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Working Draft — Version 2, 2026 · Policy framework, not an introduced bill

Plan for ProsperityNonpartisan fiscal framework
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Pillar A

Revenue Optimization

Broadens the federal tax base by closing the tax gap, aligning corporate rules with international standards as political conditions permit, and pricing carbon with a household dividend. Avoids increases in marginal rates on labor income below $400,000.

+$5.0 trillion · 10 policies · $3.7T–$6.8T over 10 years

How to read the indicators

  • Fiscal. 10-year base case. Navy = revenue; green = savings; gold = scored investment cost.
  • Timeline. Highlighted span on a 20-year bar. “+” means work continues past Year 20.
  • Middle class. Hold-harmless test for households $40,000–$150,000.
  • Planetary. Climate and resource effect, independent of the fiscal score.

A1 · Pillar A

Standalone page

Corporate tax modernization

10-year fiscal
+$950BRevenue

$700B–$1.2T · Medium confidence

Implementation
Years 1–7
Y1Y10Y20
Middle class
Positive

Shields labor income from compensating tax increases. No new wage rates below $400,000.

Planetary
Neutral

No material climate effect.

Description

Restructure the federal corporate income tax to align with OECD Pillar Two minimum standards over a medium-term horizon, including GILTI reform as a country-by-country qualifying minimum tax, interest-deductibility limits, and tighter base-erosion rules. Full international alignment is contingent on administrations supportive of coordination; domestic GILTI and minimum-tax components can proceed independently.

Global precedent

OECD Inclusive Framework Pillar Two, with over 140 participating jurisdictions and about 60 implementing the 15 percent global minimum in 2024–2025. Early-implementation jurisdictions show reduced profit-shifting and modest increases in domestic corporate tax revenue.

Lead mechanism

Treasury; Senate Finance; House Ways and Means.

Bipartisan framing

Conservative case

Levels the global playing field for U.S. firms competing against companies based in tax havens; reduces incentives for inversions.

Progressive case

Ensures large corporations pay a meaningful share of federal taxation.

The OECD framework was negotiated under the prior Trump administration and reflects U.S. competitiveness interests.

A2 · Pillar A

Standalone page

Capital gains and carried interest

10-year fiscal
+$320BRevenue

$250B–$400B · Medium-High confidence

Implementation
Years 2–4
Y1Y10Y20
Middle class
Neutral

Applies only above the $1 million AGI threshold.

Planetary
Neutral

No material climate effect.

Description

Tax long-term capital gains and qualified dividends at ordinary income rates for taxpayers with AGI above $1 million, while preserving preferential rates for middle-class investors. Eliminate the carried-interest preference for investment-fund managers, taxing such income as ordinary compensation. Phase in over three years.

Global precedent

Most OECD jurisdictions tax capital gains and labor income at similar rates above defined thresholds. The United Kingdom modified its analogous carried-interest regime in 2025.

Lead mechanism

Treasury and IRS; Senate Finance; House Ways and Means.

Bipartisan framing

Conservative case

Removes a distortion that favors financial-sector compensation over productive labor.

Progressive case

Eliminates a long-criticized preference disproportionately benefiting the highest-income filers.

A3 · Pillar A

Standalone page

Estate and transfer tax reform

10-year fiscal
+$550BRevenue

$400B–$700B · Medium confidence

Implementation
Years 2–4
Y1Y10Y20
Middle class
Neutral

Even at the restored $7 million threshold, the affected population is about the top 0.5 percent of decedents.

Planetary
Neutral

No material climate effect.

Description

Restore the federal estate-tax exemption to approximately $7 million per individual (the 2017 pre-TCJA level, indexed) from the current $13.99 million; tighten valuation discounts for family-controlled entities; eliminate stepped-up basis for inherited assets above defined thresholds, with surviving-spouse and primary-residence carve-outs.

Global precedent

Estate or inheritance taxes operate in most OECD jurisdictions. The United Kingdom, Germany, France, and Japan retain them; some Nordic countries have eliminated theirs.

Lead mechanism

Treasury and IRS; Senate Finance; House Ways and Means.

