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Bill

Bill

S 3956

Make Billionaires Pay Their Fair Share Act

119th Congress Introduced by Chris Van Hollen and 1 co-sponsor

Proposes annual federal tax on net asset holdings for wealthy taxpayers to increase revenue and address wealth inequality through direct wealth taxation.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 3956

Legislative bill overview

S 3956 proposes amending the Internal Revenue Code to implement an annual wealth tax on taxpayers based on their net asset holdings. This would represent a significant shift in U.S. tax policy, moving from primarily income-based taxation to direct taxation of accumulated wealth. The bill was introduced by Senator Bernie Sanders and is currently under review by the Senate Finance Committee.

Why is this important

A wealth tax would fundamentally change how the federal government collects revenue and could affect wealth inequality trends. The tax could generate substantial federal revenue while potentially influencing investment decisions, asset allocation, and economic behavior among high-net-worth individuals. This represents an ongoing policy debate about whether and how to tax accumulated capital versus earned income.

Potential points of contention

  • Valuation and enforcement challenges: Determining the annual net value of diverse assets (private businesses, art, real estate, intellectual property) is administratively complex and could create disputes with the IRS
  • Constitutional questions: Legal scholars debate whether a direct wealth tax on assets (rather than income or transactions) requires a constitutional amendment or conflicts with existing tax law
  • Economic impact concerns: Critics argue wealth taxes could discourage investment, capital formation, and entrepreneurship, while proponents counter they would reduce wealth concentration and fund public services
  • International competitiveness: Similar taxes in other countries (France, Sweden) have been repealed or limited, raising questions about capital flight and economic effects

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

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