Make Billionaires Pay Their Fair Share Act

Who is affected and how:

• Very high‑net‑worth individuals and their tax advisors: directly targeted by the new wealth tax; face valuation obligations, information reporting, and heightened audit risk (IRS audits required for at least half of those taxpayers each year).
• IRS and federal tax enforcement: will receive automatic funding equal to 1% of wealth‑tax receipts to finance audits and enforcement but must scale up staffing and systems to implement valuation and compliance rules.
• Medicare beneficiaries and health providers: many Medicare enrollees gain coverage for dental, hearing, and vision; dentists, audiologists, optometrists/ophthalmologists, and certain clinics will be new or expanded Medicare providers subject to new payment schedules and limits.
• Low‑ and middle‑income families: receive an affordability rebate (2026) and may see larger premium tax credits under revised rules, plus expanded access to subsidized child care and early learning.
• Children and families with young children: benefit from a guaranteed child care entitlement and increased access to early learning services, subject to state plan participation and provider capacity.
• States, tribes, territories, and local governments: must prepare and submit plans, provide non‑Federal matching funds for child care programs, and comply with reporting, monitoring, and maintenance‑of‑effort rules; states must also ensure teacher salary floors, which could pressure state and local budgets even with federal grant support.
• Educators: full‑time public K–12 teachers stand to gain a $60,000 minimum base salary where implemented; collective bargaining and supplemental pay rules are preserved but adjusted to meet base requirements.
• Medicaid programs and direct care workforce: states that pursue the HCBS Improvement Program may receive higher FMAPs if they meet conditions; increased focus on workforce recruitment, training, and payment rate improvements will affect direct care workers and service recipients.
• Housing developers and low‑income renters: expect expanded federal funding for affordable housing through the large Housing Trust Fund authorization.

Broader implications and risks:

• Fiscal and budget impacts could be substantial and depend on how much wealth tax revenue is collected and on future appropriations tied to authorized programs.
• Administrative complexity is high: new taxes, entitlements, benefit expansions, state plan systems, reporting, and monitoring require major federal and state capacity increases.
• Legal risk: a direct federal wealth tax is likely to face court challenges on constitutional grounds, creating implementation uncertainty.
• State budget risk: matching requirements and teacher salary mandates may strain state and local finances if federal grants are insufficient, creating political and operational friction during rollout.