Bernie Sanders is stepping up his push for a 5 percent federal wealth tax on America’s billionaires, combining the policy with harsh criticism of billionaires’ influence in media and politics.
The legislation introduced by Ro Khanna is expected to raise about $4.4 trillion over a decade and would not increase taxes on Americans with a net worth of less than $1 billion.
Sanders takes aim at Bezos and media opposition
In an X-related post, Sanders took direct aim at 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.”
$3,000 direct payment per person offered
The key feature of the proposal is a $3,000 payment to each individual in households earning $150,000 or less annually. That works out to $12,000 in the first year alone for a family of four.
Lawmakers say the payments are designed to provide immediate relief as affordability concerns dominate the political climate.
Revenue from the billionaire tax would be used to reverse more than $1 trillion in cuts to Medicaid and related safety net programs and expand Medicare coverage to include dental, vision and hearing benefits.
The plan would also set a $60,000 minimum salary for public school teachers, limit child care expenses to 7% of family income and fund affordable housing construction and rehabilitation.
California wealth tax debate shapes national effort
The federal proposal mirrors efforts in Democratic-led states like California, where a ballot measure to tax billionaire wealth has sparked intense debate.
Gavin Newsom warned that the state’s proposal could prompt companies and wealthy residents to move; For his part, Khanna supported the measure despite objections from some Silicon Valley supporters.
Sanders recently campaigned in Los Angeles with Khanna to support the California initiative.
Billionaires are already leaving high-tax states
Since the California billionaire tax was announced, many founders have moved out of state.
Uber co-founder Travis Kalanick has become the latest billionaire to announce he is leaving California as lawmakers introduce a potential wealth tax targeting the ultra-rich.
Venture capitalist Vinod Khosla harshly criticized Khanna’s support for the measure, calling it a “communist” tax and warning it could do permanent damage to California’s tax base. Khosla claimed that even before the switch, roughly half of the state’s $2 trillion wealth was already gone.
Silicon Valley is reeling after confirmation that Google co-founder Larry Page has officially traded the Bay Area for the tax-friendly shores of Florida; venture capital titan Paul Graham warns the move is a direct response to the state’s aggressive new wealth tax proposal.
Paul Graham wrote in
Californian tech billionaire Peter Thiel announced that he has “established a significant presence in Miami over the past several years, maintaining a personal residence in the city since 2020” and establishing an office for his Founders Fund venture capital firm since 2021.
Billionaire venture capitalist and co-founder of Craft Ventures, David Sacks, announced on the last day of 2025 that his firm is opening an office in Austin, Texas.
Sacks, who previously lived in San Francisco, moved in early December, timing the move just ahead of the proposed residency cut.
Tech investor Chamath Palihapitiya has publicly stated that he is “seriously considering” moving to Texas and warned that the tax could drive entrepreneurs and capital away from California.
Y Combinator CEO Garry Tan warned that uncertainty surrounding the proposal could crush California’s startup ecosystem. He warned that founders may relocate companies before they achieve success; or avoid starting new ventures in the state altogether.
IRS migration data reveals shift from Blue states to Red states
Newly released 2022-2023 immigration figures by the Internal Revenue Service highlight a major shift in residents and incomes across the US; This has significant impacts on state budgets, housing demand, and long-term economic competitiveness.
Low-tax states are emerging as clear beneficiaries of this trend. Florida gained a net gain of 113,494 people, including 50,485 high-income earners; This translates into a remarkable revenue stream of $20.7 billion; More than $17 billion of that came from the highest-earning households alone. Texas followed closely behind, adding 111,079 net new residents and $5.3 billion in additional income.
At the same time, high-tax coastal states experienced large outflows. California recorded the nation’s largest population loss, with 205,788 net departures; Including 37,777 high-income earners; collectively they took $13 billion in income with them, $7.6 billion from top earners alone. New York also reported heavy losses, losing 161,963 residents and $10.6 billion in lost revenue. In the two states combined, nearly 368,000 people and $23.6 billion in annual income were relocated in just one year; a shift that underscores growing concerns about shrinking tax bases.
Sanders and Khanna hope a national tax will prevent people from leaving blue states.
Estimated tax bills for America’s richest
According to figures cited by Sanders’ office, many high-profile billionaires would face serious tax liabilities under the plan:
Elon Musk may be roughly $42 billion in debt.
Bezos will owe approximately $12 billion.
Mark Zuckerberg will also be roughly $11 billion in debt.
Supporters argue the tax would generate significant public revenue while largely protecting billionaires’ wealth.
A long shot for Congress but a flashpoint in the 2028 elections
The proposal faces major challenges in a Republican-controlled Congress, but it is already shaping the policy debate ahead of the 2028 Democratic presidential primaries.
As Khanna tests the waters for the presidential race, Newsom; widely viewed as a potential rival; He took the opposite position on California’s wealth tax. Sanders, who is not expected to run again, framed the proposal as a blueprint for the party’s economic agenda.
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Federal appeals court ends Biden’s SAVE student loan plan, leaving more than 7 million borrowers scrambling for new payments
A federal appeals court has ruled to officially end the Savings on Value Education (SAVE) plan, a Biden administration-era student loan repayment program that significantly reduced monthly bills for millions of borrowers. In a decision released Monday, the 8th U.S. Circuit Court of Appeals reversed a lower court decision that rejected Republicans’ legal challenge to the plan. The decision effectively ends the program and forces millions of borrowers currently enrolled in SAVE to switch to other repayment options in the coming months.
Cory Booker’s ‘Protect Your Paycheck Act’ would eliminate taxes on the first $75,000 and expand child tax credits
Cory Booker on Monday announced a sweeping proposal that would eliminate federal income taxes on the first $75,000 of income for most households, arguing that the plan would significantly increase the take-home pay for working- and middle-class Americans. The New Jersey Democrat said the idea would reshape the tax code by significantly increasing the standard deduction while expanding various tax credits for families and low-income workers. Booker plans to introduce legislation called the “Protect Your Paycheck Act” to the Senate this week. The offer comes as he faces a re-election campaign in 2026 and is widely seen as a potential candidate in the 2028 presidential race.
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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.
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