Senator Elizabeth warren, a Democrat from Massachusetts, said Tuesday that even with her Ultra-Millionaire Tax Act, the economic system would still be “tilted” in favor of America’s richest.
The progressive senator introduced wealth tax proposal Monday. According to the plan, a version of which she proposed during her unsuccessful presidential campaign, the country’s richest would be taxed 2% on their net worth over $ 50 million and 3% on net worth over $ 1 billion. dollars. The bill’s co-sponsors in the House of Representatives are Democrat Pramila Jayapal of Washington, chair of the Progressive Caucus, and Brendan Boyle, a moderate Democrat from Pennsylvania.
“Here’s the problem, it helps level the playing field a bit,” Warren told CNBC. Scream Box Tuesday morning. “Right now the 99% of America, that is, all those who do not have wealth of $ 50 million or more, paid about 7.2% last year of their total wealth in taxes. “
“The top tenth of 1%, the people who would be covered by wealth tax, paid around 3.2%, or less than half. You put a 2 cent wealth tax on them and the playing field is at least a little bit more level. always leans in favor of giant millionaires and billionaires. So it’s just a matter of trying to level it out so that everyone in America has a chance, ”the senator said.
Warren said his proposal builds on what has already been done in European countries and improves their policies. “We have learned from some of the mistakes they made in Europe. This version of the wealth tax covers all your assets,” she said.
The senator pushed for a number of other economic policies aimed at tackling growing economic inequalities. Warren led the charge to pressure the president Joe biden to write off at least $ 50,000 in student debt for borrowers, has advocated strongly for workers’ rights and higher wages and bills to fight corporate abuse. While Biden pushed for some progressive reforms, he also voiced his opposition to some.
So far, Biden has not supported the idea of the wealth tax or the cancellation of $ 50,000 in student loans. The president has previously said he will raise taxes on high-income people, that he will not take tax on their net worth, and has expressed support for some form of student loan forgiveness up to $ 10,000.
Warren’s wealth tax proposal comes as America’s richest have recorded massive economic gains over the past year, while millions of Americans have lost their jobs and struggled economically during the pandemic. Estimates showed that only 660 billionaires in the United States saw their combined wealth increase by about $ 1.3 trillion during the COVID-19 crisis.
Although Warren’s wealth tax is not widely supported by lawmakers in Congress, polls have shown the proposal enjoys bipartisan support across the country.
A Reuters / Ipsos poll conducted in early 2020 showed that nearly two-thirds of Americans strongly or somewhat agree that “the very rich should contribute an additional portion of their total wealth each year to support public programs.” . This included 77 percent of Democrats and a small majority (53 percent) of Republicans. A similar poll conducted last February by The Hill-HarrisX found that more than two-thirds (67%) of Americans believe billionaires should be subject to wealth tax. Although this survey showed that 88 percent of Democrats and 66 percent of Independents supported the idea, just under half (47 percent) agreed.
Jayapal tweeted on Tuesday about the legislative proposal, saying it would “generate $ 3 trillion to invest in Covid relief, education, infrastructure, clean energy and more.” The MP added: “And all it takes is for the ultra-rich to finally pay their fair share.”
News week contacted Warren’s office for further comment.