U.S. Senator Elizabeth Warren (D-Mass.) is introducing a bill to raise more taxes on super-wealthy individuals which would, her office suggests, result in $3 trillion for government coffers over a 10-year period.
The soak-the-rich plan, called the Ultra-Millionaire Tax Act, would levy a new 2 percent tax each year on households (and trusts) worth at least $50 million. Households valued in excess of $1 billion would be hit with an additional one percent tax assessment. Billionaires would have to pony up six percent if Congress enacts a Medicare-for-All plan.
Plus, under the bill’s terms, anyone in this super-wealthy category would have about a one in three chance of getting audited by the IRS. Warren wants to increase the agency’s budget by $100 billion for enforcement activities.
Warren’s legislation, which purportedly would only target about 100,000 households, also contains what amounts to a non-escape clause that would impose a 40 percent tax on anybody who gives up their U.S. citizenship to dodge the rate.
“A wealth tax is popular among voters on both sides for good reason: because they understand the system is rigged to benefit the wealthy and large corporations. 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,” the failed 2020 presidential candidate explained in a statement, Fox Business reported.
Warren wants to spend the money on child care, education, and infrastructure. and has lined up seven Senate co-sponsors for the Ultra-Millionaire Tax Act, including Bernie Sanders.
Identical legislation is reportedly set to be introduced in the U.S. House by Democrats Pramila Jayapal (D-Wash.) and Brendan Boyle (D-Pa.). “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 dollars into our communities so we can make a real difference in the lives of people across America,” far-left Jayapal claimed.
This legislation is similar to what Warren, who with her husband has an estimated net worth of $12 million, proposed during the campaign. According to various media reports, the bill has no chance of passing in the 50-50 Senate at this time, however, particularly since the proposal apparently lacks the support of Joe Biden and Treasury Secretary Janet Yellen. Biden purportedly favors tax increases on those who make more than $400,000 yearly.
Well-heeled movers and shakers on Wall Street, in Hollywood, in the sports industry, and in other affluent enclaves generally support Democrats, which might be another reason why the bill wouldn’t gain traction in the Democrat-controlled Congress.
“Critics of a wealth tax say that it would hurt U.S. competitiveness, discourage investment and ultimately be ruled unconstitutional by the courts,” Fox News added.
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