Bernie Sanders and Ro Khanna Propose Billionaire Wealth Tax Legislation

On March 2, 2026, Senator Bernie Sanders (I-Vermont) and Representative Ro Khanna (D-California) introduced a new legislative proposal titled the "Make Billionaires Pay Their Fair Share Act." This legislation aims to impose a 5% annual wealth tax on approximately 938 billionaires in the United States, targeting individuals with a net worth of $1 billion or more. The proposal is projected to generate $4.4 trillion in revenue over the next decade, according to an analysis by economists at the University of California, Berkeley.

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The revenue generated from this wealth tax is intended to fund various initiatives aimed at improving the lives of American families. Notably, the bill proposes a direct payment of $3,000 to every individual in households earning $150,000 or less, amounting to $12,000 for a family of four in its first year. Additionally, the funds would be allocated to expand Medicare to cover dental, vision, and hearing services for seniors, as well as to build and rehabilitate over 7 million affordable homes.

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The legislation specifically outlines the tax liabilities for some of the wealthiest individuals. For instance, Elon Musk would owe approximately $42 billion, leaving him with an estimated net worth of $792 billion. Similarly, Mark Zuckerberg and Jeff Bezos would owe around $11 billion each based on their respective net worths of $220 billion and $218 billion.

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While the proposal is unlikely to pass in the current Republican-controlled Congress, it is expected to influence the Democratic primary for the 2028 presidential election, similar to how Sanders's Medicare-for-all plan shaped the 2020 cycle. The wealth tax could serve as a litmus test for candidates, determining their stance on wealth redistribution and economic inequality.

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In California, a parallel effort is underway to impose a one-time 5% tax on residents with a net worth exceeding $1.1 billion, aimed at funding healthcare, education, and food assistance. However, Governor Gavin Newsom has expressed opposition to such wealth taxes, arguing that they could lead to detrimental economic consequences at the state level.

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The wealth tax proposal has faced criticism, particularly from Governor Newsom, who has stated he will "fight" against the measure if it advances. He believes that state-level wealth taxes could initiate a "race to the bottom," undermining economic stability. Additionally, Khanna has indicated that he supports provisions allowing startup founders to defer taxes until a liquidity event occurs, addressing concerns about the impact on emerging businesses.

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• “the legislation would raise $4.4tn over the next decade” — Bernie Sanders, Senator

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• “In its first year, the bill would provide a $3,000 direct payment to every man, woman and child in a household making $150,000 or less – $12,000 for a family of four – and use the estimated $4.4 trillion in revenue raised over the next decade to address the most pressing crises facing working families” — Ro Khanna, Representative

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• “if implemented at a state-only level they drive a race to the bottom” — Gavin Newsom, Governor of California

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This proposed legislation by Sanders and Khanna marks a significant moment in the ongoing debate over wealth inequality in the United States, setting the stage for future discussions in the political arena.

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