As wealth taxes gain traction, Warren proposes levy on the ultra-rich
CBS News • • nation
Key Points:
- Senator Elizabeth Warren is introducing the Ultra-Millionaire Tax Act of 2026, proposing a 2% annual tax on net worth over $50 million and an additional 1% for billionaires, aiming to raise $6.2 trillion over the next decade.
- The bill includes a 40% exit tax on individuals worth over $50 million who renounce U.S. citizenship to prevent tax avoidance and reflects increased wealth concentration among the ultra-rich since Warren's 2021 proposal.
- The legislation has support from multiple Democratic senators and representatives but faces slim chances of passing in a divided Congress, amid growing state-level wealth taxes in places like Massachusetts, California, Washington, and New York City.
- Revenue from the wealth tax could fund social programs such as affordable childcare, universal paid family leave, tuition-free community college, and lowering Medicare eligibility age to 55, addressing economic inequality and affordability challenges.
- Research suggests that wealthy individuals are less likely to relocate to avoid taxes than commonly believed, and strong federal enforcement could reduce tax evasion, with an estimated 260,000 U.S. households subject to the proposed tax.
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