Senator Bernie Sanders and Representative Ro Khanna have introduced legislation that would impose a 5% annual wealth tax on American billionaires. The 'Make Billionaires Pay Their Fair Share Act' targets individuals with a net worth of $1bn or more, of which there are an estimated 938 people in the US.
The bill, announced on Monday, is projected to raise $4.4tn over the next decade, according to an analysis by economists at the University of California, Berkeley. The revenue would be used to provide a $3,000 direct payment to every person in households earning $150,000 or less, expand Medicare to cover dental, vision and hearing for seniors, and build over 7 million affordable homes, among other measures.
The lawmakers cited prominent billionaires such as Elon Musk, who would owe $42bn under the tax, leaving him with approximately $792bn. Mark Zuckerberg would owe $11bn, and Jeff Bezos around $11bn. The legislation is unlikely to pass the Republican-controlled Congress but could influence the Democratic Party's 2028 presidential primary.
In California, a separate ballot measure proposes a one-time 5% tax on residents with net worth exceeding $1.1bn, with funds allocated to healthcare, education and food assistance. Governor Gavin Newsom opposes the measure, warning it could drive a 'race to the bottom' if implemented at the state level.
