# Senator Sanders, Representative Khanna Propose Annual 5% Wealth Tax on Billionaires

*Author: Jack Inabinet*
*Published: Mar 2, 2026*
*Source: https://www.bankless.com/read/news/congress-members-propose-annual-5-wealth-tax-on-billionaires*

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Senator Bernie Sanders (I-VT) and Representative Ro Khanna (D-CA) plan to introduce a bill to impose a 5% federal wealth tax on billionaires, according to a newly released bill [summary document](https://www.sanders.senate.gov/wp-content/uploads/Wealth-Tax-Bill-Summary.pdf).

### What's the Scoop?
- **Tax the Rich: **Senator Sanders and Representative Khanna believe a new tax will solve wealth inequality in America. The pair's newly released [proposal](https://www.sanders.senate.gov/wp-content/uploads/Wealth-Tax-Bill-Summary.pdf) promises to strictly assess unrealized wealth taxes of 5% on individuals with a networth greater than $1B, and claims it will raise $4.4T of new tax revenue over the next decade.
- **New Social Programs:** Unrealized tax revenue would go toward expanding the welfare state. Among other things, this includes: paying $3k to every resident in a household that earns less than $150k, reversing $1.1T of "One Big Beautiful Bill" cuts to Medicaid and healthcare, expanding Medicare coverage for seniors, and establishing a $60k per year minimum salary for every public school teacher in America.
- **Going Dutch:** Wealth tax implementation has gained increasing traction among some policymakers. California voters may [consider](https://www.ntu.org/foundation/detail/california-wealth-tax-proposal-achieves-a-new-feat-in-tax-policy-losing-the-state-money-before-it-even-becomes-law) a "one-time" 5% wealth tax later this November, and the Netherlands controversially [enacted](https://kpmg.com/us/en/taxnewsflash/news/2026/02/tnf-netherlands-transition-to-new-box-3-wealth-tax-regime.html) a 36% tax on unrealized gains in February (anticipated to become effective beginning calendar year 2028).

> Today, while billionaires have never had it so good, 60% live paycheck to paycheck.We can no longer tolerate a rigged system that lets billionaires pay a lower tax rate than average workers. A tax on billionaires will help create an economy that works for all, not the 1%. [https://t.co/Xgx6ICedAf](https://t.co/Xgx6ICedAf)— Bernie Sanders (@BernieSanders) [March 2, 2026](https://twitter.com/BernieSanders/status/2028575197033374183?ref_src=twsrc%5Etfw)