As wealth taxes gain traction, Warren proposes levy on the ultra-rich

As wealth taxes gain traction around the U.S., Sen. Elizabeth Warren is introducing a new bill that the Massachusetts Democrat said would raise trillions in federal revenue by placing new levies on people worth over $50 million.  Edited by Alain Sherter In:

As wealth taxes gain traction around the U.S., Sen. Elizabeth Warren is introducing a new bill that the Massachusetts Democrat said would raise trillions in federal revenue by placing new levies on people worth over $50 million. 

The bill, called the Ultra-Millionaire Tax Act of 2026, would impose an annual 2% tax on the net worth of households and trusts over $50 million, and an additional 1% tax on the wealth of billionaires. To deter the ultra-rich from leaving the U.S. to avoid the new tax, the bill also proposes a 40% "exit tax" on anyone worth more than $50 million who renounces their American citizenship. 

The bill is similar to one that Warren introduced in 2021. Since then, the fortunes of America's wealthiest families have soared, while millions of low- and middle-income families continue to face an affordability crunch.

Warren's bill would raise $6.2 trillion over the next decade, or more than double the amount that was forecast when Warren proposed her 2021 wealth tax, according to a new analysis by University of California, Berkeley, economists Emmanuel Saez and Gabriel Zucman, who are renowned for their work on economic inequality. 

The higher estimate is due to the rising wealth of the country's richest families. As of September, the nation's 905 billionaires were worth a combined $7.8 trillion, an increase of more than 25% from a year earlier, according to the progressive Institute for Policy Studies.