Merkley, 45+ Lawmakers Renew Push for Wealth Tax on Ultra-Millionaires and Billionaires

New analysis shows that wealth tax would generate over $6 trillion in revenue that could lower costs for families through programs like universal child care, free community college, Medicare expansion, and more

Bill One-Pager (PDF) | Bill Text (PDF) | Analysis (PDF)

Washington, D.C. - Oregon's U.S. Senator Jeff Merkley joined a bicameral group of 45+ lawmakers in reintroducing the Ultra-Millionaire Tax Act, legislation that would apply a wealth tax to fortunes above $50 million. According to a new analysis, the bill would generate $6.2 trillion in revenue over the next decade, enough money to pay for investments like universal child care, free community college, Medicare expansion, and more-without raising taxes on 99.85% of American households.

"For too long, a handful of ultra-millionaires and billionaires have watched their fortunes soar while working families struggle to keep up with the cost of living. It's time to restore the basic promise that everyone pays their fair share and our economy works for all, not just the wealthiest few," said Merkley. "The Ultra-Millionaire Tax Act is a straightforward solution to help rebalance our economy and ensure working families can thrive by investing in health care, housing, education, and good-paying jobs."

The Ultra-Millionaire Tax Act would level the playing field and narrow the wealth gap by asking the wealthiest 260,000 households in America, or the top 0.15%, to pay their fair share. The bill would establish a 2% annual tax on the net worth of households and trusts valued at over $50 million and an additional 1% annual surtax (3% total annual tax) on the net worth of households and trusts above $1 billion. The bill also includes robust anti-evasion and avoidance measures, including $100 million in new funding for the IRS and a 40% "exit tax" on the wealth of ultra-millionaires and billionaires who renounce their citizenship to avoid the tax.

With the $6.2 trillion in revenue the Ultra-Millionaire Tax Act would generate, the federal government could make serious investments in lowering costs for families. The revenue could pay for all the following policies combined-with money left to spare:

• Provide universal, affordable child care
• Lower rents by building millions of new homes
• Slash child poverty by expanding the Child Tax Credit
• Lower the Medicare eligibility age to 55
• Offer universal paid family leave
• Establish tuition-free community college

The Ultra-Millionaire Tax Act was led by U.S. Senator Elizabeth Warren (D-MA) and co-sponsored by 10 Senators, the largest coalition of Senate cosponsors supporting the bill to date. Additionally, over 39 Representatives co-sponsored the bill, the largest coalition of House supporters to date. The bill is endorsed by nearly 40 unions, advocacy groups, and national organizations.

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