Wednesday, January 30, 2019
Massachusetts' Senator and Presidential candidate Elizabeth Warren is set to propose a new "wealth tax" for citizens with more than $50 million in assets. The 2% tax (3% for those worth $1 billion or more) is an attempt to resolve the intense wealth inequality in the country.
The tax on the wealthy would bring the federal government $2.75 trillion over the course of a decade from 75,000 families, which would be 0.1% of American households, says Emmanuel Saez, an economist from the University of California who is advising Senator Warren.
Though Warren's campaign declined to comment on the details of the plan, a person close to campaign provided a few of the intricacies. These including increasing the funding to the Internal Revenue Service significantly, requiring a certain number of taxpayers that subject to the wealth tax to be audited every year, and a one-time tax penalty for those that have more than $50 million in assets and attempt to renounce their American citizenship.
Combined with the marginal tax increase proposed by Representative Alexandria Ocasio-Cortez of 70% for those making $10 million or more, the ideas being put forth by many Democrats show how the economic goals of the party are shifting.
See Jeff Stein & Christopher Ingraham, Elizabeth Warren to Propose New ‘Wealth Tax’ on Very Rich Americans, Economist says, Washington Post, January 24, 2019.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.