Bill > HR2912

This bill establishes a new wealth tax in the United States that applies to individuals and certain trusts with high net worth. The tax is calculated progressively based on the net value of taxable assets, with rates increasing from 2% to 8% depending on the total value of assets owned. The "threshold amount" for taxation is defined as $50,000 multiplied by 1,000, or the applicable median household wealth, whichever is greater. Individuals who are married will be treated as a single taxpayer, and the law includes complex rules for how assets in trusts are attributed to individuals. The Internal Revenue Service (IRS) will be required to annually audit at least 30% of taxpayers subject to this tax and will develop new regulations for valuing assets, especially those that are not publicly traded. The bill includes provisions for reporting asset information, allows extensions for tax payment in cases of severe liquidity constraints, and establishes penalties for undervaluing assets. Notably, the tax would apply to worldwide assets for U.S. citizens, with special rules for non-residents and individuals who renounce their citizenship. The wealth tax would take effect for calendar years beginning after the date of the bill's enactment.