Jeff Bezos would have paid $5.7 billion out of his $191.2 billion fortune.
How much Bezos, Musk, Gates and Zuckerberg would pay under Warren's wealth tax
The bill, called the Ultra-Millionaire Tax Act, would apply an annual 2% tax on individual net worth between $50 million and $1 billion. Individuals would owe an annual 3% tax on net worth above $1 billion. 💰Here are the details of Warren's proposed tax.
Photo: i.insider.com
Details Of the Proposal
"The ultra-rich and powerful have rigged the rules in their favor so much that the top 0.1% pay a lower effective tax rate than the bottom 99%," Warren said in a statement.
A University of California Berkeley analysis, cited by Warren, estimates that the tax would generate $3 trillion in revenue over 10 years.
"If the past continues, billionaire wealth has grown much faster than the economy and wages overall, and that's been true for 40 years. In 1983, there were 18 billionaires," said Chuck Collins.
AUditing as An Alternative
The IRS has in recent years audited people earning less than $20,000 a year almost as often as those in the top 1%. In part, that's because it's easier to audit the poor.
California Rep. Ro Khanna's bill is a less controversial alternative to Sen. Elizabeth Warren's wealth tax.
Is a wealth tax even possible?
Yellen said that such a tax would have "very difficult implementation problems." But she is looking into other tax routes, including capital gains and the corporate tax.
Role in Pandemic Recovery
"We've been talking about wealth inequality in this country for several years now," Warren said. "This pandemic could accelerate it at a rate that we had never even imagined in our worst nightmares."