Sen. Elizabeth WarrenElizabeth WarrenSenate mulls changes to .9 trillion coronavirus bill Exclusive: How Obama went to bat for Warren Minimum wage setback revives progressive calls to nix Senate filibuster MORE (D-Mass.) on Monday unveiled legislation to create a wealth tax for high-net-worth households, furthering her efforts on an idea that was a central feature of her 2020 presidential campaign.
The bill, called the Ultra-Millionaire Tax Act, would create an annual tax of 2 percent on the net worth of households and trusts between $50 million and $1 billion and a tax of 3 percent on net worth above $1 billion. The rate for net worth above $1 billion would increase to 6 percent if a “Medicare for All” health care plan is enacted.
The bill resembles a proposal that Warren released during her unsuccessful presidential campaign and frequently touted on the campaign trail. The rollout of the bill comes after Warren indicated earlier this year that introducing wealth tax legislation would be a top priority of hers as a new member of the Senate Finance Committee, which has jurisdiction over tax issues.
Warren said in a news release that her proposal could be a way to help pay for proposals to help the economy recover from the coronavirus-related downturn.
“As Congress develops additional plans to help our economy, the wealth tax should be at the top of the list to help pay for these plans because of the huge amounts of revenue it would generate,” she said. “This is money that should be invested in child care and early education, K-12, infrastructure, all of which are priorities of President BidenJoe BidenBiden offers support to union organizing efforts Senate Democrats nix ‘Plan B’ on minimum wage hike Kavanaugh dismays conservatives by dodging pro-Trump election lawsuits MORE and Democrats in Congress. I’m confident lawmakers will catch up to the overwhelming majority of Americans who are demanding more fairness, more change, and who believe it’s time for a wealth tax.”
In an effort to prevent millionaires and billionaires from avoiding the wealth tax, the bill includes provisions to provide the IRS with an additional $100 billion, require a 30 percent minimum audit rate for households subject to the tax, and create a 40 percent tax on net worth about $50 million for people who renounce their U.S. citizenship in order to not pay the wealth tax.
Warren introduced the bill along with Rep. Pramila JayapalPramila JayapalProgressives fume over Senate setbacks House Democrats pass sweeping .9T COVID-19 relief bill with minimum wage hike Budget Committee chair pledges to raise minimum wage: ‘Hold me to it’ MORE (D-Wash.), the chair of the Congressional Progressive Caucus, and Rep. Brendan Boyle (D-Pa.), who serves on the tax-writing House Ways and Means Committee.
“The Ultra-Millionaire Tax Act will help level the playing field, narrow the racial wealth gap, ensure the wealthiest finally begin to pay their fair share, and invest trillions of…
Go to the news source: Warren bill would impose wealth tax on $50M households