[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2143 Introduced in House (IH)]
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115th CONGRESS
1st Session
H. R. 2143
To impose a net worth tax of 14.25 percent on all individuals and
trusts with a net worth of $10,000,000 or more.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 25, 2017
Mr. Vargas introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To impose a net worth tax of 14.25 percent on all individuals and
trusts with a net worth of $10,000,000 or more.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Donald J. Trump Wealth Tax Act of
2017''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In 1999, then Presidential candidate Donald J. Trump
said the following on Good Morning America regarding his wealth
tax plan, ``If I were president, it would be passed. I think if
somebody else is president, it probably can't be. . . . This is
a tax paid by 1 percent, but the 1 percent will be very big
beneficiaries with what's going to happen and the positive
forces that would take place in the economy.''.
(2) In an interview with Sean Hannity on Fox News in 2015,
then Presidential candidate Trump described his 1999 wealth tax
plan as ``a very conservative thing to do.''.
(3) The proposed tax plan, according to then Presidential
candidate Trump, was expected to raise $5.7 trillion and pay
off the national debt in its entirety at the time.
(4) Many prominent conservatives have argued reducing the
national debt is crucial for our economic health and
prosperity, including the following:
(A) According to a 2011 Heritage Foundation Report,
Saving the American Dream, ``Our national debt now is
nearly 70 percent of GDP and on track to hit 185
percent within 25 years. Lower debt will remove the
threat of financial crisis and restore the confidence
of investors and lenders. It will also sharply reduce
the debt burden on future generations, relieve the
pressure on interest rates, and help to secure our
prosperity.''.
(B) Republican National Committee Chairman, now
White House Chief of Staff, Reince Priebus in his 2014
Statement on the National Debt Increase stated,
``Spending more money than we have is immoral; it hurts
future generations who will be left to pay off the
bills. Taking care of this generation shouldn't require
robbing the next. This is why Republicans have fought
for fiscal responsibility in Congress.''.
(C) As the Cato Institute wrote in 2016, ``The debt
matters. Not only is it remarkably unfair to our
children and grandchildren, it is imposing costs today.
Our economic growth is slower and our wages lower than
they would be if it were smaller. Other political and
economic priorities are being squeezed out. Interest on
the debt was projected to reach $261 billion this year,
and exceed $500 billion by 2020 even before factoring
in the recent budget-busting deals.''.
(D) In August of 2016, President of the Committee
for a Responsible Federal Budget, Maya MacGuineas,
said, ``The evidence is clear: Reducing our projected
long-term debt will promote economic growth; increasing
debt will slow that growth.''.
(E) According to the GOP Platform in 2016, ``Our
national debt is a burden on our economy and families.
The huge increase in the national debt demanded by and
incurred during the current Administration has placed a
significant burden on future generations. We must
impose firm caps on future debt, accelerate the
repayment of the trillions we now owe in order to
reaffirm our principles of responsible and limited
government, and remove the burdens we are placing on
future generations. A strong economy is one key to debt
reduction, but spending restraint is a necessary
component that must be vigorously pursued.''.
(5) Since the beginning of the Global War on Terror, the
Overseas Operations in Iraq, Afghanistan, and other War on
Terror-related activities have added an estimated $1.7 trillion
to the national debt (according to figures by the Congressional
Research Service and the Congressional Budget Office).
(6) Several academic and media reports project total
spending and future obligations for the Overseas Operations in
Iraq, Afghanistan, and other War on Terror-related activities
to cost between $4 trillion and $6 trillion (a recent report by
the Cost of War project at Brown University estimates the costs
through 2053 as $4.792 trillion).
(7) If the Donald J. Trump Wealth Tax raises the $5.7
trillion that President Trump expected it would in 1999, it
would cover all current and future obligations incurred by the
Global War on Terror and reduce the debt to GDP ratio from 77
percent to 46 percent.
(8) On February 28, 2017, President Trump declared in his
speech before Congress that, ``Democrats and Republicans should
get together and unite for the good of our country and for the
good of the American people.''.
(9) In the spirit of bipartisanship, we introduce the
Donald J. Trump Wealth Tax to fulfill his promise to the
American people and substantially reduce our national debt.
SEC. 3. DONALD J. TRUMP WEALTH TAX.
(a) Tax Imposed.--There is hereby imposed a tax equal to 14.25
percent of so much of the net worth of any individual who is a citizen
or resident of the United States, or any applicable trust, as exceeds
$10,000,000.
(b) Valuation.--For purposes of this section, net worth shall be
determined as of the date of the enactment of this Act under rules
similar to the rules for determining the taxable estate of a decedent
under chapter 11 of the Internal Revenue Code of 1986, except that in
the case of any married individuals, the tax imposed by this section
shall be determined jointly.
(c) Trusts.--For purposes of this section--
(1) Applicable trust.--The term ``applicable trust'' means
any trust which is not treated as a grantor trust under such
Code and which is--
(A) a domestic trust; or
(B) any portion of a foreign trust which is
allocable, under such rules as the Secretary of the
Treasury may prescribe, to one or more beneficiaries
who are citizens or residents of the United States.
(2) Grantor trust.--The net worth of any grantor trust
shall be taken into account by the grantor in determining the
tax imposed by this section.
(d) Exclusion of Principal Residence and Its Indebtedness.--The
value of any principal residence (within the meaning section 121 of
such Code), and any acquisition indebtedness (as defined in section
163(h)(3)(B) of such Code) with respect thereto, shall not be taken
into account under subsection (a).
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