Massachusetts Sen. Elizabeth Warren is expected to introduce a wealth tax bill after campaigning on the proposal in the Democratic presidential primary, HuffPost reports.
Warren, who is set to join the Senate Finance Committee, said her “first order of business” will be to introduce a bill that would impose a 2% tax on every dollar in individual wealth over $50 million and an additional tax on every dollar over $1 billion.
“It is time to make the ultra-rich pay their fair share,” Warren said.
“I look forward to being a progressive voice at the table to secure meaningful relief and lasting economic security for struggling families,” she added in a statement.
The committee will be led by Oregon Sen. Ron Wyden, who has called for a capital gains tax.
Tax would apply to 75,000 households:
Estimates suggest that the wealth tax would only apply to about 75,000 households.
The tax would apply to a variety of assets beyond money in the bank, including homes, stock holdings, and overseas holdings.
The tax would not apply on the first $50 million in wealth. But if a person’s net worth is $60 million, they would be levied a tax of $200,000 on the $10 million in wealth above $50 million.
Finance Committee plans to be active:
“Our to-do list is long,” Warren said. “We must provide immediate relief for families struggling under the weight of twin health and economic crises. We must make health care in America a human right and expand public programs like Medicaid and lower the Medicare eligibility age. And we must ensure those at the very top actually pay their fair share to keep America strong ― including a wealth tax on fortunes over $50 million to fund needed investments for working families.”
Warren has called for the revenues from the wealth tax to fund preschool education and child care, public schools, and the elimination of student loan debt, though implementing it could pose practical difficulties.