Democratic Senators Elizabeth Warren and Bernie Sanders are sponsoring the Ultra-Millionaire Tax Act. It would levy a 2% tax on households and trusts with a net worth between $50 million and $1 billion, as well as a 1% surtax on assets of $1 billion, for a 3% annual tax overall on billionaires.
Republicans will no doubt be screaming about socialism and communism, but it’s not much different than the property tax levied on most of the middle class. Anyone who owns real property in the US knows most all of us pay taxes on it. The ones who get the biggest breaks are usually wealthy developers. The ultra wealthy get plenty of breaks already, as evidenced by Trump’s infamous $750 tax returns, and the fact that Amazon paid zero in federal income taxes last year.
Republicans have already been screaming and complaining about how we can’t afford Biden’s Covid relief bill, and this new tax would pay for it and more. It could help to pay for Biden’s other plans, as well as the tax cuts for the rich that the prior administration handed out without a peep of Republican concern.
The bill also addresses income inequality. The most wealthy have enjoyed an economic windfall during the Covid pandemic, while those on the other end of the spectrum have suffered greatly from the consequential economic downturn. But some question whether such a wealth tax is Constitutional, and while it could bring in over $3 trillion over a decade, it can be difficult to administer since the rich often have assets that are hard value.
This may be a good start at getting rid of some of the tax loopholes for the ultra-wealthy. Hopefully, there will be more to come.