Summary
Creates a new tax on the total assets of people with over $1 billion to pay for health care, housing, child care, and higher teacher salaries.
What problem does this solve?
Many of the wealthiest Americans pay a lower effective tax rate than working families, which increases inequality. This bill taxes extreme wealth to fund public services like health care, child care, and education for everyone.
Who does this affect?
- Billionaires
- Medicare beneficiaries
- Families with children
What does this bill do?
Creates a new wealth tax
Imposes a 5% annual tax on the net value of assets for any individual or trust holding more than $1 billion.
Provides affordability rebates to families
Issues payments of $3,000 for individuals, $6,000 for joint filers, and an additional $3,000 per dependent to help with living costs.
Expands medicare benefits
Adds coverage for dental, oral health, hearing, and vision care to the Medicare program for seniors and people with disabilities.
Reference
Text:
Section:
Title VII
Header:
Establishing a $60,000 a year minimum salary for every public school teacher
Sets a minimum teacher salary
Creates a grant program for states to ensure every public school teacher has a starting annual salary of at least $60,000.
Funds affordable child care
Establishes a new entitlement program to provide high-quality, affordable child care services for families with children under the age of six.
Increases funding for affordable housing
Authorizes over $85 billion per year for the Housing Trust Fund to help build and preserve affordable homes.
Strengthens tax enforcement on the wealthy
Requires the IRS to audit at least 50% of taxpayers who are subject to the new wealth tax each year.
Increases health insurance subsidies
Makes more people eligible for premium tax credits to buy health insurance by removing the 400% poverty level income cap.
Reference
Text:
Section:
Title VIII
Header:
Investments in home and community-based services and long-term care
Improves long-term care services
Invests in home and community-based services (HCBS) to help seniors and people with disabilities receive long-term care at home.
Creates a high tax for renouncing citizenship
Imposes a 60% tax rate on the assets of wealthy individuals who give up their U.S. citizenship to avoid the wealth tax.
What is the real world impact?
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Redistributes wealth to fund social safety nets
Uses revenue from a new tax on the ultra-rich to pay for broad public benefits like expanded Medicare, affordable child care, and higher teacher pay, aiming to reduce economic inequality.
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Could encourage tax avoidance
Wealthy individuals might move assets to other countries or use complex legal methods to hide their net worth, making it difficult for the IRS to collect the new tax.
When does this start?
The bill's many provisions take effect on different dates, with most major programs starting in 2026 or 2027.
Wealth tax
The new tax on assets over $1 billion applies to calendar years beginning after the bill is signed into law.
Affordability rebates
The new affordability rebates for individuals and families will begin in 2026.
Medicare dental, hearing, and vision
New Medicare benefits for dental, hearing, and vision care will start on January 1, 2028, with dentures covered starting January 1, 2027.
Child care program
The new child care and early learning entitlement program will begin on October 1, 2026.
Teacher salary grants
Funding for grants to increase teacher salaries is authorized to begin in fiscal year 2027.
Housing trust fund
Appropriations for the Housing Trust Fund are authorized for fiscal years 2026 through 2035.