By Jason Devaney – Re-Blogged From Newsmax
Sen. Elizabeth Warren, D-Mass., appears to be borrowing an idea from a new member of the opposite chamber by considering a wealth tax on the richest Americans.
According to The Washington Post, economists working with Warren — who recently formed an exploratory committee to look into running for president in next year’s election — are working on the plan with her.
Liberal economists Emmanuel Saez and Gabriel Zucman of the University of California, Berkeley are advising Warren on the idea, the Post reported. Under the plan, Americans whose assets are above $50 million would be hit with a 2 percent wealth tax. People with more than $1 billion will see a 3 percent wealth tax on their assets.
“The Warren wealth tax is pretty big,” Saez told the Post. “We think it could have a significant affect on wealth concentration in the long run. This is a very interesting development with deep root causes: the fact inequality has been increasing so much, particularly in wealth, and the feeling our current tax system doesn’t do a very good job taxing the very richest people.”
Democrats have historically favored higher taxes on the rich. Rep. Alexandria Ocasio-Cortez, D-N.Y., a 29-year-old socialist who took office earlier this month, recently suggested imposing a 70 percent tax on the wealthiest Americans.
Saez told the Post that Warren’s wealth tax would bring in $2.75 trillion in tax revenue over 10 years. Roughly 75,000 families would be taxed under the plan.
To combat tax evasion by those impacted by the tax, Warren’s plan would call for more IRS funding, audits on families who are taxed by it, and a one-time tax penalty for people worth more than $50 million who try to attempt to renounce their U.S. citizenship in lieu of paying the tax.