Warren’s office said the progressive Democrat plans to introduce legislation calling for a wealth tax on fortunes valued at more than $50 million as she joins the Senate Finance Committee in the 117th Congress.
As opposed to taxes levied on income and payrolls, a wealth tax would target the value of accumulated assets owned by rich Americans – or their net worth. The idea, generally, is to combat growing economic inequality, creating a more level playing field among the wealthy and middle classes by adjusting the tax system.
During her campaign for the presidency, Warren introduced a wealth tax known as her “ultra-millionaire tax,” and the pending proposal is expected to follow roughly the same parameters, the senator’s office said.
The wealth tax would apply those with more than $50 million in assets. The tax would be equal to 2 percent, but would rise for those who have assets valued at more than $1 billion. Warren’s initial proposal called for the surtax to rise to 3% -- though she later raised the top rate to 6%.
In a statement on Tuesday, Warren’s office did not specifically say what rate would be applied to fortunes over $1 billion, saying simply there would be “an additional surtax on every dollar of wealth over $1 billion.”
It was previously estimated that tax would raise $2.75 trillion over the course of a decade and would only apply to less than 0.1 percent of the population – about 75,000 families.
Warren’s wealth tax, which is designed to break up the growing concentration of wealth, would raise the tax burden on the rich by 1.1 percent to 4.3 percent.
Sen. Bernie Sanders, I-Vt., also proposed a wealth tax as part of his platform for the presidency.
The proposals were controversial and drew widespread criticism during the campaign cycle, including – unsurprisingly – from some of the nation’s billionaires.