Create Equitable Ownership of Wealth, Strengthen Social Well Being, and Promote Economic Growth

 

The purpose of this bill is to promote and incentivize the equitable ownership of wealth,

minimize excessive concentration of capital, implement fair and proportionate taxation, and reinforce the social

well-being of Minnesota residents. This act encourages and rewards economic contribution and growth while ensuring

opportunities for productivity among all citizens.

 

The concentration of wealth creates economic stagnancy and widens the wealth gap. Large corporations and stock holders

maintain a disproportionate amount of wealth and contribute to inequality in our communities. A progressive corporate

and unrealized wealth tax will address the imbalances while ensuring everyone is fairly benefitted and protected.

 

1. Unrealized wealth shall be defined as monetary value of an asset that has not been

sold

2. Wealth Taxable Entities shall be defined as any individual or entity whose net holdings in

stocks, bonds, or other unrealized wealth and intangible financial assets exceeds fifteen million dollars ($15,000,000).

Realized wealth and tangible assets are excluded.

2.1.1. Net holdings will be calculated at the total market value on the final day of the respective fiscal year

3. Diversification Tax Credit shall be defined as 3% tax credit for

3.1.1. entities whose largest stock does not exceed 33% of entire holdings,

3.1.2. Fair Growth Certified Businesses, or

3.1.3. Businesses which employ at least 5 permanent residents of their residing cities (living in the city for a minimum

of 6 months)

4. Fair Growth Certified Business (FGCB) shall be defined as any corporation or partnership

that fully complies with the EWOA. FGCB’s receive a Diversification Tax Credit. Entities

who receive the designation are free to use it in marketing and communications.

5. State-operated grocery store shall be defined as a tax funded store providing essential

goods and groceries at controlled prices

6. A dignified shelter shall be defined as an official government shelter for unhoused

(permanently or temporarily) persons meeting standards for security, hygiene, health, and social services (including,

but not limited to, free MInnesota state ID applications, applications for federal and state programs, etc.)

7. Paid volunteer program shall be defined as a program allowing residents within Dignified

Shelters opportunities in local projects for monetary compensation.

8. Equitable Ownership Fund shall be defined as a fund where revenue collected under this

act is deposited. Used to fund programs listed in section IV.

9. Minnesota Equity of Wealth Compliance Agency (MEWCA) shall be defined as the

government agency commissioned under this act in order to monitor and enforce the

regulations of the EWOA. The MEWCA responsibilities include collecting revenue to be

deposited into the Equitable Ownership Fund, ensuring compliance with entities and

individuals, and enforcing penalties listed in section V.

 

1. Wealth Taxable Entities will pay a percentage of the market value of their holdings, determined annually and

implemented through progressive rates, starting at 2%, increasing by 1.5% per $2,000,000 above the $15,000,000 minimum

threshold. Rates are capped at 8%.

2. Corporations with an annual revenue of at least $10,000,000 are subjected to a tax rate

of 1.5%. For every additional $25,000,000 in annual revenue, the tax rate will receive an

increase of 0.5%, being capped at 3.5%. “Small” or locally owned businesses below

$10,000,000 in revenue are exempt to encourage entrepreneurship.

3. All revenue is deposited into the Equitable Ownership Fund, which is used to maintain

state-operated grocery stores, dignified shelters, paid volunteer programs, and the

proceedings of the MEWCA. Excess funds (if any), which will be determined through agreement in Minnesota legislature,

will be used to fund other social programs within

the state

 

1. Failing to report holdings will result in a civil penalty including repayment of owed taxes plus 10% of the market

value of unreported assets.

1.1.1. Criminal liability applies to any entity or individual who knowingly, intentionally, or deliberately attempts to

misreport revenue and net holdings in

order to evade taxes listed under this act, or criminal investigation when over 20% of net dues are misreported. Civil

penalties still apply.

1.1.2. Transfers to closely related parties or repurchases of unrealized wealth within a year will be liable to the

civil penalty

2. State-operated grocery stores and dignified shelters will be inspected bi-annually in order to ensure sufficient

standards, upkeep, and efficiency. Failure to maintain minimum standards will be audited by the MEWCA, which will

provide correction and

training.

3. The MEWCA is authorized and responsible for the enforcement of these rules for all

entities. The agency will keep an updated registry of FGCB designated businesses.

 

This bill shall take effect at the start of Fiscal Year '27