April 15, 2026
Mr. Vargas introduced the following bill; which was referred to the Committee on Ways and Means
To impose a one-time tax on the amount in excess of $10,000,000 of the net worth of certain individuals and trusts.
Section 1. Short title
This Act may be cited as the Donald J. Trump Wealth Tax Act of 2026
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Sec. 2. Findings
Congress finds the following:
(1)
In 1999, then presidential candidate Donald J. Trump said the following on Good Morning America regarding his wealth tax plan: If I were president, it would be passed. I think if somebody else is president, it probably can’t be . . . This is a tax paid by 1 percent, but the 1 percent will be very big beneficiaries with what’s going to happen and the positive forces that would take place in the economy.
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(2)
In an interview with Sean Hannity on Fox News in 2015, then presidential candidate Trump described his 1999 wealth tax plan as a very conservative thing to do.
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(3)
The proposed tax plan, according to then presidential candidate Trump, was expected to raise $5.7 trillion and pay off the national debt in its entirety at the time.
(4)
Many prominent analysts and conservatives have argued that reducing the national debt is crucial for our economic health and prosperity:
(A)
According to the Cato Institute, the U.S. is running $2 trillion deficits (more than 6 percent of GDP) with nearly $30 trillion in debt held by the public.
(B)
As Senate Majority Leader John Thune stated in an interview given in January of 2025, I would like to see us as a nation do things that affect the long-term stability, future of our kids and our grandkids . . . We’re in a fiscal mess, $36 trillion in debt.
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(C)
As Elon Musk stated in September of 2024 in a podcast appearance, We're adding a trillion dollars to our debt, which our kids and grandkids are going to have to pay somehow . . .
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(D)
According to the GOP Platform in 2016, Our national debt is a burden on our economy and families. The huge increase in the national debt demanded by and incurred during the current Administration has placed a significant burden on future generations. We must impose firm caps on future debt, accelerate the repayment of the trillions we now owe in order to reaffirm our principles of responsible and limited government, and remove the burdens we are placing on future generations. A strong economy is one key to debt reduction, but spending restraint is a necessary component that must be vigorously pursued.
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(5)
Since the beginning of the Global War on Terror, the overseas operations in Iraq and Afghanistan, as well as other War on Terror-related activities, have added more than $2 trillion to the national debt (according to figures by the Congressional Research Service and the Congressional Budget Office).
(6)
The One Big Beautiful Bill
is projected to add more than $3 trillion to our national debt (according to the Congressional Budget Office).
(7)
If the Donald J. Trump Wealth Tax raises the $5.7 trillion that President Trump expected it would in 1999, it would reduce the debt-to-GDP ratio from an estimated 101 percent to 83 percent (according to the Congressional Research Service).
Sec. 3. Donald J. Trump Wealth Tax
(a) Tax imposed
In the case of any applicable taxpayer, there is hereby imposed a tax equal to 14.25 percent on the excess (if any) of—
(1)
the net worth of such taxpayer (determined as of the date of the enactment of this Act), over
(2)
$10,000,000.
(b) Applicable taxpayer
For purposes of this section—
(1) In general
The term applicable taxpayer means—
(A)
an individual who is a citizen or resident of the United States,
(B)
the nongrantor portions of any domestic trust, or
(C)
the nongrantor portions of any foreign trust which are properly allocable to one or more beneficiaries who are citizens or residents of the United States.
(2) Nongrantor portions
The term nongrantor portions means the portions of any trust not treated as owned by any individual under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code of 1986.
(c) Net worth
For purposes of this section—
(1) In general
The term net worth means the fair market value of all assets as of the date of the enactment of this Act, minus the value of—
(A)
any bona fide liabilities, and
(B)
in the case of an individual—
(i)
the principal residence of such individual (within the meaning of section 121 of the Internal Revenue Code of 1986), and
(ii)
any acquisition indebtedness (as defined in section 163(h)(3)(B) of such Code) with respect to such residence.
(2) Special rule for grantor portions
The portions of any trust treated as owned by any individual under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code of 1986 shall be taken into account in determining the net worth of such individual.
(d) Regulations
The Secretary of the Treasury shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including to provide for proper allocations under subsection (b)(1)(C).
(e) Application of certain rules
For purposes of subtitle F of the Internal Revenue Code of 1986 (relating to procedure and administration), the tax imposed under this section shall be treated as a tax imposed under subtitle D of such Code.