“To amend the Internal Revenue Code of 1986 to impose a tax on the net value of assets of a taxpayer, and for other purposes.”
No CRS summary available for this bill.
This section imposes an annual wealth tax on the net value of an individual's taxable assets (real or personal, tangible or intangible, worldwide) as of the last day of the calendar year, with married couples (as defined in IRC §7703) treated as one taxpayer and net value calculated as the fair market value of such assets reduced by taxpayer debts. The tax equals (1) 0% of net assets up to the zero bracket threshold of $50 million; (2) 2% of net assets exceeding $50 million but not over the top bracket threshold of $1 billion; and (3) the applicable percentage of net assets exceeding $1 billion, which is 3% generally or 6% for any calendar year in which legislation is enacted to establish a universal health insurance program for all U.S. residents that prohibits duplicate private benefits. Nongrantor multibeneficiary trusts (i.e., nongrantor trusts with multiple beneficiaries, excluding qualified retirement, charitable, and certain remainder trusts) are treated as separate taxpayers, with their zero bracket threshold and 2% bracket width (up to $950 million) equal to unused portions of beneficiaries' brackets allocated via regulations (defaulting to $0 if unassigned).
This section (1) authorizes the Secretary of the Treasury to issue regulations preventing taxpayers from avoiding Internal Revenue Code information reporting requirements by placing assets in foreign corporations, partnerships, or trusts in which the taxpayer holds a significant interest as the sole or principal owner or beneficial owner, and (2) directs the Secretary to develop a comprehensive plan for leveraging data collected under chapter 4 of the Internal Revenue Code (i.e., Foreign Account Tax Compliance Act (FATCA)) in agency compliance efforts, including an evaluation of current enforcement actions' effects on voluntary compliance and noncompliance.
This section authorizes appropriations to the Secretary of the Treasury for the Internal Revenue Service (IRS) for FY2027 through FY2037 as follows: (1) $70 billion for enforcement of the Internal Revenue Code; (2) $10 billion for taxpayer services; and (3) $20 billion for business systems modernization.