I 

115TH CONGRESS 

1ST SESSION H. R. 2143 

To impose a net worth tax of 14.25 percent on all individuals and trusts 

with a net worth of $10,000,000 or more. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2017 

Mr. VARGAS introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To impose a net worth tax of 14.25 percent on all individuals 

and trusts with a net worth of $10,000,000 or more. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Donald J. Trump 

5 Wealth Tax Act of 2017’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) In 1999, then Presidential candidate Don9 ald J. Trump said the following on Good Morning 

10 America regarding his wealth tax plan, ‘‘If I were 


lotter on DSK5VPTVN1PROD with BILLS
2 

•HR 2143 IH

1 president, it would be passed. I think if somebody 

2 else is president, it probably can’t be. . . . This is 

3 a tax paid by 1 percent, but the 1 percent will be 

4 very big beneficiaries with what’s going to happen 

5 and the positive forces that would take place in the 

6 economy.’’. 

7 (2) In an interview with Sean Hannity on Fox 

8 News in 2015, then Presidential candidate Trump 

9 described his 1999 wealth tax plan as ‘‘a very con10 servative thing to do.’’. 

11 (3) The proposed tax plan, according to then 

12 Presidential candidate Trump, was expected to raise 

13 $5.7 trillion and pay off the national debt in its en14 tirety at the time. 

15 (4) Many prominent conservatives have argued 

16 reducing the national debt is crucial for our eco17 nomic health and prosperity, including the following: 

18 (A) According to a 2011 Heritage Founda19 tion Report, Saving the American Dream, ‘‘Our 

20 national debt now is nearly 70 percent of GDP 

21 and on track to hit 185 percent within 25 

22 years. Lower debt will remove the threat of fi23 nancial crisis and restore the confidence of in24 vestors and lenders. It will also sharply reduce 

25 the debt burden on future generations, relieve 


lotter on DSK5VPTVN1PROD with BILLS
3 

•HR 2143 IH

1 the pressure on interest rates, and help to se2 cure our prosperity.’’. 

3 (B) Republican National Committee Chair4 man, now White House Chief of Staff, Reince 

5 Priebus in his 2014 Statement on the National 

6 Debt Increase stated, ‘‘Spending more money 

7 than we have is immoral; it hurts future gen8 erations who will be left to pay off the bills. 

9 Taking care of this generation shouldn’t require 

10 robbing the next. This is why Republicans have 

11 fought for fiscal responsibility in Congress.’’. 

12 (C) As the Cato Institute wrote in 2016, 

13 ‘‘The debt matters. Not only is it remarkably 

14 unfair to our children and grandchildren, it is 

15 imposing costs today. Our economic growth is 

16 slower and our wages lower than they would be 

17 if it were smaller. Other political and economic 

18 priorities are being squeezed out. Interest on 

19 the debt was projected to reach $261 billion 

20 this year, and exceed $500 billion by 2020 even 

21 before factoring in the recent budget-busting 

22 deals.’’. 

23 (D) In August of 2016, President of the 

24 Committee for a Responsible Federal Budget, 

25 Maya MacGuineas, said, ‘‘The evidence is clear: 


lotter on DSK5VPTVN1PROD with BILLS
4 

•HR 2143 IH

1 Reducing our projected long-term debt will pro2 mote economic growth; increasing debt will slow 

3 that growth.’’. 

4 (E) According to the GOP Platform in 

5 2016, ‘‘Our national debt is a burden on our 

6 economy and families. The huge increase in the 

7 national debt demanded by and incurred during 

8 the current Administration has placed a signifi9 cant burden on future generations. We must 

10 impose firm caps on future debt, accelerate the 

11 repayment of the trillions we now owe in order 

12 to reaffirm our principles of responsible and 

13 limited government, and remove the burdens we 

14 are placing on future generations. A strong 

15 economy is one key to debt reduction, but 

16 spending restraint is a necessary component 

17 that must be vigorously pursued.’’. 

18 (5) Since the beginning of the Global War on 

19 Terror, the Overseas Operations in Iraq, Afghani20 stan, and other War on Terror-related activities have 

21 added an estimated $1.7 trillion to the national debt 

22 (according to figures by the Congressional Research 

23 Service and the Congressional Budget Office). 

24 (6) Several academic and media reports project 

25 total spending and future obligations for the OverVerDate Sep 11 2014 00:13 Apr 27, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2143.IH H2143

lotter on DSK5VPTVN1PROD with BILLS
5 

•HR 2143 IH

1 seas Operations in Iraq, Afghanistan, and other War 

2 on Terror-related activities to cost between $4 tril3 lion and $6 trillion (a recent report by the Cost of 

4 War project at Brown University estimates the costs 

5 through 2053 as $4.792 trillion). 

6 (7) If the Donald J. Trump Wealth Tax raises 

7 the $5.7 trillion that President Trump expected it 

8 would in 1999, it would cover all current and future 

9 obligations incurred by the Global War on Terror 

10 and reduce the debt to GDP ratio from 77 percent 

11 to 46 percent. 

12 (8) On February 28, 2017, President Trump 

13 declared in his speech before Congress that, ‘‘Demo14 crats and Republicans should get together and unite 

15 for the good of our country and for the good of the 

16 American people.’’. 

17 (9) In the spirit of bipartisanship, we introduce 

18 the Donald J. Trump Wealth Tax to fulfill his prom19 ise to the American people and substantially reduce 

20 our national debt. 

21 SEC. 3. DONALD J. TRUMP WEALTH TAX. 

22 (a) TAX IMPOSED.—There is hereby imposed a tax 

23 equal to 14.25 percent of so much of the net worth of 

24 any individual who is a citizen or resident of the United 

25 States, or any applicable trust, as exceeds $10,000,000. 


lotter on DSK5VPTVN1PROD with BILLS
6 

•HR 2143 IH

1 (b) VALUATION.—For purposes of this section, net 

2 worth shall be determined as of the date of the enactment 

3 of this Act under rules similar to the rules for determining 

4 the taxable estate of a decedent under chapter 11 of the 

5 Internal Revenue Code of 1986, except that in the case 

6 of any married individuals, the tax imposed by this section 

7 shall be determined jointly. 

8 (c) TRUSTS.—For purposes of this section— 

9 (1) APPLICABLE TRUST.—The term ‘‘applicable 

10 trust’’ means any trust which is not treated as a 

11 grantor trust under such Code and which is— 

12 (A) a domestic trust; or 

13 (B) any portion of a foreign trust which is 

14 allocable, under such rules as the Secretary of 

15 the Treasury may prescribe, to one or more 

16 beneficiaries who are citizens or residents of the 

17 United States. 

18 (2) GRANTOR TRUST.—The net worth of any 

19 grantor trust shall be taken into account by the 

20 grantor in determining the tax imposed by this sec21 tion. 

22 (d) EXCLUSION OF PRINCIPAL RESIDENCE AND ITS

23 INDEBTEDNESS.—The value of any principal residence 

24 (within the meaning section 121 of such Code), and any 

25 acquisition indebtedness (as defined in section 


lotter on DSK5VPTVN1PROD with BILLS
7 

•HR 2143 IH

1 163(h)(3)(B) of such Code) with respect thereto, shall not 

2 be taken into account under subsection (a). 

Æ 


lotter on DSK5VPTVN1PROD with BILLS