Rep. Pramila Jayapal (D-Wash.) criticized the tax rates of billionaires and expressed dissatisfaction with the current tax system. 

Jaypal took to X on Thursday and pointed out that billionaires such as Meta Platform (NASDAQ:META) Mark Zuckerberg, legendary investor Warren Buffett, Mike Bloomberg, and Tesla Inc. (NASDAQ:TSLA) Elon Musk are taxed at a lower rate than the “average nurse” in the United States.

Jayapal, along with Senator Elizabeth Warren (D-Mass.), plans to reintroduce the Ultra-Millionaire Tax Act to rectify this situation.

The proposed legislation, also supported by Rep. Brendan F. Boyle and over 40 other lawmakers, would apply a 2% annual tax and 1% surcharge (total 3% annual tax) to fortunes above $50 million. The Ultra-Millionaire Tax Act aims to reduce inequality by requiring the richest 0.15% of U.S. households, about 260,000, to pay more taxes, helping level the playing field and narrow the racial wealth gap.

According to a new analysis, the bill could generate $6.2 trillion in revenue over the next decade, more than double the score of the bill when it was first introduced five years ago.

This revenue could fund investments like universal child care, free community college, Medicare expansion, and more — without raising taxes on 99.85% of American households.

Wealth Tax Push Gains Momentum

The move comes at a time when wealth disparity is a hot topic in the United States. Washington state recently made history by signing Senate Bill 6346, the Millionaires' Tax, into law. The bill taxes incomes above $1 million and directs a growing share of revenue back to families and small businesses, funding free school meals, expanded tax credits, affordable childcare, and eliminating sales tax on diapers and OTC drugs.

Meanwhile, earlier in March, Sen. Bernie Sanders (I-VT) and Ro Khanna (D-Calif.) introduced the Make Billionaires Pay Their Fair Share Act, proposing a 5% wealth tax on U.S. billionaires, which could fund $3,000 payments to millions of Americans. The plan targets about 938 billionaires as part of efforts to reduce inequality.

Jamie Dimon Differs

However, not everyone agrees with the idea of increasing taxes on the wealthy. Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), has expressed confusion over what is meant by billionaires not paying their “fair share.” He argued that higher taxes alone won't solve underlying issues, urging reforms to policy gaps and better use of government funds instead.

Dimon also warned of a growing migration from high-cost states like California and New York to places such as Nevada and Florida, saying the trend is hurting major cities.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.

Image via Shutterstock