Senator Elizabeth Warren defended her latest wealth tax proposal on Tuesday, telling CNBC that she believes that most Americans will not mind being rich enough to pay it.
The Massachusetts Democrat made the comments in an interview in the “Squawk Box”, the day after launching a proposal for an annual tax of 2%, or 2 cents, on every dollar of people’s wealth above $ 50 million. Individuals with fortunes worth more than $ 1 billion would face an annual tax of 3%, or 3 cents, on every dollar above that limit.
Warren campaigned based on a similar idea of a wealth tax during his campaign unsuccessful for the 2020 Democratic presidential nomination.
Other progressives, including Vermont Senator Bernie Sanders, joined Warren’s plan as co-sponsors. During his unsuccessful presidential campaign, Sanders also defended a tax on wealth.
“It is now established to say that we are not going to charge taxes on any asset worth less than $ 50,000, so that is not intrusive. It is not about entering people’s homes and assessing their Sub Zeros or finding out what their old cars are worth worth it, “Warren said on CNBC.
“But it says that if you have a fortune above $ 50 million, you pay for it. And if your fortune is below $ 50 million, you don’t pay. Good for you, anyway,” she added. “I think most people prefer to be rich and pay 2 cents. This is not very sophisticated. It is really a tax on wealth above $ 50 million.”
The idea of a wealth tax in the United States has faced a lot of criticism, including that of Treasury Secretary Janet Yellen, who said she had “very difficult implementation problems”.
Warren said the coronavirus crisis exacerbated inequality in the United States and demonstrated an increased need for a wealth tax to generate more federal revenue, which the proposal calls for to be invested in early childhood education and infrastructure programs.
The senator said her plan would raise $ 3.75 trillion over the next 10 years.
“We understand the direction we are taking. This pandemic has created more billionaires. The people at the top are not badly holding on to their nails,” said Warren.