WA Rep. Jayapal co-sponsors ‘Ultra-Millionaire’ tax on nation’s wealthiest households
Washington Rep. Pramila Jayapal announced Monday that she will be co-sponsoring a bill in Congress to levy a 2% annual tax on America’s wealthiest households.
Dubbed the “Ultra-Millionaire” tax and also sponsored by Rep. Brendan Boyle (D-PA) and Sen. Elizabeth Warren (D-MA), it would apply the 2% yearly levy to households with a net worth between $50 million and $1 billion. Households with a net worth over $1 billion would be subject to an additional 1% surcharge, totaling a 3% overall tax.
The proposal is expected to bring in $3 trillion over the next decade, and would not apply to 99.95% of Americans.
“The Ultra-Millionaire Tax Act will help level the playing field, narrow the racial wealth gap, ensure the wealthiest finally begin to pay their fair share, and invest trillions of dollars into our communities so we can make a real difference in the lives of people across America,” Jayapal said in a written release.
The hope is to also put a $100 billion into increased resources for the IRS in service of the tax, with that money funding new asset valuation tools, boosting resources for hiring and training, and more.
Explaining the reasoning behind the proposal, the bill’s sponsors point to data that indicates “the richest top 0.1% has seen its share of American wealth nearly triple from 7% to 20% between the late 1970s and 2019, while the bottom 90% has seen its share of wealth plummet from about 35% to 25%.”
This comes while Washington state has prioritized higher taxes on its wealthiest residents during its own legislative session. That includes a proposed 1% tax on the state’s billionaires, exempting their first billion dollars in assets. According to the Washington Department of Revenue, there are 100 state residents who would potentially qualify.