WASHINGTON, D.C. — Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Calif.) have introduced legislation that would impose a 5 percent annual wealth tax on the nation’s billionaires, aiming to raise an estimated $4.4 trillion over the next decade.
The proposal would apply to 938 U.S. billionaires who collectively hold about $8.2 trillion in wealth. Supporters say the revenue would fund direct payments of $3,000 in the first year to individuals in households earning under $150,000 annually. The plan would also reverse roughly $1.1 trillion in Medicaid and Affordable Care Act cuts enacted under President Trump’s One Big Beautiful Bill Act, expand Medicare to cover dental, vision, and hearing benefits, cap childcare costs at 7 percent of income, and set a $60,000 minimum salary for public-school teachers.
Sanders argued that the tax code allows billionaires to pay lower effective rates than average workers. Khanna described the measure as a response to what he called a “deep economic divide.”
The proposal would require congressional approval and would likely face legal scrutiny, as prior wealth tax efforts have prompted constitutional questions regarding direct taxation. No Republican lawmakers have signed on to the bill, and its path forward remains uncertain.
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