Bipartisan framing

Conservative case

Restores pre-TCJA architecture and addresses dynastic wealth concentration.

Progressive case

Reduces intergenerational wealth concentration that constrains social mobility.

A4 · Pillar A

Standalone page

IRS modernization and tax-gap enforcement

10-year fiscal
+$500BRevenue

$300B–$700B · High confidence

Implementation
Years 1–5
Y1Y10Y20
Middle class
Neutral to positive

Middle-class audit rates remain unchanged. The gap is concentrated at the top.

Planetary
Neutral

No material climate effect.

Description

Sustained multi-year investment in IRS information technology, audit capacity for high-income and complex-entity returns, partnership and pass-through compliance, and international infrastructure. Structured as a stable multi-year appropriation with performance metrics. Audit-rate increases apply above $400,000 AGI.

Global precedent

The Australian Tax Office Tax Avoidance Taskforce and HMRC modernization both show documented returns in the range of 5:1 to 9:1 over multi-year horizons. The IRS-published gross tax gap is $696 billion annually for tax year 2022.

Lead mechanism

IRS; Treasury; House and Senate Appropriations.

Bipartisan framing

Conservative case

Enforces existing law and reduces the unfair burden on compliant taxpayers.

Progressive case

Addresses the documented two-tier system in which wage earners face high compliance and high-income filers face low effective enforcement.

A5 · Pillar A

Standalone page

Border-adjusted carbon fee with household dividend

10-year fiscal
+$300B net to fiscRevenue

After household dividends · Medium confidence

Implementation
Years 2–10
Y1Y10Y20
Middle class
Positive on average

The dividend exceeds pass-through costs for roughly 60–70 percent of households, concentrated in the lower-middle and middle of the distribution.

Planetary
Strongly positive

Modeled emissions 25–40 percent below baseline at full fee schedule by Year 15.

Description

A federal fee on CO2-equivalent emissions from fossil-fuel extraction and processing, beginning at $40 per ton and rising on a defined schedule, with a border adjustment on imports from jurisdictions without comparable pricing. Net revenue is returned to households as a quarterly per-capita dividend, with a rural multiplier. Designed to be revenue-neutral to households on average.

Global precedent

British Columbia’s carbon tax (2008–) is associated with about a 13 percent reduction in per-capita fossil-fuel use relative to the rest of Canada, with no detectable adverse GDP effect. Sweden’s carbon tax (1991–) and the EU Carbon Border Adjustment Mechanism provide additional templates.

Lead mechanism

Treasury; EPA (emissions monitoring); Customs and Border Protection (border adjustment).

Bipartisan framing

Conservative case

A revenue-neutral market mechanism returning money to households; the border adjustment functions as an anti-leakage competitiveness measure.

Progressive case

The central federal climate-policy mechanism, with progressive distributional outcomes through the rural-multiplier dividend.

A6 · Pillar A

Standalone page

Land-value and concentrated-holdings tax

10-year fiscal
+$150BRevenue

$50B–$250B · Low-Medium confidence

Implementation
Years 4–10
Y1Y10Y20
Middle class
Positive

Lower effective taxation of housing improvements supports homeowners and new supply.

Planetary
Positive

Encourages denser, transit-accessible development with lower per-capita emissions.

Description

Federal incentives, via conditional infrastructure and housing block grants, for state and local split-rate property taxes that tax unimproved land at higher rates than buildings. A modest federal levy on highly concentrated commercial land holdings above defined thresholds, aimed at speculation in agricultural and commercial real estate.

Global precedent

Pittsburgh and several other U.S. jurisdictions operate split-rate taxes. The Australian Capital Territory shifted from stamp duty toward land-value taxation from 2012. Estonia’s land tax has operated since 1993.

Lead mechanism

Treasury and HUD.

Bipartisan framing

Conservative case

Promotes development by reducing the tax penalty on construction and improvement.

Progressive case

Captures unearned land-value appreciation for public purposes.

