This legislation introduces an annual wealth tax on the net value of all taxable assets held by individuals, effective for calendar years beginning after December 31, 2026. The tax applies progressively, with a 0% rate for assets up to $50 million . A 2% tax is imposed on assets valued between $50 million and $1 billion , while assets exceeding $1 billion are taxed at 3% . Notably, this top rate could increase to 6% if comprehensive national health insurance legislation, prohibiting private entities from providing duplicate benefits, is in effect. The "net value of all taxable assets" encompasses all real or personal, tangible or intangible property, wherever situated, reduced by any debts owed by the taxpayer. Certain assets are excluded, such as tangible personal property valued at $50,000 or less , provided it is not used in a trade or business, for income production, or classified as a collectible, boat, aircraft, vehicle, or antique that maintains or increases value. The bill also specifies rules for attributing property held in various trusts and includes a right of recovery for individuals paying tax on trust-held assets. The Secretary of the Treasury is mandated to establish comprehensive rules for asset valuation within 12 months, including for non-publicly traded assets, potentially using formulaic methods and addressing valuation discounts. To ensure compliance, the bill requires extensive information reporting and mandates annual audits for at least 30% of taxpayers subject to the wealth tax. Special provisions address deceased individuals, non-residents, and covered expatriates, with the latter facing a 40% tax rate on all taxable assets upon expatriation. The legislation introduces new accuracy-related penalties for "substantial wealth tax valuation understatements," imposing a 30% penalty (or 50% for gross misstatements) if the claimed value is significantly less than the correct amount. It also allows for extensions of time for payment, up to five years, for taxpayers facing severe liquidity constraints or undue hardship. To support the implementation and enforcement of this new tax, the bill authorizes significant appropriations for the Internal Revenue Service, including $70 billion for enforcement , $10 billion for taxpayer services , and $20 billion for business system modernization over fiscal years 2027 through 2037.