Sponsors (48)
The bill aims to raise revenue and strengthen tax enforcement and IRS capacity—potentially improving services and reducing avoidance—but does so at the cost of higher compliance burdens, privacy and penalty risks, and implementation and fiscal pressures that could fall on taxpayers, banks, and the IRS.
High-net-worth taxpayers and the federal government: a new annual wealth tax plus tougher foreign-income rules and increased enforcement funding are likely to raise federal revenue and reduce tax avoidance.
All taxpayers and IRS staff: $20B for IRS business-system modernization and $10B for taxpayer services should improve processing speed, reduce errors, and increase IRS responsiveness.
Taxpayers with illiquid assets: the ability to delay wealth-tax payments up to five years for severe liquidity constraints or hardship reduces the risk of forced asset sales and short-term financial distress.
Individuals, businesses, and banks: many taxpayers and financial institutions will face substantially higher compliance, valuation, and reporting costs (appraisals, audits, filings) from the wealth tax, stricter foreign rules, and expanded enforcement.
Taxpayers and small businesses: the large increase in enforcement funding and tougher rules will likely lead to more audits and collection actions, increasing burdens and stress for individuals and small firms.
Taxpayers facing valuation disputes: steeper accuracy-related penalties and the disallowance of deductions for wealth taxes raise the financial risk of contested valuations and increase potential monetary exposure.
Based on analysis of 4 sections of legislative text.
Imposes a new annual federal wealth tax on ultra-wealthy individuals, tightens valuation penalties and anti-evasion rules, allows limited payment deferrals, and authorizes $100B in IRS funding (2027–2037).
Introduced March 25, 2026 by Pramila Jayapal · Last progress March 25, 2026
Creates a new federal annual wealth tax on ultra-high-net-worth individuals, adds new valuation penalties and anti-evasion powers, disallows deductions for the new tax, and funds a major expansion of IRS enforcement and modernization. The bill lets the Treasury delay payments up to five years for taxpayers with severe liquidity problems, requires new Treasury rules and reports to Congress, and authorizes $100 billion in IRS funding across fiscal years 2027–2037 targeted to enforcement, taxpayer services, and systems modernization.