Sen. Elizabeth Warren
Elizabeth WarrenSenate ponders changes to the 0.9 trillion coronavirus bill Exclusive: how Obama fought for Warren Lowering the minimum wage revives progressive calls for Senate obstructionist nix MORE (D-Mass.) On Monday it unveiled legislation to create a wealth tax for high-net-worth families, promoting its efforts on an idea that was a central feature of its 2020 presidential campaign.
The bill, called the Ultra-Millionaire Tax Act, would create a 2% annual tax on the equity of families and trusts between $ 50 million and $ 1 billion and a 3% tax on equity above US $ 1 billion. The equity rate above $ 1 billion would rise to 6% if a Medicare for All health plan was approved.
The bill resembles a proposal that Warren launched during his unsuccessful and often praised presidential campaign. The implementation of the bill comes after Warren indicated earlier this year that introducing wealth tax legislation would be one of her top priorities as a new member of the Senate Finance Committee, which has jurisdiction over tax issues.
Warren said in a press release that his proposal could be a way to help pay for proposals to help the economy recover from the coronavirus-related crisis.
“As Congress develops additional plans to help our economy, wealth tax should be at the top of the list to help pay for these plans, due to the huge revenue it would generate,” she said. “This is the money that should be invested in daycare centers and early childhood education, elementary and high school, infrastructure, all priorities for President biden
Joe BidenBiden supports Senate Democrats ‘Plan B’ union organizing efforts to raise the minimum wage Kavanaugh discourages conservatives by dodging pro-Trump electoral processes MORE and Democrats in Congress. I am confident that lawmakers will reach the overwhelming majority of Americans who are demanding more justice, more change and who believe it is time for a wealth tax.
In an effort to prevent millionaires and billionaires from avoiding wealth tax, the bill includes provisions to provide the IRS with an additional $ 100 billion, require a minimum audit fee of 30 percent for taxable households and create a 40 percent tax on the net is worth about $ 50 million for people who renounce their US citizenship to not pay the wealth tax.
Warren presented the bill with the representative. Pramila Jayapal
Pramila JayapalProgressives rages at setbacks in the Senate House Democrats pass .9T COVID-19 relief bill with minimum wage increase The Budget Committee chairman promises to raise the minimum wage: ‘Hold me’ MORE (D-Wash.), The President of the Congressional Progressive Caucus and Deputy Brendan Boyle (D-Pa.), Who serves on the Forms and Means Committee of the Tax Drafting Chamber.
“The Ultra-Millionaire Tax Act will help to level the playing field, reduce the racial wealth gap, ensure that the wealthiest finally start paying their fair share and invest trillions of dollars in our communities so that we can make a real difference in lives of people across America, “said Jayapal in the statement.
Several progressive senators also co-sponsored the bill, including the senator. Bernie Sanders
Bernie SandersSenata Democrats nix ‘Plan B’ on minimum wage increase Senate ponders changes to .9 trillion NFL coronavirus bill Justin Jackson praises Sanders for opposing USDA’s Biden nominee MORE (I-Vt.), Who, like Warren, called for a wealth tax during the 2020 Democratic presidential primaries. The project is also supported by several progressive groups and labor unions.
The bill is unlikely to be enacted in the near future. Biden did not ask for a wealth tax, and the Treasury Secretary Janet Yellen
Janet Louise Yellen Financial regulators highlight climate risks Treasury announces sanctions against Saudi officials after Khashoggi report Survey: Biden’s approval remains stable in the eyes of Democrats .9 T COVID-19 relief project MORE said last week that such a tax would have “very difficult implementation problems.” But the publication of a legislative text to create a wealth tax is expected to advance the debate among Democrats about how best to tax the wealthy and increase revenue to offset the cost of spending priorities.
Along with the release of the bill, Warren’s office released a revenue estimate from the University of California, economists Emmanuel Saez and Gabriel Zucman of Berkeley, discovering that the bill would raise about $ 3 trillion from 2023 to 2032, as well like two letters from law professors who argue that the proposal is constitutional.
Warren’s office also highlighted a survey conducted last year by the left-wing company Data for Progress, which found that the majority of voters in the surveyed states supported a wealth tax for individuals with net worth over $ 50 million.