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Sanders, Khanna File 5% Billionaire Wealth Tax With $4.4 Trillion Plan

With Republicans running Congress, the filing functions largely as a messaging push that thrusts the billionaire-tax fight onto the national stage.

Overview

  • The Make Billionaires Pay Their Fair Share Act would levy a 5% annual tax on net worth above $1 billion, affecting about 938 Americans collectively worth $8.2 trillion.
  • An analysis by economists Emmanuel Saez and Gabriel Zucman pegs the 10-year haul at about $4.4 trillion, which sponsors pair with detailed outlays.
  • In its first year the plan provides a $3,000 payment to every person in households earning $150,000 or less, plus proposals to expand Medicare benefits, reverse $1.1 trillion in Medicaid/ACA cuts, build or preserve over 7 million affordable homes, cap childcare costs at 7% of income, and set a $60,000 minimum salary for public-school teachers.
  • Sponsor materials estimate Elon Musk would owe $42 billion in year one, with Mark Zuckerberg and Jeff Bezos at roughly $11 billion each under the 5% levy.
  • Passage faces long odds in the Republican-led Congress, and critics cite valuation, liquidity and constitutional hurdles as the effort also energizes related state battles such as California’s proposed 5% billionaire tax.