Elizabeth Warren revives the wealth tax, citing pandemic inequalities

Henrietta Strickland
March 3, 2021

The Ultra-Millionaire Tax Act as proposed includes several provisions to block tax evasion, including a $100 billion investment in the Internal Revenue Service, a 30% minimum audit rate for taxpayers subjected to the tax and a 40% so-called exit tax on net worth above $50 million of Americans who renounce their citizenship in an attempt to get out of paying the tax.

"While I think Senator Warren and her proposal would try to beef up the IRS, you would still have the incentive for wealthy households to try to reduce their liability", York said."The problem exists today with the estate tax and I don't think you could just make it disappear when you implement a far more broad-reaching tax like the wealth tax". It would also put a 1% annual surtax on households and trusts over $1 billion.

"They can afford it" is not an argument. Sticking it to the rich has a long history on the left and it invariably comes a cropper when it meets reality.

"We have watched the wealth of the billionaire class in America increase by more than a trillion dollars over the a year ago", Warren said at a press conference on Monday. "We have watched the wealth of the billionaire class in America increase by more than a trillion dollars over the previous year".

The United States has never had a comprehensive wealth tax, and while some European countries have them, many more have repealed wealth taxes over the past several decades.

Sen. Warren's wealth tax base would consist of a household's financial and nonfinancial assets, like stocks and land, at market prices, minus a household's debts.

There are nearly certainly very rich people whose wealth is tied up in their businesses.

The bill would also establish a 30% minimum audit rate for taxpayers subject to the Ultra-Millionaire Tax, as well as a 40% "exit tax" on the net worth above $50 million of any USA citizen who renounces their citizenship in order to escape paying the tax. How is their income structured? Net worth is not the best yardstick to determine great wealth.

"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", Jayapal said in a written release. "Two Cents" - referring to the 2-cent tax an ultrawealthy taxpayer would owe on each dollar - even adorned her campaign merchandise and was chanted at rallies.

Warren, a new member of the Senate Finance Committee, has long sought a tax increase on millionaires and billionaires in the U.S. A University of California Berkeley analysis, cited by Warren, estimates that the tax would generate $3 trillion in revenue over 10 years. The wealth share of the richest 0.1% has almost tripled since the late 1970s. Jayapal also noted the racial wealth gap with White families having an average wealth that is 14 times that of Black families and eight times as much as Hispanic families.

"This [2%] tax only impacts 100,000 households, but still it would bring in over $3 trillion over 10 years". Name one nation that imposed a wealth tax that returned more than a fraction of what was originally estimated?

Radicals know this but continue to pursue the rich because that's where the money is.

Other reports by Click Lancashire

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