Ultra-Millionaire Tax Act

Wealthy crypto investors with total net worth exceeding $50 million would have their cryptocurrency holdings counted as taxable assets under the wealth tax. Crypto valuations fluctuate wildly, creating the possibility that someone owes tax based on a year-end snapshot that doesn't reflect their actual ability to pay. The Treasury would establish new valuation rules that could impose formulaic methods for pricing these volatile assets.

Ultra-wealthy homeowners would have the full value of their real estate — including primary residences, vacation homes, and investment properties — counted toward their taxable net worth. For those above the $50 million threshold, high-value real estate holdings directly increase their annual tax bill. There is no homestead exemption or special treatment for a primary residence.

Business owners whose total net worth — including the value of their business — exceeds $50 million would owe an annual 2% wealth tax. Many closely held businesses are hard to value and illiquid, meaning owners might need to sell shares or take on debt to pay the tax. However, the bill allows up to 5 years to pay if the owner faces severe liquidity constraints or if immediate payment would cause undue hardship on an ongoing enterprise.

Farmers and ranchers who own land and assets totaling over $50 million would be subject to the annual wealth tax. Because farmland values have risen sharply in recent decades, some large farming operations could cross the threshold. The liquidity hardship provision could help, since farm wealth is often tied up in land rather than cash, but the tax could still create pressure to sell off land to cover the bill.

The bill authorizes $100 billion in new IRS funding from 2027 through 2037, including $70 billion for enforcement and $10 billion for taxpayer services. This would likely lead to significant IRS hiring and modernization, benefiting current and future federal employees at the agency through better tools, staffing levels, and resources.