Warren and fellow progressives suggest ‘Extremely-Millionaire’ tax | Enterprise and Economic system Information

Senator Elizabeth Warren and other progressive United States lawmakers proposed the Ultra-Millionaire Tax Act, which would impose a two percent annual tax on households and trusts valued between $ 50 million and $ 1 billion and a three percent tax on all Would raise net assets in excess of $ 1 billion.

Senator Elizabeth Warren, along with Representatives Pramila Jayapal and Brendan Boyle, proposed a new wealth tax for households with a net worth of more than $ 50 million.

Legislators said Monday the new tax, dubbed the Ultra Millionaire Tax Act, would create a “fairer” economy with a 2% annual tax on households and trusts valued at $ 50 to $ 1 billion. All net assets over $ 1 billion would be taxed at 3%.

The group claims the proposal would “generate at least $ 3 trillion in sales over 10 years,” citing a Feb. 24 analysis by University of California-Berkeley economists Emmanuel Saez and Gabriel Zucman.

“The ultra-rich and powerful have rigged the rules so much in their favor that the top 0.1% pay a lower effective tax rate than the bottom 99%, and billionaires’ fortunes are 40% higher than before the onset of COVID -Crisis, “Warren said in a statement. “A wealth tax is popular with voters on both sides for good reason: because they understand that the system is rigged to benefit rich and large corporations.”

A wealth tax would be difficult to pass in the current US Senate, which is evenly 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 couldn’t even get 50 votes from some administrative proposals, including a minimum wage of $ 15 an hour. A wealth tax would probably be even more divisive.

However, the Democrats plan to use special budget reconciliation procedures to pass legislation later in the year by simple majority that will contain parts of a massive infrastructure package. At that point, taxes for the expansion would be on the table. And under the rules of the Senate, tax increases are generally allowed in household bills.

The law’s co-sponsors include Household Chair 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 of Hawaii.

Jayapal is from Washington State and Boyle is from Pennsylvania.

(Adds a sales estimate in the 3rd paragraph.)