Senator Elizabeth Warren (D-Mass.) Introduced a bill in the Senate on Monday that would impose a new tax on the assets of America’s wealthiest individuals.
Why does it matter: The plan, which Warren presented together with the Reps. Pramila Jayapal (D-Wash.) And Brendan Boyle (D-Pa.), It is similar to a proposal that was the centerpiece of Warren’s campaign for the presidency in 2020.
- Warren, a new member of the Senate Finance Committee, has long sought to raise taxes on millionaires and billionaires in the United States
By the numbers: The project would levy a 2% tax for people with net worth between $ 50 million and $ 1 billion. Taxpayers with assets worth more than $ 1 billion would be subject to a 3% tax.
- The tax does not apply to people whose net worth is less than $ 50 million.
- Project sponsors estimate that it would raise $ 2.75 trillion in tax revenue over a ten-year period.
What they are saying: “The ultra-rich and powerful have manipulated the rules in their favor so much that the top 0.1% pay an effective tax rate lower than the bottom 99%, and the wealth of billionaires is 40% higher than before. beginning of the COVID crisis, “Warren said in a press release.
- “A fortune tax is popular with voters on both sides for good reason: because they understand that the system is rigged to benefit large and wealthy corporations.”
Where is it: The move is likely to perform better in the Democratic-controlled House than in the 50-50 Senate, where bills generally need to get 60 votes.
Go deeper: What to know about Warren’s 2020 fortune tax proposal