Millions of Americans may benefit from a potential $3,000 payment as part of a new bill that proposes a 5% federal wealth tax on billionaires.
Last week, Senator Bernie Sanders, an independent from Vermont, along with Representative Ro Khanna, a Democrat from California, introduced the Make Billionaires Pay Their Fair Share Act. This legislation aims to implement a 5% annual wealth tax on the 938 billionaires residing in the US, as stated in the press release.
The bill is anticipated to raise $4.4 trillion over the next ten years, which would be used to support social programs, including a direct payment of $3,000 to specific groups within the US.
Who is eligible for the $3,000 payment?
The payment will be allocated to every person in households with an annual income of less than $150,000 or lower its initial year.
According to Sanders’ office, the proposed 5% annual wealth tax would only affect the 938 billionaires in the nation, without imposing any tax increases on people with a net worth below $1 billion. The revenue generated from this tax would be utilized to support programs aimed at assisting working families, children, the elderly, and other at-risk populations.
The summary document of the bill provided by the legislators specifies that the revenue will finance a $3,000 direct payment to “every man, woman, and child living in a household making $150,000 or less.” Similarly, a family of four with an income of $150,000 or less would receive a total of $12,000.
Additionally, another provision in the bill reverses the $1.1 trillion cuts to Medicaid and the Affordable Care Act that were enacted through the Republicans’ tax-cut mega-legislation, referred to as the One Big Beautiful Bill Act, and expands Medicare to cover dental, vision, and hearing services.
The extra income generated by the legislation would be utilized to build, renovate, and sustain affordable housing; guarantee that families do not allocate more than 7% of their earnings towards childcare; set a minimum annual salary of $60,000 for public school educators, and ensure that seniors and persons with disabilities have access to home health care services through Medicaid.
