Page 12 - Investment Advisor March 2021

Beginnings

WASHINGTON WATCH

By Melanie Waddell

Wealth Tax, RMD Boost to Be Floated in

New Congress

Sen. Warren plans to introduce legislation implementing a tax on fortunes over
$50 million, while Rep. Neal plans reintroduction of Secure Act 2.0

corporations, the wealthy, and the well-
connected to finally pay their fair share in
taxes,” Warren said in a statement.
“I look forward to being a progressive
voice at the table to secure meaning-
ful relief and lasting economic security
for struggling families, including as an
aggressive advocate for accomplishing
much of our agenda through the budget
reconciliation process,” she explained.
The Senate Finance Committee has
jurisdiction over taxation and reve-
nue policy, including oversight of the
Internal Revenue Service.
Andy Friedman, founder and prin-
cipal of The Washington Update, told
Investment Advisor in an early February
email that Warren has been propos-
ing a wealth tax “since well before the
Democratic debates. Some observers
awmakers plan to introduce leg- Congress — said she’ll introduce leg- assert that a tax based on wealth, rather
islation in the 117th Congress islation implementing a wealth tax on than on income, is unconstitutional. I
L to boost the required minimum fortunes over $50 million. will leave that question to the constitu-
distribution age as well as implement a Senate Majority Leader Chuck tional lawyers.”
wealth tax. Schumer, D-NY, announced Senate That being said, “a tax based on wealth
House Ways and Means Committee Democratic committee memberships in appears exceedingly difficult to imple-
Chairman Richard Neal, D-Mass., plans early February. All memberships have ment administratively,” said Friedman,
to reintroduce the Securing a Strong been agreed upon by the Democratic a former tax attorney. “Currently, the
Retirement Act of 2020, which would Conference and are subject to ratifica- IRS values an individual’s assets once Susan Walsh/AP Photo/Bloomberg
boost the RMD age to 75 from 72. tion by the full Senate. during a lifetime, to compute estate tax
Sen. Elizabeth Warren, D-Mass. — “I’m very pleased to join the Finance at death. That process is fraught, requir-
who’s set to become a member of the Committee, where I’ll continue to fight on ing agreement on valuations of assets for
Senate Finance Committee in the new behalf of working families and press giant which there is no ready market, such as

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