I 

117TH CONGRESS 

1ST SESSION H. R. 1459 

To amend the Internal Revenue Code of 1986 to impose a tax on the 

net value of assets of a taxpayer, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2021 

Ms. JAYAPAL (for herself, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. 

NORTON, Ms. LEE of California, Ms. OMAR, Ms. OCASIO-CORTEZ, Ms. 

BUSH, Mr. TAKANO, Mr. BOWMAN, Ms. SCHAKOWSKY, Mrs. WATSON

COLEMAN, Mr. GRIJALVA, Mr. JONES, Ms. PRESSLEY, Mr. MCGOVERN, 

Mr. EVANS, Mr. KHANNA, Mr. GARCI ́A of Illinois, Ms. CHU, and Mr. 

SMITH of Washington) introduced the following bill; which was referred 

to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a tax on the net value of assets of a taxpayer, and 

for other purposes. 

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 ‘‘Ultra-Millionaire Tax 

5 Act of 2021’’. 


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1 SEC. 2. IMPOSITION OF WEALTH TAX. 

2 (a) IN GENERAL.—The Internal Revenue Code of 

3 1986 is amended by inserting after subtitle B the fol4 lowing new subtitle: 

5 ‘‘Subtitle B–1—Wealth Tax 

‘‘CHAPTER 18—DETERMINATION OF WEALTH TAX

6 ‘‘CHAPTER 18—DETERMINATION OF 

7 WEALTH TAX 

‘‘Sec. 2901. Imposition of tax. 

‘‘Sec. 2902. Value of taxable assets. 

‘‘Sec. 2903. Special rules. 

‘‘Sec. 2904. Information reporting. 

‘‘Sec. 2905. Enforcement. 

8 ‘‘SEC. 2901. IMPOSITION OF TAX. 

9 ‘‘(a) IN GENERAL.—In the case of any applicable tax10 payer, a tax is hereby imposed on the net value of all tax11 able assets of the taxpayer on the last day of any calendar 

12 year. 

13 ‘‘(b) COMPUTATION OF TAX.— 

14 ‘‘(1) IN GENERAL.—The tax imposed by this 

15 section shall be equal to the sum of— 

16 ‘‘(A) 2 percent of so much of the net value 

17 of all taxable assets of the taxpayer in excess of 

18 $50,000,000 but not in excess of 

19 $1,000,000,000, plus 

20 ‘‘(B) the applicable percentage of so much 

21 of the net value of all such taxable assets in ex22 cess of $1,000,000,000. 


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1 No tax shall be imposed under subsection (a) on the 

2 net value of taxable assets not in excess of 

3 $50,000,000. 

4 ‘‘(2) APPLICABLE PERCENTAGE.— 

5 ‘‘(A) IN GENERAL.—For purposes of this 

6 section, the applicable percentage is— 

7 ‘‘(i) except as provided in clause (ii), 

8 3 percent, and 

9 ‘‘(ii) in the case of any calendar year 

10 in which there is in effect legislation which 

11 meets the requirements of subparagraph 

12 (B), 6 percent. 

13 ‘‘(B) LEGISLATION DESCRIBED.—Legisla14 tion meets the requirements of this paragraph 

15 if such legislation— 

16 ‘‘(i) establishes a health insurance 

17 program that provides to all residents of 

18 the United States comprehensive protec19 tion against the costs of health care and 

20 health-related services, and 

21 ‘‘(ii) prohibits private entities from 

22 providing duplicate benefits. 

23 ‘‘(c) APPLICABLE TAXPAYER.— 

24 ‘‘(1) IN GENERAL.—The term ‘applicable tax25 payer’ means any individual or any trust (other than 


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1 a trust described in section 401(a) and exempt from 

2 tax under section 501(a)). 

3 ‘‘(2) TREATMENT OF MARRIED INDIVIDUALS.— 

4 For purposes of this section, individuals who are 

5 married (as defined in section 7703) shall be treated 

6 as one applicable taxpayer. 

7 ‘‘(3) TREATMENT OF TRUSTS.— 

8 ‘‘(A) IN GENERAL.—All trusts with sub9 stantially the same beneficiaries shall be treated 

10 as a single applicable taxpayer. 

11 ‘‘(B) TRANSFERS OF PROPERTY BETWEEN

12 TRUSTS.—If a trust transfers property by gift 

13 or decantation to another trust in any calendar 

14 year after December 31, 2020, the transferor 

15 trust and the transferee trust shall be treated 

16 as a single applicable taxpayer for such cal17 endar year. 

