Ultra-Millionaire Tax Act of 2024
If enacted, HB 7749 would have profound implications on federal tax policy, particularly affecting high-asset individuals and the structures they use to manage their wealth, such as trusts. It aims to enhance tax compliance measures through increased information reporting requirements for the wealthy, aiming to close loopholes and ensure comprehensive asset valuation. By establishing rigorous auditing practices, the bill may lead to heightened scrutiny of high-net-worth individuals and entities, potentially reshaping how wealth is taxed in the United States, with an overarching goal of fostering a more equitable fiscal environment.
House Bill 7749, titled the ‘Ultra-Millionaire Tax Act of 2024’, proposes the imposition of a wealth tax on individuals with a net value of taxable assets exceeding $50 million. The bill seeks to amend the Internal Revenue Code of 1986, establishing a new chapter focused on creating a tiered tax system for ultra-wealthy individuals based on their total assets. The tax structure includes a base rate of 2% on net assets above the threshold, increasing to 3% or more based on the value of taxable assets, thereby providing a significant source of revenue aimed at addressing economic inequality and funding public services.
Notably, the bill has stirred controversy, with some arguing it may deter investment and impede economic growth. Opposition primarily stems from concerns regarding the extent of the government's control over individual wealth and potential negative impacts on those who might redistribute their assets in response to avoid taxation. Furthermore, proponents counter that the wealth tax is a necessary measure to address systemic inequality, reiterating the bill's intent to use the revenue for essential public goods and social programs.