Senator Elizabeth Warren, D-Mass., is reigniting plans for a wealth tax on the nation’s richest people and families.
Warren’s team claimed the far-left Democrat wants to introduce a bill that would create a wealth tax on people who have a net-worth, as she claims, of more than $50 million. This is at a time when she is joining the Senate Finance Committee.
As compared to taxes on payrolls and income, a wealth tax targets the value of accumulated assets owned by wealthy and sometimes upper middle class Americans. The agenda, generally, is to fight growing economic inequality, creating what Democrats say is a level playing field between wealthy and poorer Americans.
During her push for the presidency in 2020, Warren put forward the idea of a wealth tax which was called her “ultra-millionaire tax,” and her new pending proposal is probably going to follow those same parameters, the senator’s team said.
The wealth tax would be levied against those with over $50 million in net-worth. The tax would be 2 percent, but would increase for those with assets of more than $1 billion. Warren’s starting proposal called for the rise to go to 3% — though she later changed it to 6%.
Democrats claim the tax would bring in $2.75 trillion for social programs over the course of 10 years and would only apply to about 75,000 households.
The wealth tax, which is created to redistribute wealth from the wealthier population, would raise the taxes on the rich by 1.1% to 4.3%.
Other Democrats like Sen. Bernie Sanders, I-Vt. have also proposed wealth taxes.
The proposals were divisive and were widely criticized during the presidential cycle, with strangely, some of the nation’s billionaires supporting the idea.