18 ‘‘SEC. 2902. NET VALUE OF TAXABLE ASSETS. 

19 ‘‘(a) IN GENERAL.—For purposes of this subtitle, the 

20 term ‘net value of all taxable assets’ means, as of any date, 

21 the value of all property of the taxpayer (other than prop22 erty excluded under subsection (b)), real or personal, tan23 gible or intangible, wherever situated, reduced by any 

24 debts (including any debts secured by property excluded 

25 under subsection (b)) owed by the taxpayer. 


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1 ‘‘(b) EXCLUSION FOR CERTAIN ASSETS UNDER

2 $50,000.—Property of the taxpayer shall not be taken 

3 into account under subsection (a) if such property— 

4 ‘‘(1) has a value of $50,000 or less (determined 

5 without regard to any debt owed by the taxpayer 

6 with respect to such property), 

7 ‘‘(2) is tangible personal property, and 

8 ‘‘(3) is not property— 

9 ‘‘(A) which is used in a trade or business 

10 of the taxpayer, 

11 ‘‘(B) in connection with which a deduction 

12 is allowable under section 212, or 

13 ‘‘(C) which is a collectible as defined in 

14 section 408(m), a boat, an aircraft, a mobile 

15 home, a trailer, a vehicle, or an antique or other 

16 asset that maintains or increases its value over 

17 time (within the meaning of section 5.02(2) of 

18 Revenue Procedure 2018–08). 

19 ‘‘(c) RULES FOR DETERMINING PROPERTY OF THE

20 TAXPAYER.—For purposes of this subtitle— 

21 ‘‘(1) PROPERTY INCLUDED IN ESTATE.—Any 

22 property that would be included in the estate of the 

23 taxpayer if the taxpayer died shall be treated as 

24 property of the taxpayer. 


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1 ‘‘(2) PROPERTY OF GRANTOR TRUSTS.—If an 

2 individual is treated as the owner of any portion of 

3 a trust under subpart E of subchapter J of chapter 

4 1, property attributable to such portion of the trust 

5 shall be treated as property of the individual and not 

6 as property of the trust. 

7 ‘‘(3) INCLUSION OF CERTAIN GIFTS.—Any 

8 property transferred by the taxpayer after the date 

9 of the enactment of this chapter, to an individual 

10 who is a member of the family of the taxpayer (as 

11 determined under section 267(c)(4)) and has not at12 tained the age of 18 shall be treated as property of 

13 the taxpayer for any calendar year before the year 

14 in which such individual attains the age of 18. 

15 ‘‘(d) ESTABLISHMENT OF VALUATION RULES.—Not 

16 later than 12 months after the date of the enactment of 

17 this section, the Secretary shall establish rules and meth18 ods for determining the value of any asset for purposes 

19 of this subtitle, including rules for the valuation of assets 

20 that are not publicly traded or that do not have a readily 

21 ascertainable value. Such rules and methods— 

22 ‘‘(1) may utilize retrospective and prospective 

23 formulaic valuation methods not currently in use by 

24 the Secretary, 


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1 ‘‘(2) may require the use of formulaic valuation 

2 approaches for designated assets, including 

3 formulaic approaches based on proxies for deter4 mining presumptive valuations, formulaic approaches 

5 based on prospective adjustments from purchase 

6 prices or other prior events, or formulaic approaches 

7 based on retrospectively adding deferral charges 

8 based on eventual sale prices or other specified later 

9 events indicative of valuation, and 

10 ‘‘(3) may address the use of valuation dis11 counts. 

12 ‘‘SEC. 2903. SPECIAL RULES. 

13 ‘‘(a) DECEASED INDIVIDUALS.— 

14 ‘‘(1) IN GENERAL.—In the case of any indi15 vidual who dies during a calendar year and who is 

16 not married on the date of such individual’s death— 

17 ‘‘(A) section 2901 shall be applied by sub18 stituting ‘the date of the applicable taxpayer’s 

19 death’ for ‘the last day of the calendar year’, 

20 and 

21 ‘‘(B) the amount of the tax imposed under 

22 such section shall be reduced by an amount 

23 which bears the same ratio to such amount (de24 termined without regard to this subsection) 

25 as— 


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1 ‘‘(i) the number of days in the cal2 endar year after the date of the individ3 ual’s death, bears to 

4 ‘‘(ii) 365. 

5 ‘‘(2) COORDINATION WITH ESTATE TAX.—For 

6 purposes of section 2053, the tax imposed by this 

7 section for the year of the decedent’s death shall be 

8 considered to have been imposed before such death. 

