This bill — the Donald J. Trump Wealth Tax Act of 2017 — would impose a 14.25% tax on any U.S. citizen, resident, or applicable trust whose net worth exceeds $10 million. This tax would apply to the portion of the net worth that exceeds $10 million, excluding the value of any principal residence and its indebtedness.
What is House Bill H.R. 2143?
Cost of House Bill H.R. 2143
In-Depth: Rep. Juan Vargas (D-CA) introduced this bill to bring a tax plan proposed by Donald Trump in 1999 into effect, and to remind the President of his past as a proponent of higher taxes on the rich:
"President Trump was serious when he proposed this wealth tax almost 20 years ago. In the spirit of bipartisanship, I am introducing the Donald J. Trump Wealth Tax Act of 2017 to allow the President to follow through on his original idea. If President Trump is committed to reducing our national debt and staying true to his original tax proposal, then I will work with him to ensure that his wealth tax becomes law for the future and economic well-being of our country.”
The Tax Foundation, America's leading independent tax policy research organization, argues that this proposal is poor tax policy:
“Assets are mostly illiquid, meaning people own property, businesses, cars, gold, and other valuables that aren’t in money form. This one-time tax would require many millionaires to sell off physical assets in a very short period of time. Even If this were possible, liquidating $5.7 trillion worth of assets would be catastrophic for the economy. Citizens deserve sound tax policy, which includes stability and no retroactivity. One-time revenue raisers are proposed frequently, but they are unfair and cause people to change their behavior in response to an unpredictable policy environment.”
Of Note: While considering seeking the Reform Party's presidential nomination in 1999, future President Donald J. Trump announced a wealth tax plan to eliminate the national debt in its entirety by imposing a 14.25% net worth tax on all individuals and trusts with a net worth exceeding $10 million. At the time, Trump estimated that this plan would raise $5.7 trillion, and said in an interview on Good Morning America:
“If I were president, it would be passed. I think if somebody else is president, it probably can’t be...This is a tax paid by 1 percent, but the 1 percent will be very big beneficiaries with what’s going to happen and the positive forces that would take place in the economy.’’
Since Trump proposed his net worth tax idea in 1999, wealth taxes have become increasingly popular among left-leaning economists and policy wonks. French economist Thomas Piketty, who argued in his bestselling book Capital in the Twenty-First Century that wealth inequality has become a major problem for society best solved through a global wealth tax, is chief among proponents of taxing the rich more heavily.
- Sponsoring Rep. Juan Vargas (D-CA) Press Release
- Americans for Tax Fairness (In Favor)
- Tax Foundation Press Release (Opposed)
- CNN - 1999 Donald Trump Tax Proposal
- New York Times (Context)
Summary by Lorelei Yang(Photo Credit: iStockphoto.com / kevinjeon00)
Donald J. Trump Wealth Tax Act of 2017
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.
- Not enactedThe President has not signed this bill
- The senate has not voted
- The house has not voted
Committee on Ways and MeansIntroducedApril 25th, 2017
- house Committees