Sanders and Khanna Introduce Legislation to Tax Billionaire Wealth and Invest in Working Families

Sen. Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), and Rep. Ro Khanna (D-Calif.) today introduced the Make Billionaires Pay Their Fair Share Act, legislation that would establish a 5% annual wealth tax on the 938 billionaires in America — who are now collectively worth $8.2 trillion. In its first year, the bill would provide a $3,000 direct payment to every man, woman and child in a household making $150,000 or less — $12,000 for a family of four — and use the estimated $4.4 trillion in revenue raised over the next decade to address the most pressing crises facing working families.

“At a time of unprecedented income and wealth inequality, this legislation demands that the billionaire class in America finally pay their fair share of taxes so that we can create an economy that works for all of us, not just the 1%,” Sanders said. “We can no longer tolerate a corrupt tax code that enables billionaires to pay a lower tax rate than the average worker. In a democratic society, we cannot tolerate 60% of our people living paycheck to paycheck — struggling to pay for housing, food and health care — while 938 billionaires have become $1.5 trillion richer. We cannot continue a trend in which, over the past 50 years, $79 trillion in wealth in our country has been redistributed from the bottom 90% to the top 1%. Enough is enough. Billionaires cannot have it all. It is time to enact a wealth tax on billionaires and use this revenue to address some of the major crises facing working families, the children, the elderly, the sick and the most vulnerable.”

“We have a deep economic divide in this country. On one side, places like Silicon Valley are generating extreme wealth. On the other side, families are struggling to cover the cost of health care, housing, and basic needs. We can tax billionaires a modest amount to make sure everyone has a fair chance while keeping our innovative engine. That is why I am proud to join Senator Bernie Sanders to lead the Make Billionaires Pay Their Fair Share Act,” Khanna said.

The Make Billionaires Pay Their Fair Share Act would establish a 5% annual wealth tax on just 938 billionaires in America who are now worth $8.2 trillion. No one who has a net worth of less than $1 billion would pay a penny more in taxes under this bill. According to an analysis by economists Emmanuel Saez and Gabriel Zucman, the legislation would raise $4.4 trillion over the next decade.

The bill would use revenue from the wealth tax to:

• Provide a $3,000 direct payment to every man, woman and child in a household making $150,000 or less — $12,000 for a family of four
• Reverse the $1.1 trillion in Medicaid and Affordable Care Act cuts in Trump's so-called "Big Beautiful Bill," which are estimated to cause more than 50,000 unnecessary deaths
• Expand Medicare to cover dental, vision and hearing for millions of seniors
• Build, rehabilitate and preserve over seven million affordable homes to eliminate the affordable housing gap and end homelessness
• Ensure no family pays more than 7% of their income on childcare
• Establish a $60,000 minimum annual salary for every public school teacher in America
• Expand Medicaid home health care for seniors and people with disabilities

Under the bill, Elon Musk — worth $833 billion and now wealthier than the bottom 53% of American households combined — would owe $42 billion in taxes, leaving him with approximately $792 billion. Mark Zuckerberg, worth $220 billion, would owe $11 billion. Jeff Bezos, worth $218 billion, would owe approximately $11 billion.

Read the bill text here.

Read a summary here.

Read the economic analysis here.