9 ‘‘(b) APPLICATION TO NONRESIDENTS.—In the case 

10 of any individual who is a non-resident and not a citizen 

11 of the United States, this subtitle shall apply only to the 

12 property of such individual which is situated in the United 

13 States (determined under rules similar to the rules under 

14 subchapter B of chapter 11). 

15 ‘‘(c) APPLICATION TO COVERED EXPATRIATES.—In 

16 the case of an individual who is a covered expatriate (as 

17 defined in section 877A), section 2901(a) shall be ap18 plied— 

19 ‘‘(1) as if the calendar year ended on the day 

20 before the expatriation, and 

21 ‘‘(2) as if the rate of tax under both subpara22 graphs (A) and (B) of section 2901(b)(1) were 40 

23 percent. 


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1 ‘‘SEC. 2904. INFORMATION REPORTING. 

2 ‘‘(a) IN GENERAL.—Not later than 12 months after 

3 the date of the enactment of this section, the Secretary 

4 shall by regulations require the reporting of any informa5 tion concerning the net value of assets appropriate to en6 force the tax imposed by this chapter. 

7 ‘‘(b) METHOD OF REPORTING.—The Secretary shall, 

8 where appropriate, require the reporting made under sub9 section (a) to be made as a part of existing income report10 ing requirements (including requirements under chapter 

11 4 (relating to taxes to enforce reporting on certain foreign 

12 accounts)). 

13 ‘‘(c) RESPONSIBILITY FOR REPORTING.—The Sec14 retary may impose reporting obligations by reference to 

15 the ownership, control, management, claim to income 

16 from, or other relationship to assets and liabilities for pur17 poses of administering the tax imposed by this section and 

18 may impose such obligations on financial institutions, 

19 business entities, or other persons, including requiring 

20 business entities to provide estimates of the value of the 

21 entity itself. 

22 ‘‘SEC. 2905. ENFORCEMENT. 

23 ‘‘The Secretary shall annually audit not less than 30 

24 percent of taxpayers required to pay the tax imposed 

25 under this chapter.’’. 


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1 (b) NO DEDUCTION FROM INCOME TAXES.—Section 

2 275 of the Internal Revenue Code of 1986 is amended by 

3 inserting after paragraph (6) the following new paragraph: 

4 ‘‘(7) Taxes imposed by chapter 18.’’. 

5 (c) EXTENSION OF TIME FOR PAYMENT OF TAX.— 

6 (1) IN GENERAL.—Section 6161(a) of the In7 ternal Revenue Code of 1986 is amended by adding 

8 at the end the following new paragraph: 

9 ‘‘(3) WEALTH TAX.— 

10 ‘‘(A) IN GENERAL.—In the case of an ap11 plicable taxpayer described in subparagraph 

12 (B), the Secretary may extend the time for pay13 ment of the tax imposed under chapter 18 for 

14 a reasonable period not to exceed 5 years from 

15 the date fixed for the payment thereof. 

16 ‘‘(B) TAXPAYERS DESCRIBED.—An appli17 cable taxpayer is described in this subparagraph 

18 if such the Secretary determines— 

19 ‘‘(i) the applicable taxpayer has severe 

20 liquidity constraints, or 

21 ‘‘(ii) immediate payment would cause 

22 undue hardship on an ongoing enterprise. 

23 ‘‘(C) APPLICABLE TAXPAYER.—For pur24 poses of this paragraph, the term ‘applicable 


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1 taxpayer’ has the meaning given such term 

2 under section 2901.’’. 

3 (2) RULES.—Not later than 12 months after 

4 the date of the enactment of this Act, the Secretary 

5 of the Treasury (or the Secretary’s delegate) shall 

6 establish rules for the application of the amend7 ments made by paragraph (1). 

8 (d) APPLICATION OF ACCURACY RELATED PEN9 ALTIES.— 

10 (1) IN GENERAL.—Section 6662(b) of the In11 ternal Revenue Code of 1986 is amended by adding 

12 at the end the following new paragraph: 

13 ‘‘(10) Any substantial wealth tax valuation un14 derstatement.’’. 

