Sen. Bernie Sanders and Rep. Ro Khanna have introduced legislation that would impose a 5% annual tax on the net wealth of people and trusts worth more than $1 billion. The proposal, called the Make Billionaires Pay Their Fair Share Act, is not law. The Senate and House versions were referred to committees after they were introduced in March 2026.
Sanders’ office says 938 U.S. billionaires had a combined $8.2 trillion in wealth as of January 1, 2026. That figure comes from economists Emmanuel Saez and Gabriel Zucman, who estimated the proposal could raise about $4.4 trillion over 10 years. That is a projection based on assumptions about future wealth growth and tax avoidance, not guaranteed federal revenue.
The bill would direct funding toward programs that its sponsors say would help working families, including direct payments, expanded health coverage, housing, childcare, public-school teacher pay, and home-care services. Supporters describe the plan as a way to raise revenue from extreme wealth. Critics question how much it would collect and warn that avoidance and asset valuation could make it difficult to administer.
What the Proposed Tax Would Do
The legislation would create a 5% annual tax on net assets held by taxpayers whose net wealth exceeds $1 billion. Sanders and Khanna say people with net worth below that threshold would not pay the new tax.
The proposal also includes a $3,000 direct payment for each eligible person in households earning $150,000 or less. It would fund measures including Medicare dental, hearing and vision coverage, affordable housing, childcare, a $60,000 minimum salary for public-school teachers, and Medicaid home-care programs.
Those are provisions in proposed legislation. They would not take effect unless Congress passed the bill and it became law.
How the $4.4 Trillion Estimate Was Calculated
Saez and Zucman’s estimate assumes that billionaire wealth grows at roughly the pace of the economy over the next decade and that tax evasion or avoidance is limited. Their analysis uses a 10% avoidance assumption. Under those conditions, they estimate the tax would raise approximately $4.4 trillion over 10 years.
Other estimates are lower. The Tax Foundation says that using a 33% avoidance assumption would reduce estimated revenue to about $3.3 trillion. It also cites a separate estimate of roughly $2.3 trillion that accounts for existing tax avoidance and stronger behavioral responses.
These projections differ because they use different assumptions about how taxpayers might respond, how much wealth could be hidden or shifted, and how the tax could be enforced. The actual amount collected, if the proposal became law, cannot be known from these estimates alone.
Why Supporters Favor the Proposal
Sanders and Khanna argue the tax would raise money from the country’s wealthiest households while funding payments and public programs. Sanders’ office says the revenue would support health care, housing, childcare, teacher salaries and home-care services, among other priorities.
Supporters also argue that taxing billionaire wealth would address economic inequality. That is a policy argument in favor of the bill, not a finding that the tax would produce a particular social or economic result.
Questions Raised by Critics
Critics question whether the proposal could raise the amounts its supporters project. The Tax Foundation points to possible avoidance, changes in taxpayer behavior, valuation challenges and administrative complexity. It also says taxpayers could have incentives to keep reported wealth below the threshold.
These are concerns raised by the Tax Foundation’s analysis. The competing estimates are not official government revenue scores, and the final effects would depend on the bill’s design, enforcement and taxpayer responses.
What Happens Next
The Senate bill, S. 3956, was referred to the Senate Finance Committee. The House version, H.R. 7767, was referred to several committees, including Ways and Means. As of the latest available congressional records, neither version had become law.
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