Page 12 - Investment Advisor April 2021

Beginnings

WASHINGTON WATCH

By Melanie Waddell

Will Elizabeth Warren’s Wealth Tax See the

Light of Day?

Economists see the tax bringing in $3 trillion in revenue over a 10-year period.

Bloomberg reported that the 100
richest Americans would hand over
more than $78 billion of their personal
fortunes under the plan.
Co-sponsors of the bill are: Sens.
Bernie Sanders, I-Vt.; Sheldon
Whitehouse, D-R.I.; Jeff Merkley,
D-Ore.; Kirsten Gillibrand, D-N.Y.; Brian
Schatz, D-Hawaii; Edward Markey,
D-Mass.; and Mazie Hirono, D-Hawaii.
“The ultra-rich and powerful have
rigged the rules in their favor so much
that the top 0.1% pay a lower effec-
tive tax rate than the bottom 99%, and
billionaire wealth is 40% higher than
before the COVID crisis began. A wealth
tax is popular among voters on both
sides for good reason: because they
understand the system is rigged to ben-
efit the wealthy and large corporations,”
Warren said in the statement.
“As Congress develops additional
en. Elizabeth Warren, D-Mass., lawmakers said in a statement. plans to help our economy, the wealth
unveiled on March 1 the Ultra- The lawmakers cite a 2021 analysis by tax should be at the top of the list to help
SMillionaire Tax Act, which would economists Emmanuel Saez and Gabriel pay for these plans because of the huge
impose a 2% annual tax on the net worth Zucman from the University of California, amounts of revenue it would generate,”
of households and trusts between $50 Berkeley, which found that the legislation Warren said.
million and $1 billion. would bring in at least $3 trillion in rev-
The bill, introduced with Reps. enue over 10 years — without raising taxes ‘NEVER HAPPEN’
Pramila Jayapal, D-Wash., and on the 99.95% of American households Ed Slott of Ed Slott & Co., told Investment
Brendan Boyle, D-Pa., “would level that have net worth below $50 million. Advisor in an email that Warren’s wealth
the playing field and narrow the racial The bill would also impose a 1% tax “will never happen.” Stefani Reynolds/Bloomberg
wealth gap by asking the wealthiest annual surtax (3% tax overall) on the net The idea of a wealth tax “may sound
100,000 households in America, or the worth of households and trusts above fair to those who are not anywhere
top 0.05%, to pay their fair share,” the $1 billion. near that wealthy and believe these

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