Bernie Sanders and Ro Khanna advance legislation that would impose a 5 percent annual federal wealth tax on billionaires; this proposal is expected to raise $4.4 trillion over the next decade.
The plan would apply to fewer than 1,000 Americans whose net worth exceeds $1 billion and would not raise taxes for anyone below that threshold.
The key feature of the bill is direct payments of $3,000 per person for households earning $150,000 or less per year.
That works out to $12,000 for a family of four; Sanders says this aid will be funded entirely by taxing the ultra-rich.
The proposal was pushed back by JPMorgan Chase CEO Jamie Dimon, who said he didn’t understand what Sanders meant by billionaires not paying their “fair share.”
“I’ve been listening to this my whole life and I don’t know what you mean,” Dimon said during an appearance on FOX & Friends.
Dimon argued that raising taxes alone would not solve structural economic challenges and warned that additional revenue could be misallocated.
Dimon suggested that policymakers should instead focus on pro-growth reforms, including regulatory changes, immigration policy adjustments and merit-based systems.
He also proposed expanding income tax credits for low-income Americans and said such measures could increase economic mobility and increase spending in local communities.
Sanders responded to Dimon
Sanders responded harshly to Dimon’s criticism on social media.
“Okay Jamie: Let me clear things up for you,” Sanders wrote, arguing that a 5% tax on billionaires would require Dimon to pay about $135 million more.
“Oh, you’d still be worth more than $2.5 billion. Seems pretty fair to me,” Sanders concluded his post.
Sanders takes aim at Bezos and billionaire influence
Sanders is also targeting other billionaires with his tax proposal.
Sanders paired the rollout of the policy with criticism of billionaire influence; including a recent attack on Jeff Bezos and his ownership of The Washington Post.
“Surprise! The Washington Post, owned by Jeff Bezos, opposes my 5% billionaire wealth tax. I wonder why?” Sanders wrote.
“If it becomes law, Bezos will owe $12 billion in taxes and the average family of four will receive $12,000 in direct payments. Poor Jeff will only have $224 billion to survive.”
Financing of health, housing and education
Revenue from the wealth tax would be used to reverse more than $1 trillion in cuts to Medicaid and related programs, expand Medicare to include dental, vision and hearing insurance, and fund home health care for seniors and people with disabilities.
The proposal also includes a $60,000 minimum salary for public school teachers, investments in affordable housing and capping child care expenses at 7% of household income.
California wealth tax fight shapes national debate
The federal effort echoes debate in states like California, where a proposed billionaire tax has divided Democrats.
While Gavin Newsom opposed the state measure, warning that it could alienate businesses, Khanna supported it despite resistance from some Silicon Valley donors.
Sanders recently campaigned in Los Angeles to support the California proposal.
Long shot for Congress, but flashpoint in 2028
The legislation faces major challenges in a Republican-controlled Congress but is emerging as a key issue ahead of the 2028 Democratic presidential primaries.
Democrats are testing the waters to see if voters will respond positively.
As Khanna explores the presidential race, Newsom is widely seen as a leading candidate, underscoring a growing divide within the party over how aggressively to tax the ultra-wealthy.
while billionaire The tax plan would raise an estimated $4.4 trillion and address only a portion of the federal government’s broader fiscal challenges.
According to US Treasury Department data, total public debt stood at approximately 39.02 trillion dollars as of March 30, 2026.
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14 essential strategies to maximize your Social Security and avoid costly mistakes
Social Security is a vital lifeline for many seniors, providing significant income support during retirement. At a time when inflation is at its highest level in four decades, Social Security’s inflation-adjusted benefits provide protection against rising costs.
Rising interest rates have disrupted many retirement portfolios and caused bond fund values to decline. In this volatile financial environment, Social Security can stabilize a typical stock-bond retirement portfolio. By implementing smart strategies, retirees can maximize their Social Security benefits and ensure a more secure financial future.
14 Essential Strategies to Maximize Your Social Security and Avoid Costly Mistakes
11 reasons to claim Social Security early
Deciding when to claim Social Security is often about maximizing your benefits. Financial planners generally recommend delaying your claim as long as possible to secure the highest monthly payment. Your benefit is based on your lifetime earnings, with full payout available at your full retirement age (FRA); this age is currently between 66 and 67 years old, depending on your year of birth. Claiming before FRA will result in a permanent decrease in your monthly earnings, while waiting after FRA will result in a permanent increase. But the decision isn’t just about maximizing the monthly check. Personal factors such as health, family circumstances and financial needs can play an important role in determining the right time to make a claim.
11 Reasons to Apply for Social Security Early
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John Dealbreuin came to the United States from a third world country without knowing anyone and with only $1,000; Guided by an immigrant dream. He reached his retirement number in 12 years.
he started Financial Freedom Countdown helping everyone think differently about financial challenges and live their best life. John lives in the San Francisco Bay Area and enjoys hiking and weight training.
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Personal Capital: This is a free tool that John uses to keep track. net worth regularly and retirement planner. He also warns her about hidden fees and budget tracker including.
Platforms like Yield Street offer investment options art, legal, real estate, structured notes, venture capitaletc. They also have fixed income portfolios that span multiple asset classes with a single investment. Low minimums of $10,000.
