According to a summary of the bill released by the Patriotic Millionaires—an advocacy group that helped craft the measure—the wealth tax would have four brackets:
- 2% for all wealth between 1,000 and 10,000 times median household wealth;
- 4% for all wealth between 10,000 and 100,000 times median household wealth;
- 6% for all wealth between 100,000 and 1,000,000 times median household wealth; and
- 8% for all wealth over 1,000,000 times median household wealth;
"In the unlikely event median household wealth fell below $50,000 from its current level of about $120,000, the thresholds would be fixed at $50 million, $500 million, $5 billion, and $50 billion respectively.”
The legislation would also require at least a 30% IRS audit rate on households affected by the new wealth tax.
My understanding is that this would be x% of your total wealth, which is much more reasonable.
So you would pay an extra 2% of your total worth every year. So at a billion that’s 20 million, at 980 million 19 million and change, etc.
The numbers could be much higher, but this is a lot of funds. It also would take several generations for the inheritance to drop below “you’ll never spend this” to just “you can live on the interest”. Even with zero interest on their investments (which is absurd - so really this would more be a source of funds than anything). At least it would be a starting point