement for all wealth-tax filers will require substantial IRS capacity; if funding is not appropriated as authorized, enforcement will be weak and avoidance incentives high.
• Covered expatriates face a 40% wealth tax on exit, which may deter high-net-worth individuals from renouncing citizenship but could also trigger constitutional challenges on takings or due process grounds.

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

Who it affects

The wealth tax directly targets ultra-high-net-worth individuals and does not affect ordinary citizens below the $50 million threshold. Revenue generated funds public services and reduces wealth inequality. The bill's enforcement mechanisms and IRS funding suggest intent to close avoidance loopholes, though implementation risk exists.

Who stands to gain

• U.S. federal government (revenue collection)
• IRS (enforcement funding and staffing expansion)

Named in the bill

Internal Revenue Service (IRS), Secretary of the Treasury, Ultra-high-net-worth individuals (>$50M net assets), Nongrantor multibeneficiary trusts, Covered expatriates, Financial institutions (reporting obligations)

Where it stands

49 cosponsors: 49 Democrats.

• Mar 25, 2026 — Introduced · Congress.gov: “Introduced in House”
• Mar 25, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

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

Money around this bill

3 lobbying clients named this bill on 3 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $1,422,073 in lobbying spend. A filing names 23 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 61% of bills with at least one filing.

Pramila Jayapal, the sponsor, reported $289,750 in PAC receipts in the 2026 cycle.

• Real Estate Roundtable — $1,002,073 on 1 filing
• American Federation of Teachers — $410,000 on 1 filing
• P Street Project, Inc. — $10,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.