Washington, D.C. – A fresh push is underway in Washington to tax the fortunes of the country’s richest households, as Oregon Sen. Jeff Merkley joined more than 45 lawmakers in reintroducing the Ultra-Millionaire Tax Act, a proposal supporters say could raise trillions of dollars while leaving nearly all Americans untouched.
Backers of the bill say the measure is aimed at a widening divide in which the wealthiest Americans continue to accumulate enormous fortunes while many families face stubborn costs for housing, health care, child care and education.
Read also: Oregon steps up Medicaid fraud crackdown with new case against Portland-area provider
Under the proposal, only the top 0.15% of households, about 260,000 of the wealthiest in the nation, would be subject to the tax.
“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,” Merkley said.
“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.” He described the bill as a direct way to help rebalance the economy and support investments in health care, housing, education and good-paying jobs.
Read also: Oregon partners bring smoke preparedness training to Ashland as wildfire concerns rise
The legislation would place a 2% annual tax on net worth above $50 million for households and trusts. For fortunes exceeding $1 billion, it would add another 1% surtax, bringing the total annual tax rate on wealth above that threshold to 3%.
The measure also includes provisions designed to prevent tax avoidance, including $100 million in additional IRS funding and a 40% exit tax on the wealth of ultra-millionaires and billionaires who give up U.S. citizenship in an effort to avoid paying.
Read also: Volunteers needed as Klamath Falls Little League sets annual cleanup day for April 11
Supporters are pointing to a new analysis that estimates the plan would generate about $6.2 trillion over the next decade. They argue that kind of revenue could reshape the federal government’s ability to fund major domestic programs without increasing taxes on 99.85% of households.
According to lawmakers promoting the bill, that money could cover a broad package of family-focused investments, including universal affordable child care, millions of new homes to reduce rent pressures, an expanded Child Tax Credit to cut child poverty, a lower Medicare eligibility age of 55, universal paid family leave and tuition-free community college.
The bill is being led by Sen. Elizabeth Warren of Massachusetts and has drawn its largest level of congressional support so far. It is backed by 10 senators and more than 39 members of the House, along with nearly 40 unions, advocacy groups and national organizations. Supporters say the renewed proposal is meant to keep pressure on Congress to confront wealth inequality as families continue to feel financial strain.
