Democrats Urged to Pursue Wealth Tax After Midterm Gains

Advocates want the new congressional majorities to act after taking office in January, and to introduce a national wealth tax within the first 100 days. The issue featured in campaigns by Sen.-elects Troy Jackson (D-Maine) and James Talarico (D-Texas), as well as Abdul El-Sayed (D-Mich.). Sen.-elect Peggy Flanagan (D-Minn.) was also among the candidates cited by Meghan Schneider, senior spokesperson for Tax the Greedy Billionaires.

Schneider described the election as a referendum on control of the economy and democracy, saying wealthy donors had tried to shape public opinion and buy influence. Voters, she said, wanted leaders who would improve conditions for working people rather than billionaires.

Several proposals are before lawmakers. Sen. Chris Van Hollen (D-Md.) has proposed a graduated surtax on annual income above $1 million: 5% for people earning $1 million to $2 million, rising to 12% for households earning more than $5 million. His plan would also raise the top capital gains tax rate from 23.8% to 35.8%.

Rep. Ro Khanna (D-Calif.) and Sen. Bernie Sanders (I-Vt.) have proposed the Make Billionaires Pay Their Fair Share Act, which would levy an annual 5% tax on households with net worth above $1 billion. Senate Minority Leader Chuck Schumer has called for quadrupling the tax on stock buybacks. Sen. Ron Wyden (D-Ore.), who is set to chair the Senate Finance Committee, said the panel would renew efforts to make billionaires pay their fair share and hold tax cheats accountable.

California’s proposed one-time 5% tax on the state’s richest residents was defeated after opponents spent more than $379 million against it. Van Hollen told Politico that proposing a federal tax could clarify Democrats’ position ahead of 2028, even if President Donald Trump vetoed it. Schneider also pointed to the AI boom and expected corporate IPOs as factors worsening wealth inequality and affordability, and called for swift congressional action.