New York Rep. Tom Suozzi is considering a proposal that would hit wealthy Americans who have over $50 million in wealth with a one-time “patriot tax,” The Hill reports.
Suozzi, who sits on the House Ways and Means Committee, told the outlet that his proposal would create a one-time 2.5% surcharge on those with $50 million to $100 million in assets and a 5% surcharge on those with assets worth over $100 million.
Under the proposal, those impacted by the tax would have five years to pay it.
Suozzi’s office estimated that the proposal could raise $450 billion.
Suozzi: tax the rich to fund Biden’s agenda
Suozzi, who spoke to the Hill after a report from ProPublica revealed that the country’s 25 richest billionaires pay a tiny fraction in taxes compared to their net worth increases, told the outlet that the surcharge would be a “way to help your country to build back better.”
“We all know that people who are wealthy did very well during the pandemic and people that were low-income people did not do well,” he said.
Suozzi said the revenue can help pay for some of the cost of Biden’s infrastructure proposal.
Moderate proposal vs. Warren plan:
Suozzi’s proposal is a moderate Democratic response to Sen. Elizabeth Warren’s permanent wealth tax, though it is still expected to face opposition from Republicans and potentially even the Biden White House, which has not gotten behind the idea of taxing wealth.
Warren, along with Sen. Bernie Sanders, earlier this year proposed a 2% annual wealth tax on wealth between $50 million and $1 billion and a 3% annual tax on wealth over $1 billion.
"Our tax system is rigged for billionaires who don't make their fortunes through income, like working families do,” Warren tweeted after the ProPublica report. “The evidence is abundantly clear: it is time for a #WealthTax in America to make the ultra-rich finally pay their fair share."