Continue Reading Below
"Right now, an heir with $500 million in yachts and fine art and a public school teacher with no savings can pay the same amount in federal taxes," Warren's exploratory committee said in a statement. "That’s because the rich and powerful run Washington and they make sure the rules are written to benefit themselves."
The wealth tax would apply to "ultra-millionaires," or those with more than $50 million in assets. The tax would be equal to 2 percent, but would rise to 3 percent for those who have assets valued at more than $1 billion, as first reported by The Washington Post.
According to economists, who hail from the University of California, Berkeley, and helped write the proposal, the tax would raise $2.75 trillion over the course of a decade. It would only apply to less than 0.1 percent of the population – about 75,000 families.
Additionally, the Massachusetts Democrat could unveil measures to prevent the wealthy from evading the payment – including a penalty for those eligible for the tax who seek to renounce their citizenship.
A spokesperson for Sen. Warren did not return FOX Business' request for comment. The senator has a petition for the "Ultra-Millionaire Tax" on her website.
Some progressive Democrats have shown a propensity toward imposing higher taxes on the country’s wealthier residents. Freshman New York Democrat Alexandria Ocasio-Cortez, for example, recently proposed raising taxes on incomes above $10 million to 70 percent – the proceeds of which would be used to help fund a new green energy plan.
Warren announced in December she was forming an exploratory committee ahead of a possible presidential bid in 2020. New York Democrat Kirsten Gillibrand has also formed an exploratory committee, while California Democrat Sen. Kamala Harris officially announced her candidacy. Harris said her campaign raised $1.5 million within the first 24 hours of the announcement.