Our nation’s top 1% owned nearly one-quarter of all U.S. household wealth 30 years ago. It now owns about 31%. Meanwhile, the poorest 50% of U.S. households have gone from 3.7% wealth in 1989 to about 2.5% of the nation's total wealth today. The richest 0.1% of U.S. households hold about 14% of our country's total wealth, according to 2025 data. Many people believe our wealthy do not pay their fair share of taxes. A wealth tax would remedy this situation by taxing an individual's net wealth - or the market value of their total owned assets minus liabilities. A wealth tax is in addition to a tax on income, and is similar to a property tax people pay on homes, but applied to all their wealth above a certain level. It would be a new federal tax, as property taxes are imposed at the local level, and estate taxes, while on wealth, are only imposed at death.

Currently, there is no federal wealth tax in the United States. One proposal suggests a 2% annual tax on wealth over $50 million and 3% on wealth over $1 billion. Supported by two-thirds of all Americans, advocates claim it would affect about 70,000 taxpayers and would raise $2.7 trillion in revenue over 10 years. Supporters say middle-class America could receive considerable benefits from a wealth tax such as universal child care, free college tuitions, Medicare for all, and meaningful actions mitigating climate change.

Pending legislation: H.R.2912 - Oligarch Act of 2025
Sponsor: Rep. Summer Lee (PA)
Status: House Committee on Ways and Means
Chair: Rep. Jason Smith (MO)