Warren’s Wealth Tax Plan Targets Fortunes Over $50 Million

Massachusetts U.S. Senator Elizabeth Warren has proposed the Ultra-Millionaire Tax of 2026, hoping to raise trillions of dollars in new federal tax revenue from folks worth more than $50 million.

What Is the Ultra-Millionaire Tax Plan?

CBS News reported, "The bill, called the Ultra-Millionaire Tax Act of 2026, would impose an annual 2 percent tax on the net worth of households and trusts over $50 million, and an additional 1 percent tax on the wealth of billionaires."

According to Warren's website, "To deter the ultra-rich from leaving the U.S. to avoid the new tax, the bill also proposes a 40 percent 'exit tax' on anyone worth more than $50 million who renounces their American citizenship."

How Much Revenue the Plan Could Generate

A Warren press release said the proposed tax would "generate $6.2 trillion in revenue over the next decade, more than double the score of the bill when it was first introduced five years ago, and enough money to pay for investments like universal child care, free community college, Medicare expansion, and more – without raising taxes on 99.85 percent of American households."

"While multi-millionaires and billionaires are getting richer and richer, families are getting squeezed by a rigged economy," the statement read. "My bill is about basic fairness and making the ultra-wealthy pay their fair share."

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How State-Level Wealth Taxes Compare

Warren's national legislation comes as states, including Massachusetts, impose or consider new wealth taxes of their own. The Massachusetts Legislature adopted a Millionaire's Tax in 2024, which voters approved in a referendum.

Some analysts believe the tax may, in part, be the reason many are leaving the state.

Other States Considering Similar Taxes

CBS News reported California is currently considering adopting a tax on billionaires.