Make Billionaires Pay Their Fair Share Act

Summary of HR 7767 – Make Billionaires Pay Their Fair Share Act

• Purpose and intent

  • Proposes a new wealth tax targeting the net value of assets held by high-net-worth individuals and trusts, paired with several companion reforms across health care, housing, education, and workforce policies. The central idea is to impose an annual tax on wealth above a specified threshold and use revenues to fund various social programs and affordability measures.

• Key provisions and changes

  • Title I: Wealth Tax
  • Creates a new wealth tax (Subtitle B–1, Chapter 18) on net asset value.
  • Tax rate: 5% of the net value of assets for an applicable taxpayer in a calendar year.
  • Applicability threshold: Applies to individuals or trusts with net assets exceeding $1 billion for the calendar year.
  • Inflation adjustment: Threshold increases annually based on the cost-of-living adjustment; rounding rules apply to the nearest $1,000,000.
  • Married filing jointly treated as one taxpayer for the wealth tax.
  • Net value defined as the market value of assets minus debts as of year-end (debt does not reduce asset value for purposes of the calculation). Includes rules for valuing hard-to-value assets and related special valuation methods.
  • Special rules for nonresidents and expatriates, including a 60% rate for certain covered expatriates and domestic asset rules for nonresidents.
  • Administration: Establishes a wealth registry and reporting requirements for asset types (bank accounts, publicly traded securities, private businesses, real estate, etc.). Provides for IRS enforcement provisions and penalties for failure to file information.
  • Payment timing: Returns due with the same timeline as the corresponding income tax return when the wealth tax year ends December 31.
  • Title II: Affordability Rebate
  • Replaces 2021 Recovery Rebate language with a new “Affordability rebates” program.
  • Rebates are structured as a base amount plus per-dependent amounts:
    • Base: $3,000 for individuals or $6,000 for joint returns.
    • Plus: $3,000 per dependent.
  • The rebates are intended to help households offset costs associated with the broader package.
  • Title III: Health Care Provisions (reconciliation provisions repealed; premium tax credits expanded)
  • Repeals certain reconciliation health provisions, with exceptions for specific sections.
  • Increases premium tax credit eligibility for more households by adjusting income thresholds and sliding-scale premium subsidies.
  • Title IV: Medicare Dental, Hearing, and Vision Expansion
  • Expands Medicare coverage to include dental and oral health services, hearing care, and vision services, with detailed coverage rules and provider requirements.
  • Establishes a comprehensive definition of dental/oral health services and authorizes a new payment framework (fee schedules, 80-85% payment shares, and annual updates tied to CPI with productivity adjustments).
  • Introduces temporary and transitional payment adjustments, rural provider incentives, and new Medicare administrative contractors to implement the expanded benefits.
  • Adds hearing aids and vision services to Medicare coverage, with limitations on frequency, prescription requirements, and competitive procurement considerations.
  • Addresses eye glasses coverage, including restrictions and pricing based on 2021 Federal Supply Schedule, and expands vision-related services under Medicare.
  • Title V–VII: Housing, Child Care, and Public School Teacher Salary
  • Title V: Housing Trust Fund authorization of $85.647 billion/year for 2026–2035.
  • Title VI: Affordable child care entitlement for birth through age five, with eligibility and work-activity requirements for families.
  • Title VII: Establishes a $60,000/year minimum salary for every public school teacher, plus related collective bargaining and workforce rules.
  • Title VIII: HCBS and Long-Term Care Initiatives
  • Investments in home- and community-based services (HCBS), quality improvement, and workforce development.
  • Includes protections against spousal impoverishment for HCBS recipients and program investments to support HCBS expansion.

• who/what would be affected

  • High-net-worth individuals and certain trusts (wealth tax implementation, valuation, and reporting requirements).
  • Taxpayers eligible for expanded premium tax credits and health care subsidies under the Medicare expansion.
  • Medicare beneficiaries, dental/vision/hearing service recipients, and providers (via new coverage, payment rules, and administrative changes).
  • Public school teachers (salary floor), families seeking affordable child care, and workers benefiting from HCBS investments.
  • Rural health providers and safety-net facilities through incentives and new administrative arrangements.

• Procedural and timeline notes

  • Effective dates generally target calendar years after enactment for wealth tax and health provisions.
  • Title IV expansions specify implementation guidance for 2028–2029, with phased-in payment rules and temporary rate adjustments.
  • Funding and implementation provisions include startup appropriations (e.g., $900 million to HHS for FY 2026 for expansion-related implementation; additional ongoing HCBS funding and housing fund authorizations).

This bill represents a broad, policy-wide package centered on a wealth tax, expanded health coverage, and large-scale investments in housing, child care, education, and long-term care.