On Tax Day, Reps. Lee, Tlaib, Nadler Unveil Bill to Tax Billionaires, Curb Wealth Inequality
**For Immediate Release**
On Tax Day, Reps. Lee, Tlaib, Nadler Unveil Bill to Tax Billionaires, Curb Wealth Inequality
Legislation would tax wealth and instill measures for the IRS to combat tax evasion
WASHINGTON, D.C. – April 15, 2025 — Today on Tax Day, Congresswoman Summer Lee (PA-12), Congresswoman Rashida Tlaib (MI-12), and Congressman Jerrold Nadler (NY-12) reintroduced the Oppose Limitless Inequality Growth and Reverse Community Harm (OLIGARCH) Act, legislation to tax the wealth of the ultra-rich and billionaires based on their net worth relative to the median household in the United States. The bill would also instill measures within the Internal Revenue Service (IRS) to combat tax evasion.
“The extreme wealth inequality we’re seeing in this country is a threat to our democracy and the wellbeing of our communities.The richest among us shouldn’t be paying a smaller percentage of their income to the federal government than most working families. They must pay their fair share,” said Rep. Lee. “The OLIGARCH Act is a wealth tax bill that aims to tax the one percent who hold more wealth than the remaining 90% of the country. It’s long past time we address the concentrated wealth that is fueling political influence, leaving working families behind, and undermining our democracy.”
“Billionaires like Elon Musk continue buying our elections for politicians who will make the rich richer instead of fighting for working people. Meanwhile, 60% of Americans are living paycheck to paycheck, struggling to make ends meet. The billionaire class now has more than five times the combined wealth of the bottom 50% of Americans,” said Rep. Tlaib. “This extreme concentration of wealth is immoral and subverts our democracy. It’s time for a radical redistribution of wealth. We need to tax the rich and get dark money out of our elections.”
“Extreme wealth inequality isn’t just unsustainable—it’s undemocratic,” said Rep. Nadler. “For decades, billionaires have rigged the tax code in their favor while working families are asked to do more with less. The OLIGARCH Act is a bold step toward restoring balance to our economy and power to the people. By taxing extreme concentrations of wealth, we not only fund what communities need—we also protect our democracy from being bought by the ultra-rich. I’m proud to co-lead this legislation and fight for a fairer, more just America.”
The OLIGARCH Act establishes a wealth tax with four brackets designed to wax and wane with wealth concentration, intensifying during periods of rising inequality, but tapering off to near non-existence when median household wealth increases and inequality moderates to an acceptable level.
According to the 2022 Survey of Consumer Finances (SCF) from the Federal Reserve, median household net worth is approximately $192,900. The legislation’s four tax brackets would be broken down into the following:
- 2% for all wealth between 1,000 and 10,000 times median household wealth;
- 4% for all wealth between 10,000 and 100,000 times median household wealth;
- 6% for all wealth between 100,000 and 1,000,000 times median household wealth;
- 8% for all wealth over 1,000,000 times median household wealth
The bill also outlines specific enforcement measures to combat tax evasion, including the following:
- Valuation Standards: Directs the IRS to create clear rules for valuing all asset types, including illiquid assets like private businesses, art, and crypto, etc.
- Mandatory Wealth Reporting: Requires ultra-wealthy individuals and certain trusts to submit detailed annual statements of net worth to the IRS.
- IRS Authority to Adjust Values: Allows the IRS to independently revise reported asset values if they appear understated or inconsistent with market data.
- Audit Requirement: Mandates that the IRS audit at least 30% of all wealth tax returns each year (which is far higher than typical audit rates).
- Penalties for Underreporting: Establishes significant penalties for those who substantially undervalue their assets to avoid taxation.
The OLIGARCH Act is co-sponsored by Representatives Madeleine Dean (PA-04), Delia C. Ramirez (IL-03), Bonnie Watson-Coleman (NJ-12), Jared Huffman (CA-02), Eleanor Holmes Norton (DC), Valerie Foushee (NC-04), Maxwell Alejandro Frost (FL-10), Jan Schakowsky (IL-09), and Greg Casar (TX-35).
Rep. Lee initially introduced the OLIGARCH Act in 2023 with former Congresswoman Barbara Lee (CA-12), former Congressman Jamaal Bowman (NY-16), and Congresswoman Tlaib.
A copy of the bill text can be found here.
Congresswoman Summer Lee serves on the House Committee on Oversight and Government Reform and the Committee on Education and the Workforce. Since taking office in January 2023, she has delivered historic levels of federal investment totaling over $2.4 Billion brought back to Western PA, including over $580 million for infrastructure, over $110 million for affordable transit, over $500 million to keep clean energy manufacturing at home in Pennsylvania, and over $55 million on clean energy efforts in and around schools to help keep our kids and communities safe. These investments will help improve Western Pennsylvania’s infrastructure and transit, ensure cleaner air and drinking water, lower housing costs, fund research institutions, fuel clean manufacturing, fund STEM innovation and entrepreneurship, boost workforce development, and create thousands of good paying union jobs. Lee and her team have also delivered casework and constituent services to over 3,000 constituents with issues ranging from helping our seniors and disabled community access Medicare and social security to helping folks secure housing and helping families with immigration support and passports.