71-year old Massachusetts Senator Elizabeth Warren is not a fan of wealthy people, no matter how that wealth was created.
She’s hoping to do something about it too, and on Monday she and her fellow member of the anti-rich club Senator Bernie Sanders of Vermont led a proposed new tax on people with high net worths.
They want a 3% total annual tax on households with a net worth between $50 million to $1 billion.
It’s called the “Ultra-Millionaire Tax Act”, and it has its target on what many Democrats feel is a wealth gap in the U.S. that only got worse during the coronavirus pandemic.
A logical question many people have is just how many American’s would this affect, and the answer is roughly 100,000 people, or about 1 in 1,000 families. The revenue incurred if this tax took effect is substantial, about $3 trillion over a 10-year period. “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%, and billionaire wealth is 40% higher than before the COVID crisis began,” Warren said in a statement.
Things aren’t as easy as the authors of the bill might suggest. Back in 2020, a study showed that taxes like the ones Warren and Sanders are pushing would reduce the economic output in the U.S. by almost 0.50%.