WeVote
Log In

Bill

Bill

S 4246

Ultra-Millionaire Tax Act of 2026

119th Congress Introduced by Tammy Duckworth and 10 co-sponsors

Bill proposes annual federal wealth tax on high-net-worth taxpayers' total assets to raise revenue and address wealth inequality.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 4246

Legislative bill overview

S 4246 proposes amending the Internal Revenue Code to impose a federal tax on the net asset value of high-wealth taxpayers. The bill was introduced by five Democratic senators and referred to the Senate Finance Committee, where it remains under consideration.

Why is this important

Wealth taxes directly target accumulated assets rather than income, potentially addressing wealth inequality by taxing the ultra-wealthy annually on their total net worth. The revenue generated could fund federal programs, though implementation raises complex questions about valuation, enforcement, and economic effects that have made wealth taxes controversial globally.

Potential points of contention

  • Valuation challenges: Determining fair market value of illiquid assets (private businesses, real estate, art) requires subjective appraisals and creates disputes with the IRS
  • Constitutional concerns: Critics argue a direct wealth tax may violate the 16th Amendment's income tax limitation without a constitutional amendment
  • Capital flight and economic effects: Wealthy individuals or businesses may relocate to other jurisdictions, potentially reducing the tax base and affecting investment and employment
  • Administrative burden: Tracking and taxing net worth annually requires substantial IRS resources and compliance complexity for taxpayers
  • Historical precedent: Most countries that implemented wealth taxes (France, Sweden, Denmark) have repealed them due to high administrative costs relative to revenue collected

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.