Wealth tax funds Medicare expansion, but trust loopholes and expatriate carve-outs may limit revenue
S. 3956 — Make Billionaires Pay Their Fair Share Act · Filed by Bernie Sanders (I-VT) · 1 cosponsor · Introduced Mar 2, 2026 · Referred to committee
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What it does
This bill creates a new annual wealth tax on the net value of assets held by high-net-worth individuals, starting in 2027. It also expands Medicare to cover dental, hearing, and vision care; increases premium tax credits for health insurance; funds affordable child care; and appropriates $85.6 billion for a housing trust fund. The wealth tax revenue and affordability rebates are designed to fund these expansions.
Why we flagged it
The bill's primary mechanism is a new annual wealth tax on high-net-worth individuals (Section 101), paired with major Medicare expansions (dental, hearing, vision) and child care/housing entitlements funded partly by that tax revenue. The wealth tax is the novel fiscal instrument; the healthcare expansions are the public-benefit payload.
- Section 301 repeals reconciliation health provisions unrelated to wealth tax or stated affordability goals—appears to be a policy reversal rider.
- Section 501 authorizes $85.6B for Housing Trust Fund (2026–2035), substantively unrelated to wealth tax mechanism or Medicare expansions.
What the text implies
- Wealth tax valuation rules (Section 2902) allow taxpayers to elect 'most recent readily ascertainable value plus appreciation' for hard-to-value assets, creating potential for systematic undervaluation and audit burden on IRS.
- Trust provisions (Section 2903) treat grantor trusts and incomplete gifts as owner property, but aggregation rules and trust-specific carve-outs may allow sophisticated estate planning to reduce taxable wealth.
The full analysis lists 5 implications of this text.
Who stands to gain
Medicare beneficiaries (dental, hearing, vision coverage); Low-income families (child care subsidies, housing trust fund); Health insurance issuers (expanded premium tax credits increase demand)