A7 · Pillar A

Standalone page

High-wealth compliance and reporting

10-year fiscal
+$200BRevenue

$150B–$250B · Medium confidence

Implementation
Years 2–5
Y1Y10Y20
Middle class
Neutral

Reporting thresholds apply above $50 million net worth.

Planetary
Neutral

No material climate effect.

Description

Strengthen reporting on assets and income for taxpayers with net worth above $50 million, including expanded Form 8938 foreign-asset reporting, mandatory information returns from large private trusts and investment partnerships, and beneficial-ownership reporting for closely held entities. Paired with targeted IRS audit capacity under A4.

Global precedent

OECD Common Reporting Standard; FATCA in the United States. Norway, Denmark, and France operate automated wealth and asset reporting with documented compliance benefits.

Lead mechanism

Treasury, IRS, FinCEN; Senate Finance; House Ways and Means.

Bipartisan framing

Conservative case

Improves enforcement of existing law without rate changes.

Progressive case

Addresses documented compliance gaps among the highest-wealth households.

A8 · Pillar A

Standalone page

Financial transactions fee (limited scope)

10-year fiscal
+$600BRevenue

$400B–$800B · Low-Medium confidence

Implementation
Years 3–5
Y1Y10Y20
Middle class
Neutral

Retirement-account and small-investor carve-outs are built in.

Planetary
Neutral

No material climate effect.

Description

A modest federal fee (0.02–0.05 percent) on equity and derivative transactions, with carve-outs for retirement accounts, primary-residence transactions, and small individual-investor activity. Calibrated to high-frequency and large-block trading rather than long-horizon retail investment.

Global precedent

The United Kingdom’s stamp duty on share transactions generates about £4 billion a year. Eleven EU member states have negotiated a coordinated FTT framework.

Lead mechanism

Treasury and SEC.

Bipartisan framing

Conservative case

A user fee on financial-market infrastructure.

Progressive case

A contribution from a sector that has grown faster than the broader economy.

A9 · Pillar A

Standalone page

Tax-expenditure review and restructuring

10-year fiscal
+$250BRevenue

$180B–$350B · Medium confidence

Implementation
Years 3–15
Y1Y10Y20+
Middle class
Variable

Long-term SALT phase-down concentrates on high-tax states and uses an extended phase-in.

Planetary
Neutral

No material climate effect.

Description

Systematic review of the largest tax expenditures, prioritizing low documented return, regressive incidence, or leakage to foreign beneficiaries. Initial priorities: long-term phase-down of SALT (over 10–15 years, acknowledging the 2025 cap expansion), further limits on the mortgage-interest deduction, and tighter opportunity-zone treatment.

Global precedent

Most OECD jurisdictions operate substantially more limited tax-preference systems than the United States, with documented horizontal-equity benefits.

Lead mechanism

Treasury, Joint Committee on Taxation; Senate Finance; House Ways and Means.

Bipartisan framing

Conservative case

Base-broadening that can enable lower marginal rates.

Progressive case

Addresses regressivity of the largest tax expenditures.

A10 · Pillar A

Standalone page

Enhanced withholding and information reporting

10-year fiscal
+$1.2TRevenue

$900B–$1.5T · Medium-High confidence

Implementation
Years 2–6
Y1Y10Y20
Middle class
Positive on average

Closes the largest tax-gap component: underreported business and self-employment income.

Planetary
Neutral

No material climate effect.

Description

Extend Form 1099-style automated reporting to undercovered income — gig work, certain rental income, partnership and S-corporation distributions — with modest expansion of withholding for non-employee compensation. The objective is automated compliance, not new rates.

Global precedent

Most OECD jurisdictions operate more comprehensive withholding and information-reporting systems than the United States, with documented compliance benefits.

Lead mechanism

Treasury and IRS.

Bipartisan framing

Conservative case

Reduces compliance burden through automation; enforces existing law.

Progressive case

Addresses systematic underpayment by higher-income filers.

Figures in this framework are illustrative directional estimates derived from publicly available data and conventional Congressional Budget Office budget-window logic. They are not official CBO scores. Any provision adopted from this framework would require formal CBO scoring before legislative consideration. This document is a policy white paper, not an introduced bill.