“To amend the Internal Revenue Code of 1986 to establish a wealth tax, and for other purposes.”
No CRS summary available for this bill.
This section establishes a new annual wealth tax (IRC subtitle B-1) on the net value of all taxable assets held by applicable taxpayers—individuals and non-qualified trusts (i.e., excluding qualified retirement trusts)—on the last day of the calendar year, with married individuals treated as one taxpayer. For individuals, the tax applies at tiered rates to net value exceeding the threshold amount (1,000 times the greater of $50,000 or the annually determined U.S. median household wealth): (1) 2% on amounts up to 10 times the threshold, (2) 4% on amounts up to 100 times the threshold, (3) 6% on amounts up to 1,000 times the threshold, and (4) 8% on amounts above 1,000 times the threshold; for trusts, a flat 8% rate applies to net value exceeding the threshold. Net value equals the fair market value of all taxpayer property (real or personal, tangible or intangible, worldwide)—including property includible in the taxpayer's gross estate and certain post-enactment gifts to minor family members—minus debts, excluding tangible personal property valued at $50,000 or less that is not held for business/investment or certain appreciating assets (e.g., collectibles, boats, aircraft, vehicles). Special attribution rules treat grantor trusts as owned by the grantor, allocate beneficiary trusts proportionally among beneficiaries, and aggregate trusts with substantially the same beneficiaries. The Secretary must issue regulations for implementation, including trust attribution, beneficiary interest documentation, and asset valuation rules within 12 months of enactment.