Massachusetts Senator Elizabeth Warren recently called for an annual tax for Americans with $50 million wealth and above. She said in an interview with MSNBC that ‘Wealth Tax’ can ‘help build opportunity for the rest of America.’
The proposed tax for America’s 0.1 per cent population will raise approximately $2.75 trillion over ten years, according to economist Emmanuel Saez.
It is known that Harvard professor made an announcement last year of an exploratory committee for President, challenging Trump for 2020 elections. The proposed tax is one of Warren’s move to fight economic inequality that is evident to America today. She is eager to pursue policies that promote economic fairness.
In the announcement video, Senator Warren said, “Our government is supposed to work for us, but instead, it has become a tool for the wealthy and well-connected.”
Warren also has plans to counter tax evasion by raising funding for the IRS. And for those high earners who have plans to renounce their citizenship, a one-time tax penalty will be imposed.
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Experts, like the global chief investment of Guggenheim Partners Scott Minerd, said that ‘by the time we get to the presidential election, this is going to gain more momentum.”
Minerd also mentioned that wealth tax is completely different from Representative Alexandria Ocasio-Cortez’s proposal for income tax. The wealth tax targets equality by charging the due tax for individuals earning more than 50 million annually.
Many experts are confident that Wealth Tax would pass constitutional draft. In fact, according to director of tax policy at the Institute on Taxation and Economic Policy Steve Wamhoff, the Wealth Tax proposed by Warren would ensure that the wealth of the high net worth taxpayer is treated the same as the middle class.
The tax-the-rich policies are already common in politics, with some candidates already proposed an increase of tax for ultra-rich Americans. Trump, during 1999 presidential bid, has explored this similar move but impose a one-time 14.25 per cent tax on individuals earning above $10 million.
