As wealth taxes gain traction, Warren proposes levy on the ultra-rich
Senator Elizabeth Warren is leading the charge on a new bill aimed at implementing wealth taxes in the U.S. The Ultra-Millionaire Tax Act of 2026 proposes a 2% annual tax on households and trusts with a net worth over $50 million, along with an additional 1% tax on billionaires. To prevent the ultra-rich from avoiding the tax by renouncing their American citizenship, the bill also includes a 40% “exit tax” for those worth more than $50 million.
This bill, similar to one introduced by Warren in 2021, is projected to raise $6.2 trillion over the next decade. This estimate has increased due to the skyrocketing wealth of the country’s billionaires. As of September, the 905 billionaires in the U.S. had a combined worth of $7.8 trillion, a 25% increase from the previous year.
“My bill is about basic fairness and making the ultra-wealthy pay their fair share,” Warren stated. The legislation has garnered support from 10 Democratic co-sponsors in the Senate and 39 co-sponsors in the House.
Wealth taxes across the U.S.
While the bill may face challenges passing in Congress, some states have successfully implemented taxes on the wealthy. Massachusetts, for example, passed a law in 2023 applying a 4% tax to individuals earning over $1 million. California may also vote on a billionaire tax this year, while Washington state and New York City have introduced similar measures.
A majority of Americans support higher tax rates on households with incomes over $400,000, according to a 2025 poll by the Pew Research Center. Despite this, the tax system in the U.S. has favored the wealthy, with the richest Americans paying a lower effective tax rate than other taxpayers.
What $6.2 trillion could pay for
The revenue generated from Warren’s wealth tax could fund various social services, including affordable childcare, paid family leave, tuition-free community college, and lowering the Medicare eligibility age to 55. This would address healthcare affordability issues for older workers.
Would the ultra-wealthy flee the U.S.?
One concern with wealth taxes is the potential for affluent individuals to relocate to lower-tax jurisdictions. However, research suggests that millionaires are less likely to move than lower-income individuals. Strong federal enforcement through audits and information reporting could help prevent tax evasion by the wealthiest households.
