Sponsors (46)
The bill pairs large investments in IRS modernization and enforcement and a new wealth tax to raise revenue and close tax gaps, at the trade‑off of higher compliance costs, greater audit activity and privacy concerns for taxpayers, and increased federal spending that could affect deficits.
Most taxpayers — faster, more accurate processing and better customer service from $20B to modernize IRS systems and $10B for taxpayer services, reducing delays and errors when filing and getting help.
Federal government / taxpayers — $70B in enforcement funding increases IRS capacity to audit and collect unpaid taxes, potentially raising federal revenue and reducing tax gaps.
High‑net‑worth taxpayers — an annual wealth tax would require wealthy individuals to pay tax on net wealth (not just income), shifting more tax burden onto the very wealthy.
Individuals and businesses — materially increased IRS enforcement capacity and funding makes audits, compliance checks, and tax collection actions more frequent, increasing interactions with the IRS.
Taxpayers and financial institutions — wealth‑tax compliance, new foreign‑reporting rules, appraisal and valuation requirements, and expanded recordkeeping raise advisory, appraisal, administrative, and IT costs for filers and intermediaries.
Wealthy taxpayers (and potentially those approaching thresholds) — the wealth tax is not deductible, increasing their effective tax burden compared with other taxes.
Based on analysis of 4 sections of legislative text.
Establishes a new federal wealth tax for high-net-worth individuals, adds valuation penalties and anti-abuse rules, allows limited payment deferrals, and authorizes major IRS funding.
Introduced March 25, 2026 by Pramila Jayapal · Last progress March 25, 2026
Creates an annual federal wealth tax on ultra-high-net-worth individuals starting with calendar years after December 31, 2026, and sets rules for valuation, penalties, deferrals, and anti-abuse enforcement. It also authorizes large, multi-year funding for IRS enforcement, taxpayer services, and modernization to administer and enforce the new tax. The bill requires Treasury to issue implementing rules within 12 months, allows limited payment deferrals for taxpayers with severe liquidity constraints, strengthens valuation-related penalties and anti-evasion rules for assets placed in foreign entities, and requires periodic Treasury reports to Congress on administration and enforcement.