Senator Elizabeth Warren and other progressive U.S. lawmakers have proposed the Ultra-Millionaire Tax Act, which would impose a 2% annual tax on households and trusts valued at between $ 50 million and $ 1 billion, and a 3% tax on all net worth over $ 1 billion.
Senator Elizabeth Warren, accompanied by Representatives Pramila Jayapal and Brendan Boyle, has proposed a new wealth tax for households with net worth over $ 50 million.
Lawmakers said on Monday that the new tax, dubbed the Ultra-Millionaire Tax Act, would create a “fairer” economy with a 2% annual tax on households and trusts valued between $ 50 million and $ 1 billion. Any net worth over $ 1 billion would be taxed at 3%.
The group says the proposal would generate “at least $ 3 trillion in revenue over 10 years,” citing a Feb. 24 analysis by economists Emmanuel Saez and Gabriel Zucman at the University of California-Berkeley.
“The ultra-rich and the powerful have rigged the rules so much in their favor that the richest 0.1% pay a lower effective tax rate than the poorest 99%, and the wealth of billionaires is 40%. higher than before the onset of the COVID crisis, ”Warren said. in a report. “A wealth tax is popular with voters on both sides for a good reason: because they understand the system is rigged for the benefit of the rich and big business.”
A wealth tax would be difficult to pass in the current US Senate, which is equally divided between Democrats and Republicans. Democrats control the agenda, as Vice President Kamala Harris can sever ties, but most bills require the support of 60 senators to move forward.
And Democrats have been unable to muster even 50 votes on some of the administration’s proposals, including an hourly minimum wage of $ 15. A wealth tax would probably be even more divisive.
However, Democrats plan to use special budget reconciliation procedures to pass a simple-majority bill later in the year that will include parts of a vast array of infrastructure. At this point, the taxes to be paid for the construction would be on the table. And by Senate rules, tax increases are generally allowed in budget bills.
Co-sponsors of the bill include Budget President Bernie Sanders of Vermont, Sheldon Whitehouse of Rhode Island, Jeff Merkley of Oregon, Kirsten Gillibrand of New York, Brian Schatz of Hawaii, Ed Markey of Massachusetts and Mazie Hirono, also from Hawaii.
Jayapal is from Washington State and Boyle is from Pennsylvania.
(Add income estimate in 3rd paragraph)