- Sen. Bernie Sanders and Rep. Ro Khanna unveiled a billionaire wealth tax proposal on Monday.
- Under the plan, America’s roughly 1,000 billionaires would see a 5% tax on their wealth.
- Some of that money would pay for $3,000 checks for people in households making less than $150,000.
Bernie Sanders has a plan to tax the wealthiest people in America — and use it to send checks to Americans.
The Vermont senator, along with Democratic Rep. Ro Khanna of California, unveiled a bill on Monday that would enact a 5% annual wealth tax on America’s billionaires, which Sanders’s office estimates to be 938 people.
The legislation would raise $4.4 trillion over 10 years, according to an economic analysis by two economics professors at the University of California at Berkeley.
So what do Sanders and Khanna want to do with all of that money?
The flashiest proposal is a one-time, $3,000 direct payment to each American in households making $150,000 annually or less — meaning $12,000 for a family of four.
Beyond that, the duo also says they would use the revenue to:
- Fund recently expired ACA tax credits and reverse cuts to Medicaid made by the One Big Beautiful Bill Act;
- Expand Medicare to cover dental, vision, and hearing for seniors;
- Build, rehabilitate, and preserve over seven million affordable homes;
- Ensure families don’t spend more than 7% of their income on childcare;
- Establish a $60,000 minimum annual salary for public school teachers;
- Expand Medicaid home health care for seniors and people with disabilities;
In a press release, Sanders’s office specifically said that Elon Musk — the world’s richest man — would owe $42 billion in taxes in the first year.
The proposal is unlikely to become law, particularly given GOP control of Congress.
But it’s a proposal that could influence the course of Democratic politics over the next several years, particularly as the party looks to the 2028 presidential election.
While Sanders has indicated he won’t run for president again, Khanna may.
The wealth tax proposal also comes amid a debate over a proposed billionaire wealth tax in Khanna’s home state of California, which led to several billionaires relocating to other states.
