The billionaire's tax plan (S. 3956) introduced by Senate HELP Committee Ranking Member and Finance Committee member Bernie Sanders (I-VT) on March 2 is being viewed as a potential blueprint for Democrats in the 2028 presidential election and a reprise of a similar 5% high-income surcharge in former President Biden's Build Back Better Act, which passed the House in 2021 but stalled in the Senate. The Make Billionaires Pay Their Fair Share Act would establish a 5% annual wealth tax on billionaires to fund direct payments to those with lower incomes, rollbacks of health care cuts, and bolstering health and housing policies. Economists Emmanuel Saez and Gabriel Zucman said the legislation would raise $4.4 trillion over 10 years.

Capital gains — Senators Ted Cruz (R-TX) and Tim Scott (R-SC) are now calling on President Trump to use his executive authority to index capital gains calculations for inflation. Conservative tax activists have been calling for the capital gains indexing change and some of them this week pushed GOP leaders to act on the "More Homes on the Market Act" (H.R. 1340, S. 3332) to update the principal residence capital gains exclusion by catching it up to inflation and indexing it going forward. The Washington Post reported on a letter in which Senators Cruz and Scott argue the Administration does not need congressional approval to make the change, though that point has been debatable over the years. Under the proposal, the basis of an asset is indexed for inflation, and the difference between that amount and the sale price taxed.

Taking executive action to index capital gains for inflation was discussed during the first Trump administration and has essentially arisen during each Republican presidency going back to 1992. "The Tax Section of the New York State Bar Association, in February 1992, sent a memorandum discussing not only the problems of indexing by regulation but also taking the position that such indexation by regulation was invalid," according to the Congressional Research Service (CRS). "Reportedly, the issue was considered by the George H. W. Bush Administration with some disagreement among officials."

The Post story said, "The senators also frame the proposal as a potential solution to the nation's housing market, arguing that many homeowners are choosing to stay in their properties rather than sell and face a steep capital gains bill." Currently, an individual taxpayer may exclude from gross income up to $250,000 ($500,000 joint) of gain realized on the sale or exchange of a principal residence, though the amount is not indexed for inflation. President Trump said in July 2025 he was considering proposing no tax on home sales capital gains.

More broadly, affordability issues continue to be a priority for both parties ahead of the midterm elections. Following the regular Tuesday party lunches, Senate Democratic leader Chuck Schumer (D-NY) said regarding international events and the expiration of enhanced Affordable Care Act (ACA) premium tax credits: "Trump's war will easily cost more than it would have cost to extend the ACA tax credits. This President and this Republican Congress have shown the American people there's always money for war, there is always money for billionaire tax breaks, it's just everyday Americans who are struggling with their healthcare or groceries who Republicans just can't spare a dime."

Tax administration — Today (March 4) at 10 a.m., the House Ways and Means Committee is holding a hearing with IRS Chief Executive Officer Frank Bisignano to discuss the 2026 filing season, implementation of the One Big Beautiful Bill Act (OBBBA), and the Trump administration's priorities for the IRS. Republicans would be expected to highlight provisions of the OBBBA — no tax on tips, overtime, Social Security benefits — and benefits to taxpayers, including potentially bigger refunds. Democrats are likely to inquire about reports of IRS sharing taxpayer information with the Department of Homeland Security.

Also today:

• the Joint Economic Committee has scheduled a hearing at 10:30 a.m. on "Evaluating the U.S. Competitiveness and Investment Advantages of a Destination-Based Cash Flow Tax (DBCFT)"
• the Joint Committee on Taxation is holding a "Panel on The Joint Committee's Role in the Tax Legislative Process in the Past and the Future" from 2:30 to 4:30 p.m.

Health care — On Thursday, March 5 at 10 a.m., the Senate HELP Committee will hold a hearing on "Transforming Health Care with Data: Improving Patient Outcomes Through Next-Generation Care."

Elections — One of the main contests in Tuesday's primaries was the Texas Senate match-up that, on the Republican side, had Senator John Cornyn (R-TX) challenged by State Attorney General Ken Paxton (R) and Rep. Wesley Hunt (R-TX). With no candidate receiving votes that exceed the 50% vote threshold, a May 26 runoff follows between Cornyn and Paxton. On the Democratic side, state Rep. James Talarico (D) defeated Rep. Jasmine Crockett (D-TX).

As expected, the open North Carolina Senate race will be Democratic former Gov. Roy Cooper against former Republican National Committee Chair Michael Whatley, after both won their primaries.