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119-s-4246119th CongressWALLET

Ultra-Millionaire Tax Act of 2026

Sponsored By: Senator Warren, Elizabeth [D-MA]

Introduced

Summary

This bill would create an annual "ultra‑millionaire" wealth tax on individuals' net assets and pair that tax with major new IRS reporting and enforcement funding. It targets very large fortunes, adds rules for trusts, and builds reporting to collect the tax.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

Stronger audits, reporting, and penalties

If enacted, the bill would require the IRS to audit at least 30% of taxpayers who must pay the wealth tax each year. The Treasury must issue reporting rules within 12 months and can make banks and firms report ownership, control, and estimated values, using chapter 4 (FATCA) data. The bill would raise valuation penalties: a claimed value at 65% or less of correct value can trigger higher penalties, with no penalty unless the understatement causes more than $5,000 of tax underpayment. Penalty rates would be 30% for substantial understatements and 50% for gross misstatements.

New annual ultra‑millionaire wealth tax

If enacted, the bill would impose a new annual wealth tax on your worldwide net assets measured at year end. You would pay 0% on the first $50 million, 2% on amounts over $50 million up to $1 billion, and 3% on amounts over $1 billion (rising to 6% in years when a specified national health law is in effect). Married couples would be treated as one taxpayer. The bill would define what counts as taxable assets, tighten how trusts are treated, ban deducting the wealth tax from income tax, and let the Treasury allow up to five years to pay for severe liquidity problems. Rules and trust/bracket details would be written by the Treasury within 12 months.

Big IRS funding for enforcement

If enacted, the bill would authorize about $100 billion for the IRS over FY2027–FY2037 to run the wealth tax. That includes $70 billion for enforcement, $10 billion for taxpayer services, and $20 billion for business system modernization. These authorizations would let the Treasury seek funds to staff audits, improve taxpayer help, and modernize systems tied to the new tax.

Special rules for death and expatriation

If enacted, the bill would treat covered expatriates as ending their tax year the day before expatriation and would tax that final period at a 40% rate. For people who die during the year and are unmarried at death, the bill would compute the wealth tax as of the date of death and reduce the tax by the fraction of the year after death (days after death divided by 365). For estate tax rules, that prorated wealth tax is treated as imposed before death.

Sponsors & CoSponsors

Sponsor

Warren, Elizabeth [D-MA]

MA • D

Cosponsors

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 3/26/2026

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 3/26/2026

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 3/26/2026

  • Sen. Welch, Peter [D-VT]

    VT • D

    Sponsored 3/26/2026

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 3/26/2026

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 3/26/2026

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 3/26/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 3/26/2026

  • Sen. Schiff, Adam B. [D-CA]

    CA • D

    Sponsored 3/26/2026

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 3/26/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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