15 (2) SUBSTANTIAL WEALTH TAX UNDERSTATE16 MENT.—Section 6662 of such Code is amended by 

17 adding at the end the following new subsection: 

18 ‘‘(m) APPLICATION TO SUBSTANTIAL WEALTH TAX

19 VALUATION UNDERSTATEMENT.— 

20 ‘‘(1) SUBSTANTIAL WEALTH TAX VALUATION

21 UNDERSTATEMENT DEFINED.— 

22 ‘‘(A) IN GENERAL.—For purposes of this 

23 section, there is a substantial wealth tax valu24 ation understatement if the value of any prop25 erty claimed on any return of tax imposed by 


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1 subtitle B–1 is 65 percent or less of the amount 

2 determined to be the correct amount of such 

3 valuation. 

4 ‘‘(B) LIMITATION.—No penalty shall be 

5 imposed by reason of subsection (b)(10) unless 

6 the portion of the underpayment attributable to 

7 substantial wealth tax valuation understate8 ments for the calendar year exceeds $5,000. 

9 ‘‘(2) INCREASED PENALTY.— 

10 ‘‘(A) IN GENERAL.—In the case of any 

11 portion of an underpayment which is attrib12 utable to one or more substantial wealth tax 

13 valuation understatement, subsection (a) shall 

14 be applied— 

15 ‘‘(i) in the case of a substantial wealth 

16 tax valuation understatement which is a 

17 gross wealth tax valuation misstatement, 

18 by substituting ‘50 percent’ for ‘20 per19 cent’, and 

20 ‘‘(ii) in any other case, by substituting 

21 ‘30 percent’ for ‘20 percent’. 

22 ‘‘(B) GROSS WEALTH TAX VALUATION

23 MISSTATEMENT.—For purposes of subpara24 graph (A), the term ‘gross wealth tax valuation 

25 misstatement’ means a substantial wealth tax 


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1 valuation understatement, as determined under 

2 paragraph (1) by substituting ‘40 percent’ for 

3 ‘65 percent’.’’. 

4 (e) CLERICAL AMENDMENT.—The table of subtitles 

5 of such Code is amended by inserting after the item relat6 ing to subtitle B the following new item: 

‘‘Subtitle B–1—Wealth Tax’’. 

7 (f) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to calendar years beginning after 

9 December 31, 2022. 

10 (g) PERIODIC REPORTS.—Not later than January 1, 

11 2025, and every 2 years thereafter, the Secretary of the 

12 Treasury (or the Secretary’s delegate) shall submit to 

13 Congress a report on the tax imposed under chapter 18 

14 of the Internal Revenue Code of 1986 (as added by this 

15 Act), including any issues related to the administration 

16 and enforcement of such tax. 

17 SEC. 3. STRENGTHENING DISCLOSURE REQUIREMENTS. 

18 (a) REGULATORY AUTHORITY.—The Secretary of the 

19 Treasury (or the Secretary’s delegate) may issue such 

20 rules and regulations as necessary to prevent taxpayers 

21 from avoiding the purpose of information reporting re22 quirements under the Internal Revenue Code of 1986 by 

23 placing assets in any foreign corporation, partnership, or 

24 trust in which the taxpayer holds directly or indirectly, 


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1 a significant interest as the sole or principal owner or the 

2 sole or principal beneficial owner. 

3 (b) FATCA ENFORCEMENT PLAN.—The Secretary 

4 of the Treasury (or the Secretary’s delegate) shall develop 

5 a comprehensive plan for managing efforts to leverage 

6 data collected under chapter 4 of the Internal Revenue 

7 Code of 1986 in agency compliance efforts. Such plan 

8 shall include an evaluation of the extent to which actions 

9 being undertaken as of the date of the enactment of this 

10 Act for the enforcement of the requirements of such chap11 ter improve voluntary compliance and address noncompli12 ance with such requirements. 

13 SEC. 4. INTERNAL REVENUE SERVICE FUNDING. 

14 (a) IN GENERAL.—Subchapter A of chapter 80 of the 

15 Internal Revenue Code of 1986 is amended by adding at 

16 the end the following new section: 

17 ‘‘SEC. 7813. AUTHORIZATION OF APPROPRIATIONS. 

18 ‘‘There are authorized to be appropriated to the Sec19 retary for each of fiscal years 2022 through 2032— 

20 ‘‘(1) for enforcement of this title, 

21 $70,000,000,000, 

22 ‘‘(2) for taxpayer services, $10,000,000,000, 

23 and 

24 ‘‘(3) for business system modernization, 

25 $20,000,000,000.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for subchapter A of chapter 80 of the Internal Revenue 

3 Code of 1986 is amended by adding at the end the fol4 lowing new item: 

‘‘Sec. 7813. Authorization of appropriations.’’. 

Æ 


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